NR-Dec 15/04
Oilexco 12th Brenda well flows 3,139 bbl/d
2004-12-15 09:01 ET - News Release
Mr. Arthur Millholland reports
OILEXCO TESTS 3,139 BBL/D FROM 15/25B-12Y AT ITS "BRENDA" OIL FIND LOCATED IN THE UK CENTRAL NORTH SEA
Oilexco Inc.'s 100-per-cent-owned well 15/25b-12Y, the 12th appraisal well inclusive of sidetracks at its Brenda oil find located in the United Kingdom Central North Sea, has flow tested 3,139 barrels per day of 39-degree oil from the Paleocene Forties sand during production testing operations. The oil flow was through a 36/64-inch choke at 496-pound-per-square-inch flowing wellhead pressure from 66 feet of perforations. The well was flowed on a restricted choke to minimize pressure drawdown across the perforations, due to poor cement integrity between the casing and the reservoir section.
The 15/25b-12Y well is the 12th appraisal wellbore to the Brenda oil find, originally made in 1990 by the well 15/25b-3 located in the United Kingdom Central North Sea. It is located 2.5 kilometres south-southeast of Oilexco's first Brenda appraisal well 15/25b-6, which was completed in January of this year.
To date, Oilexco has drilled six appraisal wells at Brenda, 12 wellbores inclusive of side tracks, 11 of which have intersected oil, five of which have been production tested. The well 15/25b-6, the first well drilled by Oilexco tested 2,980 barrels per day of 40 degrees oil through a 40/64-inch choke under stable flowing conditions from the Forties sandstone in late January. This well was followed by the successfully tested wells 15/25b-8 and 15/25b-9Y and 15/25b-10, which flow tested 4,785 barrels per day, 2,685 barrels per day and 3,351 barrels per day respectively.
The 15/25b-12Y well is the last wellbore of Oilexco's Brenda appraisal drilling program on licence P1042 and P1157 (100-per-cent working interest), block's 15/25b and 15/25e in the Outer Moray Firth, targeting oil in the Paleocene Forties sandstone. These wells, and the two wells drilled at Sheryl, have combined to make Oilexco the most active operator of exploration/appraisal wells in the United Kingdom Sea for 2004.
Future operations at Brenda next year will focus on the development of the Brenda East and Brenda West Paleocene Forties sand oil accumulations. Oilexco will present a draft development plan in late January to the United Kingdom Department of Trade and Industry for the development of these areas. Oilexco is currently evaluating four production scenarios for Brenda, but is focusing on a tie-back to the Balmoral floating production facility, eight kilometres to the northeast, in which Oilexco recently acquired a 7.91-per-cent equity interest. Oilexco's production engineering effort is currently focused on a design concept for a maximum initial production rate of 35,000 barrels of oil per day from Brenda. First oil is targeted for the fourth quarter of 2005 to first quarter of 2006.
Oilexco will resume drilling in the region of the Brenda oil accumulation in March of next year using the Transocean semi-submersible Sedco 712, which is under contract to the company for one year. Oilexco has identified a number of Paleocene oil prospects similar to Brenda, for pursuit in the area on its own acreage, and on acreage held by third parties. Farm-in arrangements are currently in process on a number of these third party opportunities.
OTG
