Suspected damage to the target formation at Rathlin Energy’s West Newton-B site in East Yorkshire is limiting hydrocarbon flow, two of the partners said this morning.
Reabold Resources executives said in an online interview the damage was probably caused by “an aggressive completion” of the well.
Sachin Oza, co chief executive, said:
“In all likelihood, we ended up causing formation damage which resulted in this particular well location not yielding the flow result that we were expecting.”
He added that the project partners had expected the Kirkham Abbey formation to be low-permeability.
“We felt we had to be quite aggressive in the completion technique we were going to use.
“We actually found a good permeability system in the field.”
Earlier formal statements from Reabold Resources and Union Jack Oil said tests on the WNB-1z well showed signs of reservoir damage in the Kirkham Abbey formation.Union Jack said the suspected damage was “preventing optimum hydrocarbon flow”.
Reabold Resources said: “This is probably preventing more significant flow at this time”.
“The Kirkham Abbey reservoir appears to be sensitive to the drilling and completion fluids. We see clear signs of reservoir damage in near wellbore areas.
“Testing to date has not yet returned all the completion fluids injected into the formation and a measurable flow of hydrocarbons has not yet been achieved.”
WNB1z, a sidetrack, was drilled in November 2020 after the first well, (WNB-1) missed one of the target formations.
In December 2020, Reabold Resources, which has a 56% stake in the West Newton licence, said the sidetrack had “exceeded pre-drill expectations”.
Today, the company said WNB-1z had been suspended with gauges measuring pressure build-up.
Reabold said further testing on WNB-1z could follow the results of other tests on the nearby WNA-2 well.
Union Jack said remedial action on WNB-1z would be informed by the pressure data, WNA-2 results and an independent technical review. It added:
“Following remedial interventions, the WNB-1z well is expected to be suspended as a potential producer”.
At the time of writing, Union Jack shares were down 12% at 24.20p. Reabold Resources were down more than 17% at 0.26p.
The statements also said tests on the WNB-1z well had revealed:
- Gas and liquid hydrocarbons recovered to surface
- Significant hydrocarbon column of approximately 118m
- Natural fractures in the Kirkham Abbey formation
- Good quality gas recovered – 90% methane, 4.5% ethane and no hydrogen sulphide
Stephen Williams, co-chief executive of Reabold, said
“Testing at West Newton continues to provide valuable data to inform how to best develop this extremely significant oil and gas resource. Evidence of permeability and the extensive hydrocarbon column, in addition to the returns of gas and oil to surface, are extremely encouraging.
“Suspected formation damage at the B-1Z well also forms a key input into the development methodology for the West Newton field. We are fortunate in being able to progress the A-2 test whilst we undergo the pressure build up at B-1Z, and look forward to continuing to better understand how to optimally exploit this unique UK oil and gas resource.”
David Bramhill, executive chairman of Union Jack Oil, said his company, which holds 16.665% in West Newton, was “highly encouraged” by the initial test results on WNB-1z.
“Our enthusiasm is borne out by the return of hydrocarbons to surface at this ongoing and early stage testing of the Kirkham Abbey formation, natural fracturing and significant fluid injection rates of 5.7 barrels per minute (8,208 barrels per day).
“Following these promising initial results at the B1z well equipment is currently being mobilised to the A-2 well site for the recommencement of testing.
“The Joint Venture partners are resolved to unlocking West Newton`s inherent value and generating a successful return on capital invested.”
Local people reported yesterday that the workover rig had left West Newton-B. Eye witnesses said it moved to West Newton-A this morning.
Tests on WNA-2 were suspended two years ago after the discovery of oil, in addition to the expected gas. A revised well-test was approved by the Environment Agency. The tests would now restart, today’s statements said.