Touchstone Exploration Inc (LON:TXP) this week released the latest impressive test results from the Cascadura-1ST1 well, in the Ortoire exploration block, which in aggregate has now delivered rates in excess of 10,000 barrels oil equivalent per day (boepd).
Prior testing in February evaluated a lower section, of 162 feet, in the Herrera formation and measured flow rates of up to 5,180 boepd.
Now, the second round of tests took place on a section of 345 feet in the upper part of the Herrera formation. It began on 8 March and achieved a peak flow rate of 5,760 boepd, comprising 29.4mln cubic feet of gas and 865 barrels of natural gas liquids.
Touchstone told investors that the test results support a possible initial production range of 7,750 to 9,700 boepd, including 1,100 to 1,400 barrels of gas liquids, which is significantly ahead of the company’s pre-drill expectations.
In Alaska, 88 Energy Ltd (LON:88E) has updated investors on the drilling operations for the Charlie-1 well, on Alaska’s North Slope. The well spud on 2 March and progress to date has seen the completion of the surface hole down to depth of 3,500 feet, casing will now be set before the resumption of drilling.
The well programme is partnered with Premier Oil PLC (LON:PMO) which is largely funding the venture that aims to test a potentially significant discovery previously unearthed by BP back in the 1990’s.
SDX Energy Plc (LON:SDX) has announced a successful result in the Rabul-3 well, in the West Gharib Concession in Egypt, encountering two reservoirs. The Rabul-3 development well was drilled to a depth of 5,129 feet and encountered roughly 116 feet of net heavy oil pay, across the Yusr and Bakr formations. Both were said to have excellent reservoir quality and average porosity measured 21%.
It will now be completed as a producer later this month with the company expecting an average production rate of 300 barrels oil equivalent per day, which would be at the upper end of expectations for the well.
Explorer Bahamas Petroleum Company PLC (LON:BPC) moved back its estimated timeline for the Perseverance-1 exploration well as a result of supply chain disruption caused by the Covid19 coronavirus pandemic.
Perseverance-1 is now anticipated in late May/early June. In the prior timeline the well was expected to spud in April 2020.
Coronavirus has limited access to project essential supplies and has limited the movement of key project personnel, staff and contractors, the company said. Specifically, it added that the pandemic has created challenges determining a rig mobilisation window, where continuity of 45 to 60 days of operations can be assured.
The company’s licence obligation is to drill the well before the end of the year, and, it has been intending to conduct its well operations outside of ‘hurricane season’ (August – October).
It added that farm-out talks continue with potential new partners notwithstanding the recent decline in oil prices.
The producing field currently yields around 28 barrels of oil per day, and, the agreement sees Union Jack increase its stake to 55%. A planned in-fill drilling programme will aim for a “multi-fold” increase in production volume via “relatively inexpensive” side-tracks.
The company is also acquiring a 15% interest in the adjacent PEDL339 property which hosts the Louth prospect, estimated to hold some 600,000 barrels of oil, plus further prospective resource potential.
Chief executive Graham Swindells said in a statement on Friday that the company is in “a strong position”, with no direct exposure to oil prices, no debt and thanks to a fundraising last summer it had £13.3mln of cash in the bank as of the end of February.
The operator had the right to make this decision under the joint venture agreement, and, now the last date that the operator can start drilling Stanley-4 is 20 June 2020. At the same time, amid oil market turbulence, the company has launched a full review of its operations.
A €30.2mln deal unravelled last week as the firms failed to renegotiate terms after a slump in European gas prices. In addition, cost forecasts rose and Solo’s share price was knocked by Brexit uncertainty.
The deposit is €1mln and Solo said it has agreed that ONE-Dyas will retain €0.23mln for its costs. Solo so far received €0.5mln and a further €0.27mln is due on or before 13 March.
The company’s financial results statement for the twelve months ended 31 December, confirmed that DGOC exited the year with production of around 94,800 barrels oil equivalent per day from its long-lived wells.
Underlying profits (adjusted EBITDA) of US$273mln funded some US$135mln of distributions to shareholders – comprising US$82mln of dividends, 13.2 cents for the whole year and US$53mln of share buybacks.
DGOC noted that its dividends are protected by a hedging programme which see 90% of 2020 production at a floor gas price of US$2.70 per mmbtu and 66% of next year currently covered with a floor of US$2.66 per mmbtu.