Offshore staff
LONDON – IOG and partner CalEnergy Resources have sanctioned the Blythe H2 development well as the next phase of their Saturn Banks drilling program in the UK southern North Sea.
H2 will target Blythe's central high and will not require hydraulic stimulation (as has been the case at the Southwark Field), Blythe being a more permeable reservoir.
If successful, H2 could deliver higher gas production rates, initially in the 30 MMcf/d to 40 MMcf/d range after displacement of liquids in the Saturn Banks Pipeline to the Bacton reception terminal.
Further drilling on Blythe would also mean lower volumes of liquid arrivals at Bacton, and increase ultimate recovery of the field’s gas, IOG said. Subject to regulatory approvals, H2 could spud in March and take about three months to drill, complete and hook up.
Net cost to the company could be £13 million ($15.65 million), including associated platform modifications, with a potential payback of less than three months.
Production from the H1 well remains steady with more than 90% uptime so far this year, with gross gas rates in the range 15 MMcf/d to 20 MMcf/d range. The fluctuation is caused by onshore liquids letdown cycles, and associated condensate and water production.
Southwark A2 has been suspended following disappointing gas flow rates and a review of operations is underway. Southwark A1, which was suspended last October 2022 after fluid losses in the top-hole section, is undergoing reentry to safely suspend the well ahead of the rig transferring to the Blythe platform.
IOG currently estimates that A1 would take five months to drill, complete and hook up, at a net cost of £16 million ($19.27 million). The company will consider further remediation options for A2 and optimization of plans for the nearby Kelham North/Central and Goddard appraisal wells.
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