Mitsui to spend $150 million on Enfield wells

Offshore staff

TOKYO -- Mitsui & Co. Ltd. subsidiary Mitsui E&P Australia Pty. Ltd. has approved its joint venture budget for the Enfield field offshore Australia, operated by Woodside Energy Ltd.

The 2007 program includes $390 million to drill additional wells and to workover existing wells to increase production from the field. With 40% interest in the field, Mitsui's share of the program costs is $150 million.

Both companies have placed the improvement of the Enfield oil project as a top priority and will make continuous effort to improve the productivity of its oil production, Mitsui says. Further well workover in 2008 is also being considered.

The Enfield field began production on July 24, 2006, two months ahead of schedule and achieved production of 74,000 b/d of oil in September. In October, ENA-03, one of the major production wells, was shut in due to unexpected sand production and early water breakthrough. Recent gross oil production has been a little over 40,000 b/d from four of the five production wells.

The JV re-evaluated the geological reservoir model and updated it in line with the production history. With the viability of a well workover program of four to seven wells confirmed, the JV has to increase spending to improve production rates.

Following the completion of the work-over, the average production rate for 2007 is expected to be 45,000-55,000 b/d.

2/21/2007