Cirrus Turns on Taps at Offshore Netherlands M7-A Field

Netherlands continental shelf: Block M7
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Noble Lynda Bossler
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Cirrus has successfully completed the drilling and testing of the M7-A01X production well on the M7-A field. The well was spudded with the Noble Lynda Bossler jackup drilling rig on July 17, 2009 and reached a total drilled depth of 3,560 m on September 3, 2009. The quality of the primary Triassic reservoir is higher than in the original discovery well and, during clean up, the well flowed at a maximum rate of 43.1 MMscf/d at a FWHP of 261 bar (3,786 psig) through a 48/64"choke.

The well has been tied in to the fully commissioned M7-A platform and export facilities and production commenced on September 12, 2009. The long term average production rate is limited by capacity at the export facilities at 21.0 MMscf/d which is expected to result in an extended period of plateau production. The price received for Dutch gas is based on a basket of alternative energy sources and historically has closely followed that of crude oil with a lag of about 6 months. At a Brent oil price of US$70.00 per barrel, the future realised price for M7-A gas is expected to be about C$9.50 per thousand cubic feet.

Partners in the M7-A development are Cirrus (42.75% and operator), DSM Energie B.V. (5.0%), Energy06 Investments B.V. (2.25%) and EBN (50%).

Cirrus President and CEO David Taylor commented, "The start-up of the M7-A Field marks a significant milestone for Cirrus in the Netherlands as both the company's first operated, completed development project and first production in the country. This achievement underscores a core component of our business strategy in The Netherlands where we intend to establish Cirrus as a motivated and capable developer of similar discovered and undeveloped fields."

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