Garden Hill South (GHS) is an oil and gas accumulation discovered in PL2002-01. It was discovered by Hunt Oil in 1995 with exploration well Port au Port #1 (PAP#1), and covers an area of approximately 11 km2. When initially drilled, the PaP#1 well produced over 2,000 barrels per day. Two sidetracks were subsequently drilled from PAP#1, the second of which (ST#2) produced oil at the rate of 200 barrels per day during drill stem tests. Production tests from GHS, prior to re-entry in January 2007, produced over 22,000 barrels of oil. The oil produced from GHS has been of high quality (51° API).
In January 2007, PDIP re-entered the PAP#1 ST#2 well. Upon re-entry, a series of tests, including a pressure build-up test, were performed to analyse the GHS reservoir in preparation for production. Analyses by independent consultants of the pressure build-up data indicated a minimum connected volume of between 4.5MMstb (4.5 million stock tank barrels) and 7MMstb (7 million stock tank barrels).
Following the pressure build-up test, the well was flowed to gather production data. After stable production of approximately 300 bpd the well flow became erratic. PDIP and its partners decided to shut the well in until a remediation plan could be prepared. A total of approximately 4,315 bbl of oil and 429,000 m3 of gas was produced after re-entry, before the well was temporarily suspended.
In August 2008, PDIP re-entered the PAP#1 well, the main objective being the completion of a horizontal sidetrack (ST#3). During the drilling, which lasted into December 2008, both oil and gas were encountered. PDIP commenced a flow test on the PAP#1-ST#3 well at Garden Hill South on 21st January 2009 and, during the drilling of the well and the subsequent flow test, 6,146 barrels of high quality crude oil (and 3,100 boe of associated gas) were produced. The Board however concluded, from the preliminary results of the flow test, that the well was sub-economic at that time and it was shut in on an extended well test. In November 2009 the well was reopened and initially flowed at 580 to 600 bopd plus associated gas.
The Company has further examined the flow and shut in test data to determine various options for improving the flow rate from the well. The data gained indicates that the well will produce now on an interval basis whereby the well may be flowed then shut-in, allowing it to recharge the in-contact reservoir pressure, before repeating the process. The period between each interval and the expected production is currently not known. The Company also reviewed the potential for re-entering the sidetrack to physically stimulate the well, an option which is thought to provide a solution. As such PDIP signed a farm-in agreement for the PAP#1 well. Under the terms of the agreement, the farm-in partner would gain a 30% interest in the well for a maximum expenditure of C$2.5 million. The expenditure is expected to be used to initially log the well and then conduct a foam/acid fraccing operation which is anticipated to improve the production profile of the well. The original farm-out agreement has been amended to provide the farm-in partner with a 40% interest in the well after completion of the workover as part of an overall regional development plan that incorporates activity on the remainder of PL2002-01 including the drilling of a further well on the lease, the location of which will be decided upon completion of the work-over. The workover programme has commenced and results indicate that, with other components of the programme yet to be implemented, the well is able to currently produce at a sustainable rate of 200bopd.
As stated in Enegi’s Competent Persons Report at the time of the IPO, TRACS International Limited estimated that GHS contained the following unrisked contingent resources:
| Prospect | P90 | P50 | P10 | Mean | |
|---|---|---|---|---|---|
| Garden Hill South | Oil in MMbo | 2.0 | 5.1 | 12.8 | 6.5 |
| (onshore portion) | Gas in Bcf | 3.7 | 9.7 | 24.5 | 12.4 |
A copy of the Competent Persons Report is included in the listing prospectus for Enegi Oil Plc., which can be viewed here.
Areas of operation
Port au Port Peninsula
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