Valeura Energy Inc (TSX:VLE, OTCQX:VLERF) has announced completion of an eight-well drilling campaign at Licence B5/27 (100% operated working interest), offshore Gulf of Thailand.
Sean Guest, President and CEO commented:
“Block B5/27 is a prime example of how with ongoing drilling activity we can continue to commercialise new accumulations to maintain a stable and predictable stream of cash flow from each of our Gulf of Thailand assets. At the same time, we have appraised several additional reservoir intervals which will form the basis of a future drilling campaign on the block. We expect to demonstrate further reserves adds at our next year-end reserves evaluation, giving rise to yet another extension in the economic life of the field.”
Jasmine C
Valeura drilled two development wells from the Jasmine C platform. Both wells were successful and exceeded management’s expectation for total oil pay and are currently online as producers.
Well C-30ST1H was drilled as a horizontal lateral within the 400 sand reservoir and was completed as an oil producer. The well’s completion design includes an autonomous inflow control device, which has made it possible to complete the well as an oil producer despite being drilled into a mixed gas/oil transition zone.
Well C-39 was directionally drilled to develop three separate reservoir intervals (the 330, 160, and 50 sands), and was successful with all targets. It was completed as a multi-zone producer, with the 330 interval now online.
Ban Yen A
The Company drilled three wells from the Ban Yen A platform. Two were primarily development wells with additional appraisal targets, and one was a dedicated appraisal well. The two development wells were successful, having exceeded expectations for total pay, and are online contributing to production.
Well BYA-35ST1 was drilled as a deviated multi-objective well. The well successfully developed remaining oil volumes from multiple already-producing reservoirs, and was completed for production from a total of six sand reservoirs, which will be produced sequentially. In addition, the well appraised several targets which will now be matured for inclusion in a future development drilling programme. Total oil pay encountered was approximately double management’s pre-drill estimates.
Well BYA-42 was drilled as a deviated well targeting remaining oil in a single reservoir interval (the 50 sands), and has been completed as a producer. In addition, the well also successfully appraised two shallower reservoir targets, being the 480 and 260 sands, which are being evaluated as potential future infill drilling locations.
Well BYA-41 was an appraisal well drilled to evaluate the potential of the 50 series reservoir sands. The well encountered oil and identified a deeper oil-water contact than predicted, but the reservoir target was found to be poorly developed at this location, resulting in small volumes. As a result, the Company has chosen not to complete the well as a producer, but will integrate the data gathered into its models, with the objective of identifying alternative locations in the vicinity to develop this reservoir.
Jasmine D
Valeura Energy drilled two deviated development wells from the Jasmine D platform. Both were successful and are now contributing to production.
Well D-44 was drilled as a deviated development well with multiple targets. The well encountered its primary targets (the 500 and 600 series sands) as intended, successfully accessing remaining oil at the structure’s crest. In addition, the well verified upside in all of its secondary targets, covering five additional reservoir sands, which indicates the potential for further development of this fault block in the future.
Well D-45 was also drilled as a deviated development well into the block’s main fault block. The well encountered oil in all three of its primary targets (the 250, 245, and 160 sands) and was completed as a multi-zone producer. In addition, the well encountered oil in its secondary 680 sand target, which will be developed by an additional well as part of a future development campaign.
Ratree
The Ratree exploration well intersected its target sand reservoirs as prognosed but encountered only trace amounts of hydrocarbons. Results suggest that oil did not migrate to this particular reservoir trend, resulting in insufficient hydrocarbon charge. Further prospective trends within the B5/27 block are being evaluated for future exploration potential.
The block B5/27 drilling programme was completed safely, on time, and under budget. As a result of the campaign, the Company has maintained oil production rates approximately consistent with its Q1 performance, thereby offsetting the impact of natural declines.
Valeura Energy’s contracted drilling rig is now being mobilised to the Nong Yao field, where the Company plans to drill a programme of approximately 10 development wells.
