EDINBURGH, UK – Although Cairn Energy reported “encouraging” initial results from its latest appraisal well on the SNE field offshore Senegal, VR-1, the deeper carbonate exploration targets encountered are not currently viewed as commercial.
The operator said the VR-1 appraisal well encountered the targeted lower (500 series) reservoirs within the oil column as anticipated, confirming the reservoir presence, fluid contacts, and fluid quality in-line with the results from the previous wells. Also, it said that preliminary analysis indicated the lower (500 series) reservoir quality is better and slightly thicker than previously encountered.
The exploration target was likely a disappointment, however. Cairn said it encountered the deeper carbonate exploration targets as expected; although hydrocarbons were indicated at the base of the well, they were "in tight formation that is not currently viewed as commercial."
A significant amount of new stratigraphic and log data has been recorded which the company said will be incorporated into the regional geological model
“The appraisal results from VR-1 are very encouraging, as the well is a significant step-out, some 5 km (3.1 mi) west from the line ofwells drilled to date, including the SNE-1 discovery. The results will be useful for the planning of the first phase of development – the lower 500 series reservoirs are the better connected, more tabular, highly productive sands, where water-flooding should yield recovery factors of 30% or more.
“The well result confirms the predictability of the mapped reservoir over a wide area giving confidence to the reservoir engineering models. A resource update will be provided later this year following completion of the appraisal program, however VR-1 has confirmed the 1C proven resources for the field,” the company said in a statement.
The VR-1 is being P&A’d and theStena DrillMAX drill ship is moving to soon begin operations on the SNE-6 appraisal and interference test well, around 2 km (1 mi) to the south of the SNE-1 discovery well.
Cairn Energy Chief Executive Simon Thomson said that “VR-1 is the sixth successful appraisal well on the SNE field and has encountered some of the best quality reservoirs found to date.”
Similarly, partnerFAR recently provided an update on VR-1 at the end of March, noting that the well intersected a 97-m (318-ft) gross oil column with greater than expected net pay and the thickest net pay of all appraisal wells to date on the field.