UK oil and gas production group IGas Energy (LON:IGAS) said this morning that it was about to finish the latest round of drilling work at its Doe Green field and that indicative flow rates from its DG-3 and DG-4 wells were expected by the end of March.
IGas said that the area was more faulted than anticipated, particularly in the deeper seams at DG-4, which resulted in more time and complexity in achieving longer lateral lengths. However, the company did experience higher levels of gas than it has encountered previously, due to the faulted nature of the seams.
Meanwhile, drilling work at Ince Marshes has been completed and the well there has been suspended as planned. IGas encountered a net coal thickness in total of around 36 feet in multiple seams. This was logged and cored and the logs are currently being interpreted. The company also encountered a very significant shale section of at least 1,000 feet, with gas indications observed across the interval. The shale section encountered was also logged, which apparently helped to identify a number of potentially prospective zones, and these results together with rock samples are also now being analysed.
Overall production from IGas assets continues at an average rate of c2,700 barrels of oil equivalent per day, comprising c2,600bpd of oil with the balance being gas. This is 15% ahead of the forecasts contained in a recent competent persons report by Senergy.
The company’s recent acquisition of Star Energy is still being integrated and a team has been set up to review the combined well stock of more than 215 wells at over 100 sites to consider the viability of wells that are currently shut in and any activity that can be undertaken to enhance production.
Andrew Austin, the chief executive of IGas, said: “We are pleased to announce that we have completed the coal drilling phase at Doe Green and that we have seen strong performance from the production assets following the completion of our acquisition of Star Energy. We are also very encouraged by the shale encountered at Ince Marshes as this exceeds what we expected and we look forward to the results of the interpretation of the logs and samples.”
