Solo Oil Plc Test Results Ntorya-2, Tanzania (8049Y)
March 08 2017 - 2:01AM
UK Regulatory
TIDMSOLO
RNS Number : 8049Y
Solo Oil Plc
08 March 2017
FOR IMMEDIATE RELEASE, Embargoed until 7 am 8 March 2017
SOLO OIL PLC
("Solo" or the "Company")
Test Results Ntorya-2, Tanzania
Solo is pleased to confirm that the Ntorya-2 appraisal well has
now been successfully flow tested and is being suspended for future
gas production. Ntorya-2 was drilled in the onshore Ruvuma Basin of
southern Tanzania, on the Mtwara Licence (Solo 25%, Aminex plc
("Aminex") 75% and operator) part of the onshore Ruvuma Production
Sharing Agreement (the "Ruvuma PSA").
Highlights:
-- Total 51 metres gross sandstone reservoir section was
penetrated associated with significant gas influx and high pressure
whilst drilling
-- Flow testing performed over a gross 34 metres interval of gas
pay in what is interpreted as the dry gas portion of the
reservoir
-- Flow rates, limited by choke size, were of dry, high quality,
gas at an average stable rate of 17 million standard cubic feet per
day ("mmscfd") (approximately 2,830 barrels oil equivalent per day
("boepd"))
Neil Ritson, Solo's Chairman commented:
"The well exceeded our pre-drill expectations for both reservoir
extent and pressure. Ntorya-2, when taken together with the
Ntorya-1 discovery well and the mapped seismic features, clearly
indicates a gas volume of significant commercial interest. Flow
rates were restricted for technical reasons; however, they fully
meet the requirements for a declaration of commerciality and
application for a development licence. A forward work programme,
including perhaps acquiring 3D seismic data and drilling further
appraisal/development wells, will we believe lead to a gas
development of national significance. This is a highly significant
well result for Solo, our partner Aminex and to the United Republic
of Tanzania."
At a drilling depth of 2,593 metres the well encountered a gross
gas-bearing reservoir unit of approximately 51 metres thickness.
This reservoir section was associated with significant gas influx
during drilling and the reported pressures were higher than
expected. Following the previous announcement on 6 February 2017,
the well was drilled to a final total vertical depth of 2,795
metres and a production liner was then cemented in place prior to
flow testing.
The well was subsequently tested over a gross 34-metre zone,
interpreted as dry gas pay, for a total period of approximately 6
1/2 days through a variety of choke sizes; not exceeding
40/64-inch. In order to preserve reservoir integrity and in view of
the pressures, flow was limited by the choke and during the test
the well flowed dry, high quality, gas at an average stable rate of
17 mmscfd (approx. 2,830 boepd) through a 40/64-inch choke. Strong
pressure recovery occurred in all instances during the well test
build-up periods. Aminex has also reported that mud invasion during
the drilling of the reservoir may have caused some formation damage
and have tempered gas flow rates. No open-hole flow rate was
attempted during the flow tests to avoid any risk of a breakdown in
reservoir integrity.
According to the interpretation of the wireline logs, Ntorya-2
encountered the equivalent reservoir section seen in the Ntorya-1
well at a depth approximately 74 metres shallower. No formation
water was produced during the tests. Aminex believe that the
absence of water on test confirms the previous interpretation that
the Ntorya-1 and Ntorya-2 area contains a substantial volume of gas
in place. Following receipt of further analysis Aminex will be able
to revise their estimates of in-place gas volumes.
The Ntorya-2 well encountered the reservoir at a shallower depth
in the structure and condensate was not observed. The fluids
recovered down-dip at Ntorya-1 showed a higher condensate-gas ratio
and this suggests some fractionation of fluids with depth, further
suggesting an extensive gas column is present with in the Ntorya
gas-condensate accumulation.
Ntorya-2 also encountered traces of oil in the gross reservoir
interval. Aminex is updating the basin model to determine the
optimal drilling depths and locations for future development wells.
It is anticipated that following a complete interpretation of all
the data from the well Solo and Aminex will apply for a 25-year
development licence over the Ntorya appraisal area. Ntorya-2 will
be suspended, as was Ntorya-1, as a future production well.
