Page 11 - Euroil Week 36 2019

EurOil PROJECTS & COMPANIES EurOil
ADX strikes gas in Romania
ROMANIA
The disovery “substantially” exceeded expectations.
AUSTRALIA-LISTED oil and gas explorer ADX Energy has made an onshore gas discovery in Romania that has “substantially” exceeded its pre-drill expectations.
e Iecea Mica-1 (IM-1) well has identi ed 20bn cubic feet (566mn cubic metres) in best-es- timate contingent resources and is now being readied for production tests, ADX said in a state- ment. Separately, ADX’s UK-based partner Rea- bold Resources noted that the borehole’s primary target had “high-quality” reservoirs, indicating strong production potential.
ADX said it could not deepen the well below 2,407 metres because of high pressure, fluid losses and well bore deterioration. As such, it has decided not to compromise the well’s integrity but to test deeper prospects at a later stage, it said.
ADX said the discovery was worth $40mn, assuming a gas price of $6 per 1,000 cubic feet.
“ e excellent results to date exceed our pre- drill resource expectations for the Iecea Mica-1
well,” ADX chairman Ian Tchacos said.
“We are delighted that the discovery at IM-1 has exceeded expectations and should lead to a highly commercial development in the near future,” Reabold CEO Sachin Oza added. “ is result bodes well for the testing of IM-1 and for
the drilling of IM-2.”
ADX owns a 63% stake in Iecea Mare, in
the Pannonian Basin, while Reabold holds the remaining 37% interest. Iecea Mica-1 is the rst of two appraisal wells the pair plan to drill. e pair also control the larger adjacent Parta explo- ration area.
“We see Romania as a signi cant source of opportunity, and the Parta licence provides Rea- bold with extensive running room for growth and further value creation above and beyond the near-term appraisal programme,” Oza said.
Reabold also operates in California and the UK, while ADX has assets in Italy and Western Australia. ™
Zennor selects SAGE to process Finlaggan gas
UK
Ancala took control of the SAGE gas system in 2017, and has raised contracted volumes to 7 bcm.
PRIVATE equity-backed Zennor Petroleum has handed a life-of- eld contract to UK oil and gas infrastructure operator Ancala Mid- stream to process gas from the North Sea’s Fin- laggan eld.
e gas will be processed through Ancala’s Scottish Area Gas Evacuation (SAGE) terminal at St Fergus, the two companies said on Septem- ber 5. e multi-million-pound contract will ensure the pipeline system remains a “compet- itive option” for UK and Norwegian develop- ments to the mid-2030s, Ancala said. SAGE had earlier seen a decline in use as former major elds such as Britannia wound down production.
Zennor completed the drilling and testing of development wells earlier this year at Finlaggan, preparing the field for commercial launch in the fourth quarter of 2020. It said in April it had received “very encouraging results” from these wells.
e North Sea player owns a 100% stake in Finlaggan, covering Blocks 21/05c and 21/05d. The deposit holds an estimated 30mn bar- rels of oil equivalent (boe) in recoverable gas
condensate. It is set to be tied back to Cono- coPhillips’ Britannia platform, and Zennor aims to install subsea systems at the site this summer.
Zennor’s managing director, Martin Row, said he greatly appreciated “the support from the Ancala Midstream team in putting the SAGE processing agreement in place for the Finlaggan field, which is a key element of our growing portfolio.”
“We are delighted to have secured this long- term contract to provide processing services to the Finlaggan eld,” Ancala CEO Jim Halliday said. “We have worked closely with Zennor throughout, creating an o er that has facilitated the optimum development of the eld and deliv- ery of the Oil & Gas Authority’s (OGA) objec- tive of maximising economic recovery from the North Sea.”
Ancala acquired the SAGE system in 2017, and has since managed to raise contracted volumes of gas by 250bn cubic feet (7bn cubic metres), it said. Besides the Finlaggan contract, it is also sourcing gas from other developments in the Beryl area.™
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