Oilexco awards Brenda drill contract to Transocean
Oilexco Inc (TSX-V:OIL)
Shares Issued 108,505,684
Last Close 10/5/2004 $4.30
Wednesday October 06 2004 - News Release
Mr. Arthur Millholland reports
OILEXCO AWARDS ADDITIONAL UK NORTH SEA DRILLING TO TRANSOCEAN
Oilexco Inc. subsidiary, Oilexco North Sea Ltd., has awarded Transocean a one-year firm contract for the provision of the semi-submersible drilling unit Sedco 712 commencing on or about March 1, 2005. The Sedco 712 will be used on Oilexco's 2005/2006 development and appraisal work program centred on Oilexco's Brenda oil accumulation in blocks 15/25b and 15/25e, located in the Outer Moray Firth area of the central United Kingdom North Sea.
The Sedco 712 is ideally suited for Oilexco's development and appraisal program; consisting of infill drilling, completions and installation of subsea trees. The drilling unit, currently stacked in Invergordon, Scotland, had been working on development projects for a major multinational integrated oil company for several years until November of last year. Transocean has indicated the Sedco 712 will require 4.5 months of premobilization maintenance and refitting which will commence in November.
Oilexco operates in the United Kingdom North Sea through its wholly owned subsidiary Oilexco North Sea Limited. Oilexco's current focus in the United Kingdom North Sea is on block 15/25b, a 20th round award, and block 15/25e, an August, 2004, out-of-round award, where it holds a 100-per-cent working interest. Blocks 15/25b and 15/25e are located in the Outer Moray Firth of the United Kingdom Central North Sea, 120 kilometres northeast of Aberdeen.
Oilexco's block 15/25 appraisal program is designed to define the limits and edges of the Brenda Paleocene Forties sand oil accumulation intersected by the well 15/25b-3 in 1990 and confirmed by the Oilexco 15/25b-6 appraisal well in January, 2004. To date, Oilexco has drilled five wells and eight wellbores inclusive of sidetracks. Six of the wellbores encountered oil, four of these wellbores: 15/25b-6, 15/25b-8, 15/25b-9Y and 15/25b-10, were drill stem tested through perforations, flowing 40-degree API oil at rates of 2,980 barrels per day, 4,785 barrels per day, 2,648 barrels per day and 3,351 barrels per day respectively, on restrictive chokes at reservoir sand face pressure drawdowns of less than 10 per cent.
Currently, drilling operations are being conducted on the Brenda appraisal well, 15/25e-11, the first well of a three-well cluster (15/25e-11, 15/25e-11Z and 15/25e-11Y) using the Transocean semi-submersible drilling unit John Shaw. After completion of operations on this well cluster, drilling operations will immediately continue on two additional back-to-back well clusters. Final completion of this phase of the Brenda appraisal program is expected to occur in early December.
© 2004 Canjex Publishing Ltd.
