LONDON – MX Oil and its partners have paid the $9.8 million renewal fee for the OML 113 license offshore Nigeria, securing a further 20-year term.
Oil production from the Aje-4 and Aje-5 wells remain above expectations and has led the partners to approach RPS Group on assessing the viability of additional development of theAje field.
Since last October the consultant has been examining the potential development activity associated with the additional upside oil resources.
Modeling to date has confirmed the case for potential for new oil wells in both the Turonian and Cenomanian.
Based on RPS’s findings the partners will decide on further drilling later this year under a Phase 2 program, with a view to a subsequent full-scale development.
Initial development drilling – probably one new well in the Cenomanian reservoir and one horizontal side track development well in the Turonian reservoir – could hoist peak oil production rates of 8,000-12,000 b/d, while the full development drilling could increase output to 20,000 b/d and 100 MMcf/d of gas.
However, the full development will depend on the availability of project finance.