News Monday of a successful first flow test at the Barquentine-2 well, in the Rovuma Basin Offshore Area-1 Mozambique, has "positive implications" for other explorers targeting similar sandstone reservoirs elsewhere in Africa and the Falkland Islands, said London-based Merchant Securities.
Cove and its partner Anadarko (operator of the license) reported that the Barquentine-2 well flowed gas at an equipment-constrained rate of between 90 and 100 million cubic feet per day. The firms said that test data supports potential unconstrained flow rates of up to 200 Mmcfpd.
Merchant said that Cove's well test results were positive for companies operating on similar sandstone reservoirs "that are considered too large to be real and therefore suffer from a credibility discount in the equity market". These include some of the firms currently exploring in the Falkland Islands as well as Chariot Oil & Gas, which is currently drilling on northern block 118A as it targets the Tapir South prospect
The Barquentine-2 well is located in water depths of approximately 5,400 feet. The drillstem test was conducted by the Deepwater Millennium
(DW drillship), which is planned to move to the Barquentine-1 location for a second flow and interference test in the complex.
The 2012 testing program also includes drillstem tests in the Lagosta
areas to the south of the Barquentine discovery area.
"We have always believed in the superb quality of the gas reservoirs; nonetheless it gives me much pleasure to announce that the first gas flow test from our prolific block in Area 1 Rovuma Offshore has been highly successful; at the top end of our expectations and positive for the whole project," said Cove Energy CEO John Craven in a press statement. "The results have significant implications for the optimal deliverability of gas from this world-class discovery, while also indicating that savings on development costs may be achieved, due to the potential high productivity rates."