Premier Oil Plc (PMO), a London-based energy explorer operating from the U.K. to Southeast Asia, said production from its Huntington oilfield in the North Sea will exceed forecasts by at least 20 percent.
Three of four wells have already flowed at 10,000 barrels a day each, beating a forecast for the entire field of 25,000 barrels a day, Chief Financial Officer Tony Durrant said in an interview in London. Premier and partner EON SE will start output this month after “successful” development drilling.
The production prospects for Huntingdon mark a turnaround in its fortunes, after delays at the field and at the North Sea Rochelle deposit forced Premier to cut its 2013 output forecast in November. The Huntington partners also faced setbacks asSevan Marine ASA (SEVAN), hired to upgrade the floating production vessel, sold the unit to avoid bankruptcy.
Premier will assess the initial performance of the wells before making a decision on any further upgrade to increase capacity, according to Chief Executive Officer Simon Lockett.
“There is chat and talk about debottlenecking,” he said in an interview, referring to a capacity expansion. “But I’d like to see these wells as they perform first.”
Premier Oil advanced by 2.4 percent to 394.2 pence in London trading, the biggest gain in a month.
Huntington also holds natural gas. Iona Energy Inc. (INA), which bought a stake in the project from Carrizo Oil & Gas Ltd., said last month the deposit will pump 27 million cubic feet of gas a day. Norwegian Energy Co. ASA is also a partner in the project.
I think we/here are underestimating the significance of these 3 wells high flow rates as it pertains to resevoir size and the importance of captcam`s 3-7-13 post... It only makes sense that they will flow all 4 wells at equal rates, if they are equal distance down to the owc(avoid the ice cream cones) given water support from injectors..and it only makes sense that as the premier ceo stated, he wants a longer look at well performance before implementing any such debottling schemes... they will continue to study it and prolly state just that ...
I also believe that we/here MAY be overstating decline rates, as this is NOT tight oil and should prolly react well to water-support...
Peeps here should really re-read CAPTCAM`s post allowable reserves/recovery rates(50% forties with injectors historically)) stated primary vs. secondary... glt all.