Cirrus Energy Corp. has announced an operational update regarding ongoing activities in its wholly owned subsidiary, Cirrus Energy Nederland BV in The Netherlands.
L8-D field (Cirrus 25.5%, operator)
Platform refurbishment was completed in November 2009, which has subsequently allowed for continuous, uninterrupted production from the L11b-A06 well. During this period, production performance has steadily declined and is currently approximately 12 million ft3/d gross. Whilst high initial decline rates were expected, performance to date has been under expectation for reasons that are currently not understood. Further data gathering on the well will be undertaken to assist in the evaluation of reservoir performance and to determine the potential for remedial intervention.
L8-D field drilling operations; L11b-A07 well (Cirrus 25.5%, operator)
Sidetrack activities on the A07 well commenced on 30 December 2009 and a new hole was drilled from 1270 - 2066 m. Unfortunately, it has proved impossible to run casing in this new hole and drilling operations on the A07 well have been suspended. The Noble Lynda Bossler drilling rig will shortly be released at which time it will be off contract. Total gross costs expended on the A07 well are estimated at € 35.0 million (€ 8.9 million or approximately C$ 13.8 million net to Cirrus).
M7-A Field (Cirrus 42.75%, operator)
Production performance of both the M7-A facilities and the M7-A01 well to date has been excellent. Current production is stable at 23.5 million ft3/d (gross) with a flowing wellhead pressure of 3915 psig. Production is currently limited by capacity constraints at the L9-FF processing platform although additional throughput capacity is being sought.
According to Cirrus’ President, David Taylor, ‘Suspension of drilling operations at the A07 well is clearly a disappointment. Rather than continue with a further sidetrack attempt, however, we feel the most prudent course of action is to temporarily suspend drilling activities, fully evaluate the operational issues that were encountered and re-design the drilling programme before returning to progress the A07 well. In addition, we need to understand the reasons for the production decline of the A06 well to assist in the optimisation of the completion design of future wells on the field.
We expect and have an option to take the Noble Lynda Bossler rig back on contract in Q2 2010 at a rig rate of US$ 89 500/d. To allow sufficient time to evaluate and to progress the planning for the redesign of the A07 well, it is likely that the first well to be drilled in the 2010 programme will be the M1-Delta exploration prospect prior to return to the L8-D field. Our 2010 drilling programme is expected to include a total of four to five wells for which Cirrus is fully financed.’