Nido, as Operator of Service Contract 54A (SC 54A), provided an update on the operations at Tindalo.
Since the last operations update on December 22, 2010, subsequent water analysis from Zones 1, 2 and 3 indicated that produced water was formation water. In addition, increasing water-cuts and declining oil production rates during the period of the test indicates that continued production from Tindalo would be uneconomic and the decision has therefore been taken by the Joint Venture to abandon the well. The abandonment program will shortly be underway and will be completed in January 2011.
While abandonment activities on Tindalo are underway, Nido, along with its Joint Venture partners will decide whether to demobilize the production equipment and hardware from SC 54A, or to retain the equipment for further work within the permit.
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