EnCore Oil has announced the result of successful testing operations on the Cladhan appraisal well in the UK northern North Sea.
It said the well flowed at a stable rate of about 5,900 barrels of oil per day (bpd), with the flow rate restricted by the capacity of the equipment.
EnCore said operator Sterling Resources had indicated that, with larger completion tubing it estimated that the well was capable of producing more than 15,000bpd.
Alan Booth, EnCore’s chief executive, said: “The quality and deliverability of the Cladhan reservoir has been further confirmed by this excellent test result. We believe it is very likely that a commercial accumulation at Cladhan has already been established.
“We look forward to the results of a sidetrack well which we hope will enable us to define the location of the oil-water contract.”
Sterling chief executive Mike Azancot told the Press and Journal: “Now the challenge is to figure what the development’s going to be and plan for further appraisal.”
The second sidetrack of the appraisal well is so important as its purpose is to seek out oil-water contact. The deeper the rig drills without encountering water, the larger the field’s reserves will be.
While he indicated that the second sidetrack is going ahead, Mr Azancot said a further appraisal well planned in the second quarter of 2011 might be drilled during the first quarter instead, contingent on weather, rig rates and the views of other partners in Cladhan.
An optimistic Mr Azancot said the Cladhan programme had without doubt delivered excellent results.
Mr Booth added that, at the Catcher area in the central North Sea, EnCore was finalising well locations with its partners following the acquisition of site surveys which were now almost complete. He said: “We hope to return to drilling at Catcher in late September or early October for a programme of between two and four wells.
“A turnkey contract for use of the Galaxy II rig is being negotiated and it should be ready for signature once the necessary approvals have been received. Until the contract is signed, exact timing of the drilling programme cannot be guaranteed.”
The equity in the Cladhan joint-venture partnership is Sterling (39.9%), EnCore (16.6%), Wintershall UK (33.5%) and Dyas (10%).
Partners in Catcher are EnCore (15% and operator), Premier Oil (35%), Wintershall UK (20%), Nautical Petroleum (15%) and Agora Oil and Gas (15%).