EnCore Oil plc (LSE: EO.) is pleased to announce the result of testing operations on the Cladhan appraisal well, located in UK Northern North Sea Block 210/29a.
The well, 210/29a-4Z flowed at a stable rate of circa 5,903 bopd (barrels of oil per day) for over 13 hours through a 28/64 inch choke with a final wellhead pressure of 1,874 psi (pounds per square inch). The flow rate was restricted by the capacity of surface facilities and due to the small diameter of the testing tools and the 3.5 inch tubing used while testing. The Operator, Sterling Resources, has indicated that with larger 4.5 inch completion tubing, they estimate that the well is capable of producing over 15,000 bopd. The testing confirmed light oil with a gravity of approximately 34 degrees API and a gas oil ratio (GOR) of 245 scf/bbl.
After completing the well test operations, the well will be plugged back and a further side-track downdip and to the southeast of the original discovery well will be drilled to better understand the location of the oil water contact (OWC) in the field. The side-track operation will commence later this week and is expected to take approximately two weeks subject to weather and operational delays.
Alan Booth, EnCore's Chief Executive Officer, commented:
“The quality and deliverability of the Cladhan reservoir has been further confirmed by this excellent test result. Until we can establish the depth of the OWC, it will be difficult to accurately define the size of the Cladhan accumulation although we believe that it is very likely that a commercial accumulation at Cladhan has already been established. We look forward to the results of the side-track well which we hope will enable us to define the location of the OWC.
“Aside from the operations at Cladhan, at Catcher in UKCS Central North Sea Block 28/9, we are finalising the well locations with our partners following the acquisition of site surveys which are now almost complete. The necessary technical, drilling and safety evaluations for the use of the Transocean Galaxy II heavy duty jack-up rig are continuing and, subject to the necessary regulatory approvals of these, we hope to return to drilling at Catcher in late September / early October for a programme of between two and four wells. The turnkey contract with ADTI for use of the Galaxy II rig is being negotiated and it should be ready for signature once the necessary approvals have been received. Until such time as the contract is signed, exact timing of the drilling programme cannot be guaranteed.”
Peter Williams B.Sc. (Hons.) in Physics and EnCore’s Group Technical Manager, who has over 35 years' engineering experience in the oil exploration and production industry, has reviewed and approved the technical information contained in this announcement.
For further information, please contact:
EnCore Oil plc
Alan Booth, Chief Executive Officer
+44 (0)20 7224 4546
Eugene Whyms, Chief Financial Officer
Yvonne Fraser, Investor Relations Manager
+44 (0)7957 241 408
Westhouse Securities Limited
+44 (0) 20 7601 6100