At the company's 40% owned Huntington oil find located in Block 22/14b, which was discovered in June this year, appraisal drilling of the northwestern half of the Paleocene "Forties" oil accumulation has been completed. Drill-stem testing of two intervals within 101 vertical feet of oil bearing Paleocene Forties oil pay was conducted on the eighth (8th) appraisal well bore. The first test was conducted across 20 feet of perforations from 9,982-10,002 feet measured depth close to the free water contact.
Oil flowed from this first test at a maximum rate of 2,100 Bbl/d through a 44/64th inch choke at 371 psi flowing pressure. The second test was conducted through 75 feet of perforations from 9,870-9,945 feet measured depth at the top of the reservoir interval. The maximum oil flow recorded from this second test was 5,208 bbl/d of 44 degrees API oil through a 72/64 inch choke at 380 psi flowing pressure. No water or sand was recovered in either test.
Drilling operations will commence shortly on the next phase of appraisal drilling at Huntington. This single appraisal well bore will attempt to target the oil/water contact in the Jurassic Fulmar sands on the flank of the structure well below the elevation tested by the discovery well drilled in the second quarter. This well is expected to be completed in the first quarter of 2008.
Appraisal of the Company's 100% owned Shelley oil accumulation located in Block 22/2b and 22/3a has been completed. The last phase of the appraisal program consisted of the drilling of 14 appraisal well bores to define the limits of the Paleocene Forties sand oil accumulation and to collect additional reservoir data.
These operations were also successful in extending the known oil column and confirming the location of the oil accumulation's free water contact. This was achieved through coring of the reservoir and by perforating a 14 foot interval at and immediately above the free water contact in the last well-bore of the appraisal program. A drill-stem test preformed over the interval to evaluate the nature of the fluid and the production behavior at and above the free water contact was successful; flowing 1,930 Bbl/d of oil, oil emulsion and water through a 44/64 inch choke at 298 psi flowing pressure.
The company's current plans are to initially develop the oil accumulation with up to three horizontal production wells tied into the Sevan Voyageur FPSO. First oil is currently estimated to occur late in the third quarter to early in the fourth quarter of next year.
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