Independent Oil and Gas plc ("IOG" or the “Company”), the development and production focused Oil and Gas Company, announces the initial results from its first operated appraisal well on the Skipper oil discovery which lies in Block 9/21a in licence P1609 in the Northern North Sea, of which IOG is 100% owner and operator. Highlights:
- Although the oil is moving in the reservoir, the first sample results indicate that the oil is approximately 11° API and has a significantly higher viscosity than expected.
- These measurements do not align with our observations and therefore the remaining samples need to be reviewed and tested. Next steps will then be Reservoir modelling to consider potential development options. Determining commerciality may therefore take several months.
- The quality of the sands, although not cored, suggest permeabilities in excess of 10 Darcies, significantly better than previously assumed.
- As the crest of the Skipper reservoir in the appraisal well was found to be 44ft shallower than prognosed, management’s estimate of the most likely oil in place has increased from 136.5 million barrels (“MMBbls”) to 142.6 MMBbls.
Mark Routh, CEO of IOG commented:
"The analysis of the oil retrieved from the appraisal well indicates that Skipper is a heavy oil discovery with similar gravity to other nearby heavy oil fields. We have observed that the oil moves in the reservoir and is mobile at surface at ambient conditions. The initial oil analysis results are incompatible with our observations, therefore we are now reviewing our strategy to establish the commerciality of Skipper. In addition, we have an increased oil in place, higher observed reservoir permeabilities and an increased reservoir height from the crest to the oil water contact.
Drilling our first well as operator was a very important step for IOG and we now have an excellent portfolio of assets, comprising of one-third oil and two-thirds gas. This is subject to completion of the Vulcan Satellite fields acquisition, which is expected in short order." Well Results
The Skipper appraisal well was successfully drilled to a total vertical depth of 5,578ft in August 2016, with no safety incidents and achieved its primary objective of retrieving oil samples from the Skipper reservoir in order to optimise the Skipper field development plan.
The crest of the Skipper reservoir in the appraisal well was found to be 44ft shallower than prognosed. As a result, management’s estimate of the most likely oil in place has increased from 136.5 million barrels (“MMBbls”) in the 2013 Competent Persons Report to 142.6 MMBbls. An increased distance between the crest of the reservoir and the Oil Water Contact in any development will improve the likely oil recovery by delaying the onset of water breakthrough.
The quality of the sands, although not cored, suggested permeabilities in excess of 10 Darcies, which is significantly better than previously assumed.
The initial licence commitment on P1609, to drill a well into the Maureen formation to a minimum depth of 1,700m (5,578ft) has now been fulfilled and the licence will now proceed into the second term.
For more information, please visit: http://www.independentoilandgas.comFor additional information on this project, please visit our Projects OGP database