Alba Mineral Resources: Horse Hill EWT production update

HH-1 is located in licence PEDL137 in which Alba holds an 11.765% effective interest.

The Operator has further advised of the achievement of the following 2018 EWT milestones to date:

• Approximately US$1.1 million gross 2018 HH-1 oil sales achieved to date from the KL3 and Portland (this figure excludes the KL4 oil reservoir, which will be tested shortly).
• 13 920 bbls (2.21 million litres) total KL3 and Portland production as of 0700 14 November.
• 10 248 bbls (1.63 million litres) of 40° API produced solely from the KL3 as of 0700 14 November.
• 15 860 bbls (2.52 million litres) aggregate total oil production from the 2016 and 2018 tests.

Finally, the Operator has provided the following KL3 EWT Update:

• 10 248 bbls of KL3 oil was produced over 30 days of sustained daily natural and pumped flow from an 83 ft perforated interval. The programme included 9 days of pressure build-ups (or ‘shut-ins’) and downhole sampling. Production was achieved via a variety of choke sizes whilst maintaining stable bottom hole pressures. No formation water was returned to surface; however, small intermittent slugs of completion brine were recorded.
• KL3 produced at an initial metered sustained natural flow rate of 771 bpd, with a maximum recorded half hourly rate of 902 bpd. The average sustained daily rate over the full test period was 342 bpd. Prior to the final shut-in period the well was producing oil at a stable bottom hole pressure of around 800 psi.
• Total KL3 gas production to date is 3.5 million ft³ with daily produced amounts through the enclosed flare falling within the Environment Agency's permitted limits and parameters.
• EWT results to date indicate that the KL3 oil pool ‘seen’ by HH-1 is commercially viable.* Consequently, following completion of the KL4 EWT, continued test production of a commingled KL3 and KL4 oil stream is planned.
• Other than at weekends, when planning restrictions apply, over 40 road tankers (of 220 bbls capacity) have exported KL3 crude oil to BP's Hamble oil terminal, with around 500 barrels of stock tank oil remaining at the site for subsequent export. The KL3's Brent quality crude has been sold at prevailing Brent crude oil prices less a small deduction for handling.
• KL4, which flowed at a reported stable dry oil rate of 901 bpd over a 4-hour period in 2016, will be flow tested after completion of the current KL3 pressure build-up.

George Frangeskides, Alba's Executive Chairman, commented: "It is very encouraging to Alba, as a significant stakeholder in the Horse Hill project, to learn that the 2018 EWT's total test production has now reached almost 14 000 bbls, with over 10 000 bbls to date from the single Kimmeridge KL3 horizon. These production figures mark a significant milestone in the history of the Project."

"We now look forward to the forthcoming KL4 EWT programme and the prospect of KL3 and KL4 commingled test production.”

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/16112018/alba-mineral-resources-horse-hill-ewt-production-update/