Cirrus Encouraged by Netherlands Drilling

Block Q14
(Click to Enlarge)

Cirrus announced that its wholly owned subsidiary, Cirrus Energy Nederland B.V., has successfully drilled the Q14-3 exploration well to a total true vertical depth ("tvd") of 3,020 meters sub-sea. Partners in the well are EBN B.V. (40%) and TAQA Offshore B.V. ("TAQA") (30%) with Cirrus (operator) retaining a 30% interest subsequent to a previously announced farmout agreement with TAQA.

The Q14-3 well, located in offshore Netherlands Block Q14 in 18 metres of water, was designed to test a well-defined fault block with the primary target being Triassic-aged Bunter sandstone reservoirs with secondary potential in Permian-aged Zechstein sandstone reservoirs.

The primary target was encountered at 2554 metres tvd sub-sea with indications of gas during drilling and coring despite substantial mud losses to the formation. A 28m core was cut over the reservoir section. The secondary target was encountered at 2829 metres tvd sub-sea which also had indications of gas during drilling and a second 28m core was cut in this interval. Both potential reservoir sections have been open-hole logged and preliminary petrophysical evaluation indicates the presence of gas in 7.5m of net pay in the Triassic Bunter reservoir with average porosities of 11%. The secondary Zechstein reservoir appears to be gas-bearing but tight.

Partners have agreed to flow test the Bunter reservoir with results expected in approximately 10 to 15 days.

Cirrus' President, David Taylor, commented, "These preliminary results from Cirrus' first exploration well in The Netherlands are encouraging although both flow test data and further geological and geophysical analysis will be required before the economic potential of the Q14-Alpha structure can be assessed. It is noteworthy that the drilling operations, which were the first to be managed by Cirrus' internal drilling team in The Netherlands, went smoothly and were fully on prognosis and budget."

Forward Drilling Program

It was expected that, once the Q14-3 well was completed, the Noble Lynda Bossler drilling rig would be moved to the M7-A platform to drill the development well on the field. However, the installation of the M7-A platform has been significantly delayed by bad weather conditions in the Dutch North Sea and therefore the rig will be moved to a different location for the second well in Cirrus' drilling program. Two alternative drilling locations that are under active consideration are appraisal wells on either the KlO-Bravo oil field or the L8-D gas field.

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