Business
Chinguetti Operations Update
Chinguetti Operations Update.
About this update from Afentra Plc
[{"type":"text","content":"\n Sterling Energy PLC\n15 May 2006\n\n\n15 MAY 2006\n\n\n STERLING ENERGY PLC\n ('Sterling' or the 'Company')\n\n CHINGUETTI OIL FIELD PRODUCTION UPDATE\n\n\nSterling Energy, the AIM listed (symbol: SEY) independent oil & gas exploration\nand production company, note the announcement made earlier today by Hardman\nResources Limited, reproduced below.\n\nMr Harry Wilson, Chief Executive of Sterling, commenting on the Hardman\nannouncement said:\n\n'Some initial fluctuations in production are always to be expected as reservoir\nmanagement is optimised. The operational and technical issues are being\naddressed.\n\n'The reserve estimates are of course unaffected and given the strength of the\noil price, Sterling's realised cash flow continues in line with the Board's\nprojections.'\n\n\nThe Hardman announcement:\n\nHardman Resources Limited ('Hardman') provides the following update in respect\nof the Woodside operated Chinguetti oil field, offshore Mauritania.\n\nAs Hardman has previously announced, production from the field averaged 66 mbopd\nfor the month of March and 53 mbopd for April 2006. Production for the period\n1May to 10 May 2006 has averaged 45 mbopd.\n\nThe Operator has reported that the principal reasons for the lower production\nare the minimal contribution from the two production wells in the northern part\nof the field and gas and water management issues. The failure last week of a gas\ncompressor onboard the FPSO, Berge Helene, will further delay the commissioning\nof gas re-injection to the Banda field and therefore resolution of facilities\ngas handling issues, as well as the availability of gas lift to support\nproduction.\n\nProduction from Chinguetti is not expected to increase significantly from the\npresent level until well intervention and/or additional drilling takes place.\nSuch remedial actions are currently anticipated by end of the third quarter or\nbeginning of the fourth quarter 2006. Optimally configured wells or sidetracks\nshould add potential of at least 10 mbopd per well in the southern sector of the\nfield and 5-10 mbopd in the northern sector. Plans for even earlier\nintervention, including sourcing additional completion equipment, are currently\nbeing evaluated though would have the effect of delaying the commencement of the\n2006 Mauritanian exploration campaign.\n\nThe current producti...