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Yaounde, Cameroon Africa(Cameroon News) – The share prices of Sterling Resources plummet after ‘disappointing’ Kurdistan well results.
Sterling Resources’ shares took a nose dive after the oil company announced ‘disappointing’ results from a flow test on the Sangaw North-1 well, in the Kurdistan autonomous region of Iraq.
Sterling (LON:SEY) flow test has been finished across the open hole section of the Sangaw North-1 well between 3,338 metres and 4,190 metres. This interval comprises of target horizons in the Jurassic Mus and Butmah formations and the Triassic Kurra Chine formation. The well flowed at a stabilised rate of approximately 4.6 million standard cubic feet of gas and 7,280 barrels of formation water per day during a 12-hour flow period through a 1.5-inch choke with a wellhead pressure of 470 pounds per square inch. Approximately 74% of the produced gas was hydrocarbon gas with the remainder comprising 24% hydrogen sulphide and 2% carbon dioxide.
A wireline logging operation was tried out to assess the contribution from individual zones inside the open hole section but did not work out as planned due to mechanical problems within the machinery that was to be used for flow testing. No more flow testing is proposed in the open hole section of the well and this section is being cordoned with cement plugs.
CEO Angus MacAskill said: “We are disappointed that the open hole flow test has not demonstrated commercial hydrocarbon flow rates within the deeper horizons of the Sangaw North-1 well.The data acquired during this test will be integrated with all the other data acquired in well operations to determine the potential of these horizons.”
The share prices of Faroe Petroleum (LON:FPM) dipped sharply after it announced that the Lagavulin well will require to be cordoned.
Faroe says drilling went on to a target depth on the Lagavulin exploration well (Faroe 10%), operated by Chevron, to the west of the Shetland Islands.Well 217/15-1z, on the Lagavulin prospect was spudded in October 2010 and drilled in 1,567 metres water depth. Total depth was reached on 10 June.
The presence of hydrocarbons and a working petroleum system have been determined, however no workable reservoir system was determined at this location and the well will be filled up and cordoned. The well has been subject to a lot of tests for compiling information and detailed analysis is still ongoing to have a detailed look at the test results. The well was drilled with the Stena Carron drillship.
The expected momentum of progress could not be achieved, primarily due to a number of operational and technical hurdles, mostly owing to unfavorable climate and variable drilling formation. Owing to incessant delays, the cost of this well turned out to cross the estimated budget.
Shares in Ascent Resources (LON:AST) increased after it successfully finished the drilling of the Pg-11A well in the Petiaovci project in Slovenia. Initial results look quite promising and have indicated the presence of high quality gas and well logs point at the discovery of approximately 114m of new net additional reservoir in the deeper Miocene. The drilling rig is now being moved over to drill the second redevelopment well, Pg-10.
Meanwhile, a workover rig will now be set up for a completion testing programme on Pg-11A, directed to optimize the production completions for Pg-11A, Pg-10 and other future redevelopment wells.
A surge in share prices was also registered by Victoria Oil & Gas (LON:VOG) after it started work on a contract with a Cameroon civil engineering contractor, Austin Maritime, for the site civil engineering operations and the pipeline trenching, jointing and installation at Douala. The contractor started work on 31 May and its offices, containers and equipment have been taken to site where excavation has begun on 11 June. Victoria Oil & Gas has also flagged off horizontal drilling and high density polyethylene pipe, jointing experts and a pipeline engineer from the UK.
