Sydney, June 13, 2006 AEST (ABN Newswire) - Petsec Energy Ltd (ASX: PSA)(PNK: PSJEY) has announced an update of the activities for the offshore China Oil Operation.
The following is a copy of a further update released today from the operator of the well ROC Oil Company Limited:
KEY POINTS
- Production testing of each of three separate hydrocarbon columns encountered by the Wei-6-12S-1 oil discovery offshore China, has resulted in oil flows from all test zones and a total collective stabilised rate up to 5,750 barrels of oil per day ("BOPD").
- The next step will be drilling the first side-track well, Wei 6-12S-1Sa, which will core the relevant reservoir intervals.
1. OPERATIONS
Since the last Stock Exchange Release on 24 May 2006 on the Wei-6-12S-1 exploration well in Block 22/12, Beibu Gulf, offshore China, three separate production tests have been conducted successfully. As at 0600 hours (local time) 13 June 2006, the current operation was preparing to drill a sidetrack hole, primarily to obtain core data from the oil reservoirs.
2. PRODUCTION TEST RESULTS
The Wei-6-12S-1 production testing programme was designed to provide the Joint Venture with the maximum amount of technical data for possible field development rather than for maximum flow rates.
2.1 Lower Sand Package
The first test in the Lower Sand Package had three main aims: to confirm the hydrocarbon type in this 111 metres gross column (35 metres net pay); to determine if a hydrocarbon-water contact is present; and to provide productivity data.
The test perforated 12 metres between 2435.5 metres below rotary table ("mBRT") and 2447.7 mBRT and flowed 35 degrees API oil through various choke sizes, up to a 32/64" choke, at stabilised rates up to 1,725 BOPD.
The test conclusively proved that the hydrocarbon type present is oil. The test did not produce any water, despite being located near the possible oil-water contact, which strongly indicates that oil-water contact is not present in the well. Preliminary pressure analysis confirms this and suggests that the oil-water contact may be more than 20 metres down dip from base of the oil column seen in the well.
2.2 Middle Sand Package
The purpose of the second test was to obtain productivity data from the 65 metres gross oil column (31 metres net pay) encountered.
Specifically the test perforated a total of 28 metres over two zones, 2228.5 mBRT to 2241.5 mBRT and 2201.0 mBRT to 2216.0 mBRT. The test flowed 39 degrees API oil, through various choke sizes up to 48/64 inch, at stabilised rates up to 2,575 BOPD with no associated water production. The test results indicate that the reservoir has good natural productivity.
2.3 Upper Sand Package
The third test aimed to provide productivity data from the lower part of the 71 metres gross oil column (14.5 metres net pay) and to obtain further insight as to how far down dip the oil bearing reservoir may extend.
This test perforated 16 metres between 2054 mBRT and 2070 mBRT and flowed 38 desgrees API oil, through various choke sizes up to 44/64 inch, at stabilised rates up to 1,450 BOPD.
The test results indicate a reasonably productive reservoir. Pressure gradient information suggests that the oil column extends downstructure from the discovery well.
3. NEXT PHASE OF APPRAISAL PROGRAMME
The next phase of appraisal will be the drilling of a sidetrack hole close to the original discovery well in an attempt to core and further delineate the relevant reservoirs. This sidetrack is expected to commence drilling later this week.
Because of the proximity of the sidetrack to the discovery well, the Joint Venture does not expect to make any further Stock Exchange announcements about the progress of drilling until this first sidetrack is finished.
It is anticipated that a second sidetrack well will be drilled after the first sidetrack is finished. This second sidetrack will be designed to intersect the various reservoir sands in a down dip position relative to the discovery well, including the possible downdip development of a small sand section intersected in the lower part of the upper sand package in the discovery well. This sand section was not production tested in the discovery well but oil was recovered during wireline sampling.
Another important phase of appraising the Wei South discovery is the integration of well and seismic data to determine whether or not the various hydrocarbon sands have recognisable seismic signatures. Initial results of this work are encouraging.
The Block 22/12 Joint Venture comprises*:
Roc Oil (China) Company 40% and OperatorHorizon Oil Limited 30%Petsec Energy Ltd 25%Oil Australia Pty Ltd** 5%
*The China National Offshore Oil Company ("CNOOC") is entitled to participate up to a 51% funding equity level in any commercial development within Block 22/12.
** A subsidiary of First Australian Resources
About Petsec Energy Ltd
Petsec Energy Ltd (ASX:PSA) (OTCMKTS:PSJEY) is an independent oil and gas exploration and production company listed on the Australian Stock Exchange. It has operations in the shallow waters of the Gulf of Mexico and state waters of the Louisiana Gulf Coast region of the USA, and exploration activities in the Gulf Coast onshore and bay areas of Texas and Louisiana, USA and Yemen.
![abnnewswire.com]()
Related Companies
Social Media
Share this Article