Solo owns a 25% non-operating interest in the Ruvuma PSA, and
the Ntorya-1 and -2 wells, which are operated by Aminex plc.
Qualified Person's Statement:
The information contained in this announcement has been reviewed
and approved by Neil Ritson, Chairman and Director for Solo Oil
plc, who has over 38 years of relevant experience in the oil
industry. Mr. Ritson is a member of the Society of Petroleum
Engineers (SPE), an Active Member of the American Association of
Petroleum Geologists (AAPG) and is a Fellow of the Geological
Society of London (BGS).
For further information:
Solo Oil plc
Neil Ritson +44 (0) 20 3794 9230
Beaumont Cornish Limited
Nominated Adviser and
Joint Broker
Roland Cornish +44 (0) 20 7628 3396
Shore Capital
Joint Broker
Jerry Keen
Beaufort Securities
Joint Broker +44 (0) 20 7408 4090
Jon Belliss +44 (0) 20 7382 8300
Glossary :
appraisal the collection of additional
data, usually in the form of
additional wells, on an existing
discovery prior to sanctioning
a development plan
--------------------- -----------------------------------------
boepd barrel of oil equivalent per
day
--------------------- -----------------------------------------
choke a device used to create a controlled
pressure drop and allow some
expansion of the gas and to restrict
flow
--------------------- -----------------------------------------
condensate gas condensates are liquids that
can condense from gas when the
temperature and pressure drop
sufficiently low, typically condensates
exhibit gravities of > 45 degree
API
--------------------- -----------------------------------------
discovery a petroleum accumulation for
which one or several exploratory
wells have established through
testing, sampling and/or logging
the existence of a significant
quantity of potentially moveable
hydrocarbons
--------------------- -----------------------------------------
dry gas hydrocarbon gas produced with
no appreciable quantity of formation
water
--------------------- -----------------------------------------
flow or production a flow test or well test involves
test testing a well by flowing fluids
to surface, typically through
a test separator. Key measured
parameters are water, oil and
gas flow rates, downhole pressure
and surface pressure. The overall
objective is to identify the
well's capacity to produce hydrocarbons
at a commercial flow rate
--------------------- -----------------------------------------
in-place the volume of hydrocarbons, oil
or gas, estimated to be in place
within the reservoir converted
to standard temperature and pressure
--------------------- -----------------------------------------
liner a length of casing that runs
from a set point, such as total
depth, to a point part way up
inside the previously set casing
string
--------------------- -----------------------------------------
mmscfd million standard cubic feet of
gas per day
--------------------- -----------------------------------------
pay or net pay reservoir or portion of a reservoir
formation that contains economically
producible hydrocarbons. The
overall interval in which pay
sections occur is the gross pay;
the portion of the gross pay
that meets specific criteria
such as minimum porosity, permeability
and hydrocarbon saturation are
termed net pay
--------------------- -----------------------------------------
PSA petroleum sharing agreement
--------------------- -----------------------------------------
pressure build-up the monitoring of well pressure
with the well shut-in following
a flowing period
--------------------- -----------------------------------------
petrophysics the study of the physical and
or petrophysical chemical properties of rock formations
analysis and their interactions with fluids
--------------------- -----------------------------------------
reservoir a subsurface rock formation containing
an individual natural accumulation
of moveable petroleum
--------------------- -----------------------------------------
sandstone a clastic sedimentary rock whose
grains are predominantly sand-sized.
The term is commonly used to
describe consolidated sand or
a rock made of predominantly
quartz sand
--------------------- -----------------------------------------
seismic the use of sound waves generated
by a controlled source to ascertain
the nature of the subsurface
structure, lithology and fluid
content
--------------------- -----------------------------------------
suspended (a well) left in a safe situation
by means of downhole barriers
but suitable for later re-entry
and use for further drilling,
testing or production
--------------------- -----------------------------------------
wireline or electric tools used within the wellbore
logs to measure the rock and fluid
properties of the surrounding
formations
--------------------- -----------------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
DRLSSIEEWFWSEED
(END) Dow Jones Newswires
March 08, 2017 02:01 ET (07:01 GMT)
Scirocco Energy (LSE:SCIR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Scirocco Energy (LSE:SCIR)
Historical Stock Chart
From Apr 2023 to Apr 2024
