DNO Drills Successful Appraisal Well on West Heather

Well 2/5-19y, drilled to appraise the Northern Area of West Heather, has now been tested. The well was partially perforated over a 150 feet section of Brent reservoir at a depth of around 9,000 feet and flowed 38 degree API oil through a 48/64" choke at a rate of 6,000 barrels per day and at a wellhead pressure of 640 psi. Based on the test results, it is estimated that the well is capable of producing in excess of 10,000 barrels oil per day. The well will now be suspended and it is envisaged that it will be brought into production along with two other production wells as part of a subsea development project tied back to the Heather platform. This is located some 7 km to the east of the surface location of the wells.

Dr Stewart Watson, Chief Executive said "DNO is extremely pleased with the results of the well test which has proven that commercially exploitable hydrocarbon reserves are available in close proximity to the Heather production infrastructure. Oil was first discovered in the West Heather Area in 1977 when well 2/5-8b was drilled. In the past twelve months DNO has drilled two wells and although evaluation of the latest results is still ongoing, we estimate that there is over 100 million barrels of oil in place. Assuming a development involving three production and two water injection wells and a recovery factor of 35 % it is estimated that around 35 million barrels of oil will be recovered from West Heather. Together with 10 million barrels of recoverable oil estimated for the North Terrace structure, the total recoverable oil reserves within the two West Heather satellites now equates to 45 million barrels ie some 5 million barrels more than previously estimated".

Dr. Watson added, "I am particularly pleased for our new co-venturers: GlobalSantaFe's oil and gas subsidiary, Challenger Minerals Inc (CMI) and Palace Exploration Company, that as new entrants to the UKCS have experienced success at the first attempt. This bodes well for the future and hopefully will encourage others to follow".

The well was drilled and tested on a turnkey basis by GlobalSanatFe's Aberdeen-based well engineering group, which employed the company's own Glomar Arctic IV semisubmersible drilling rig for the project. The company's engineers consulted on the well design and supported DNO by overseeing and managing the project. This is the first time in the North Sea GlobalSantaFe has been a part of all aspects of a drilling program, including taking and equity interest in the well, as well as providing equipment, engineering expertise and a range of drilling management services.


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