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Regal Petroleum achieves sustainable production from SV-58 gas well at Svyrydivske field, Ukraine

Regal Petroleum (AIM: RPT) updated the market on its Ukrainian and Romanian operations, having achieved sustainable production from the SV-58 well at the Svyrydivske gas and condensate field in Ukraine after implementing a customized jet perforation technique to overcome reservoir connectivity challenges within the well, which the company said has “behaved in an unusual manner.”

The well was caused to load up quickly by very high condensate-to-gas ratio from one of the productive sand layers, which impacted the stability of gas flow after instantaneous gas rates of 172,000 cu m/d (cubic metres per day) were obtained and the initial testing programme indicated that sustained production could only be achieved with difficulty.

Average production rates to the facilities at rates of less than 10,000 cu m/d required a periodic cycling scheme and the well was closed in to allow gas pressure to build-up in the wellbore, then opened and flowed until the condensate influx overcame the flowing gas pressure.

Regal said that the pressure build-up behaviour during the test programme indicated a very poor connectivity between the wellbore and reservoir with a phased programme being required to resolve the issue.

The extensive test programme of December 2009 showed that the conventional perforation operations had not worked effectively, leading the company to implement the jet perforation technique.

After the jet perforating field test undertaken in adverse weather conditions, a sustained and stable production flow of 55,920 cu m/d of gas and 10.5 cu m/d of condensate to the production plant has been achieved, marking an improvement over the pre-test flow rates. The operations planned for February are expected to bring the potential T-sand and D-sand production from the MEX-106 well at the Golotvshinska field and potential B24 limestone production from SV-58 and the remaining SV-58 B-sand reservoirs.

The trial jet perforation resulted in a total increase of 560% in inflow performance.

The company now intends to implement the technique from the remaining 75 metres of target reservoir in SV-58 in February, hoping to bring its input to pre-drill estimations.

Current production rates are below the company’s 2009 year end target, standing at 2,072 boepd (barrels of oil equivalent per day), which the company said was caused by delay in establishing production in SV-58 and MEX-106 wells.

A well intervention programme is planned for later this year to access additional reserves that have been tested previously but which are now stranded behind pipe. Further, a series of low-cost wellhead compression projects on existing wells are planned for Q4 2010 to generate additional production.

That, along with incremental production gains from the completion of the new wells SV-61, SV-66, SV-69 and MEX-120, is expected to help Regal to a “significant growth” of field output.

“We now intend to build on our success in the trial by delivering access to the other target reservoirs in SV-58. During the drilling of this well, strong gas influxes were encountered, so we are optimistic that production from SV-58 can meet our pre-drill estimations in due course. We are equally enthusiastic about the potential opportunities to deploy this approach across the entire field, both in future wells and in older wells where it may deliver production improvements,” said Chief Executive of Regal Petroleum David Greer.

The company has also updated the market on its other wells in Ukraine, reporting “significant progress” in removing a mechanical obstruction in the MEX-106 well, which has been producing at a stable rate of 517 bopd (barrels of oil per day), which is similar to the level reported in November 2009.

The SV-61 well has reached a depth of 5,960 metres, having reached the target reservoir interval near the top of the T-sand objective, while the SV-66 well is currently at a depth of 4,548 metres.

In Romania, regal has acquired 72.35 km (kilometres) of 2D seismic profiles from a total planned campaign of 105.4 km, which aims to identify potential drilling locations in the vicinity of the RBN-4 gas discovery made in December 2007.

Shares in the company rose nearly 4% on the update.



Disclosure: The author holds no positions in the company