Friday, August 22, 2014 3:55:28 AM
Workovers in 3Q14 to increase Polvo Production Volume
From the Conference Call:
"On the revenue side this quarter we had a very good oil production at Polvo and I would like to inform you that we are already preparing for a well work over aiming to increase output."
Polvo Upside Potential
"As you can see in yellow, we see the ring fence outline of Polvo with around a 140 km² of acreage in this HRT asset.
Inside the yellow area you can see in blue the outline of the limestone reservoirs in the producing zone. In brown Guarajuba sandstones and in shaded green on the left presalt Coquina is not in production. The black dot close to the center shows the location of Polvo A platform and we can see the producing wells, as you know we have 10 producing wells and one injection well in Polvo field."
"Processing units are all in the FPSO and it is important to remind you that all of our wells have dry completion in the platform equipped with its own drilling rig.
Today about 90% of Polvo production comes from sandstones and only 10% coming from the limestone reservoirs. What this map tries to show you is that there a number of upsides in Polvo field, which will be tapped into by HRT in the coming months and years hopefully.
First workover in 3Q14, First develoment well in 4Q14/1Q15
The technical group from HRT America is reprocessing the 3D seismic data of the field and we need to enhance the characteristics of the producing reservoirs and therefore select the best sites for new drilling in the fields.
At the same time we have people. We have technical groups from headquarters in the United States studying the wells that have already been drilled to identify wells ready for work overs. So as to put new wells into production without needing to drill new wells, but finishing the completion of the existing well.
The first work over of this type is scheduled for the third quarter while the first drilling of new production development wells in Polvo is expected by year end/ beginning of 2015.
36 development wells, only 10 producing so far
During my presentation I said that Polvo, we drilled almost 50 wells, exploratory wells and then 36 development wells and today there are only 10 producing wells and one water injection well.
And once we analyzed the 36 wells in the field we were able to identify some possibilities of simple work overs that may result in an output increase in the field but because these are lower cost work overs we are putting priority in the study of these potential workovers.
The second point is that when it comes to drilling the development wells that it was already estimated and also to use the non-development deposit, these reservoirs are about six kilometers away from the platform and in order to drill these wells with the rig that we have already in place in the platform we would need to make some reviews and adaptations.
We have to replace some basic equipment like top drive and floating devices, which takes about six months until the setup is completed. So the drilling process will only be initiated by November or December of this year.
So our current plan is that in the short run we will make one or two workovers aiming at increasing oil production and by the end of the year, we would start the drilling process because by then the rig will be totally prepared and we will have all of the necessary licenses to conduct the drilling."
Next shipment of ~550,000 boe scheduled for the 2nd half of September
"A higher brent price coupled with a lower negotiated discount allowed for a 6.8% increase in prices in Q2 2014 when compared to Q1. Therefore even though the shipment completed in June 14 was 5% smaller when compared to some of the shipment in Q1 revenue in dollar terms was 1.2% higher.
Next shipment from HRT is scheduled for the second half of September for an originally planned amount of 550,000 barrels. HRT has a commercialization agreement with Glencore which since the second shipment has been in charge of identifying and negotiating prices with end consumers."
GLA
From the Conference Call:
"On the revenue side this quarter we had a very good oil production at Polvo and I would like to inform you that we are already preparing for a well work over aiming to increase output."
Polvo Upside Potential
"As you can see in yellow, we see the ring fence outline of Polvo with around a 140 km² of acreage in this HRT asset.
Inside the yellow area you can see in blue the outline of the limestone reservoirs in the producing zone. In brown Guarajuba sandstones and in shaded green on the left presalt Coquina is not in production. The black dot close to the center shows the location of Polvo A platform and we can see the producing wells, as you know we have 10 producing wells and one injection well in Polvo field."
"Processing units are all in the FPSO and it is important to remind you that all of our wells have dry completion in the platform equipped with its own drilling rig.
Today about 90% of Polvo production comes from sandstones and only 10% coming from the limestone reservoirs. What this map tries to show you is that there a number of upsides in Polvo field, which will be tapped into by HRT in the coming months and years hopefully.
First workover in 3Q14, First develoment well in 4Q14/1Q15
The technical group from HRT America is reprocessing the 3D seismic data of the field and we need to enhance the characteristics of the producing reservoirs and therefore select the best sites for new drilling in the fields.
At the same time we have people. We have technical groups from headquarters in the United States studying the wells that have already been drilled to identify wells ready for work overs. So as to put new wells into production without needing to drill new wells, but finishing the completion of the existing well.
The first work over of this type is scheduled for the third quarter while the first drilling of new production development wells in Polvo is expected by year end/ beginning of 2015.
36 development wells, only 10 producing so far
During my presentation I said that Polvo, we drilled almost 50 wells, exploratory wells and then 36 development wells and today there are only 10 producing wells and one water injection well.
And once we analyzed the 36 wells in the field we were able to identify some possibilities of simple work overs that may result in an output increase in the field but because these are lower cost work overs we are putting priority in the study of these potential workovers.
The second point is that when it comes to drilling the development wells that it was already estimated and also to use the non-development deposit, these reservoirs are about six kilometers away from the platform and in order to drill these wells with the rig that we have already in place in the platform we would need to make some reviews and adaptations.
We have to replace some basic equipment like top drive and floating devices, which takes about six months until the setup is completed. So the drilling process will only be initiated by November or December of this year.
So our current plan is that in the short run we will make one or two workovers aiming at increasing oil production and by the end of the year, we would start the drilling process because by then the rig will be totally prepared and we will have all of the necessary licenses to conduct the drilling."
Next shipment of ~550,000 boe scheduled for the 2nd half of September
"A higher brent price coupled with a lower negotiated discount allowed for a 6.8% increase in prices in Q2 2014 when compared to Q1. Therefore even though the shipment completed in June 14 was 5% smaller when compared to some of the shipment in Q1 revenue in dollar terms was 1.2% higher.
Next shipment from HRT is scheduled for the second half of September for an originally planned amount of 550,000 barrels. HRT has a commercialization agreement with Glencore which since the second shipment has been in charge of identifying and negotiating prices with end consumers."
GLA
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