A production liner has now been set across the reservoir intervals, and completion operations are currently underway. First gas is expected to be produced from the A2 well towards the end of August 2007. The A2 well will produce gas from the lower reservoir first. Once the reserves from the lower reservoir have been fully exploited, the reserves in upper reservoir will then be produced, maximizing overall gas recovery in this well.
After completion of the A2 well, the Todco 250 will move back to the A1 well and will commence completion operations there. The A1 well is expected to be on production in mid September 2007.
Commenting on this development, Tony O'Reilly Jnr. Chief Executive said:
"We are very pleased with this additional discovery at High Island. Following on from the successful gas discovery at High Island A268 in January 2007, we immediately elected to move the discovery into fast-track development. A production platform, with the capability to process the gas and export it to market via nearby existing infrastructure, has been successfully installed on High Island A268 to process gas from the A1 well.
"The inclusion of gas from the A2 well is an added bonus for the partners involved as the economic justification for the production platform was based solely on production from the A1 well.
"All going according to plan, we would expect commercial production of gas from both wells at High Island A268 in mid-September 2007, thereby validating our strategy to enter into development/production opportunities in the Gulf of Mexico, where the timelines are short".
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