Irvine Energy plc has provided an update showing good progress is being made across its project areas in Oklahoma and Kansas, with 40 wells now producing across all its license areas. A further update will follow in the coming weeks.
In Oklahoma, the Priegel 3-10 has begun producing oil at 12 barrels of oil per day ('BOPD'), now that water disposal facilities are in place. This is highly encouraging since this well is in the structurally lowest position of the Booch sandstone channel, indicating that the entire channel is charged with oil from the base.
The Company plans to drill additional wells and prove up the entire channel, which has circa 18 million barrels of oil in place. Conservative estimates project there are one million gross barrels of recoverable reserves, extractable under primary production. These rates are highly economic since the formation is at a depth of only 2,000 feet and can be drilled and completed for approximately $300,000 per well. As many as 33 additional oil development locations exist to drill out the Booch sandstone channel. It is estimated after forced pooling that Irvine would have a 25% working interest in this development.
The Company has also completed the multistage fracture stimulation of its first horizontal Woodford shale well, Jones 1-5H, in Oklahoma. Two of the four frac treatments achieved excellent penetration in to the Woodford shale formation and the well started flowing gas with 400 p.s.i. flowing casing pressure, prior to the bridge plugs being set. The flow back of frac fluids has commenced with an average unassisted fluid flow back rate of five barrels an hour.
The full well head stream is presently piped to temporary frac tanks, where gas has been observed but not measured. Over 15,000 barrels of slick water frac fluid were used in the frac process and the Operator advises that 30-40% of this fluid will need to be flowed back (recovered from the well) before gas flow can be expected to be established.
This process may take several weeks at the current flow back rate. The installation of the water separator facility and the gas sales line is complete, allowing immediate gas sales to commence upon recovery of necessary frac fluids.
In Kansas, the Rock 1-5 is currently producing oil at moderate rates of 6 BOPD. Adjustments to the submersible pump are currently in progress and are expected to improve rates. The Ayers 1-20 has discovered oil in the Bartlesville formation at economic rates. The well is being fracture stimulated next week to increase production further. Results will be reported in the next operational update.
The Company has isolated and repaired a pipeline leak at its Niobrara project and the management continues to make good progress in dealing with the pressure stabilization and system balancing issues, reported in a previous operations update. The Company currently has 18 wells producing at Niobrara and expects to have production increasing in the near term.
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