MX Oil PLC Assessment of the Turonian Development Potential (7838R)
19 June 2018 - 4:00PM
UK Regulatory
TIDMMXO
RNS Number : 7838R
MX Oil PLC
19 June 2018
19 June 2018
MX Oil / Ticker: MXO / Index: AIM / Sector: Oil & Gas
MX Oil plc ("MX Oil" or the 'Company')
Assessment of the Turonian Development Potential
MX Oil plc, an oil and gas investing company quoted on AIM, is
pleased to provide a further update with regard to OML 113, the
offshore licence in Nigeria, in which it has an investment. The Aje
Field within the OML 113 licence area commenced production in 2016
and, on 1 May 2018, the Company announced the results from the
updated Competent Persons Report ("CPR") based on the production
data that had been generated to date.
Further work has now been carried out using the production data
from both Aje-4 and Aje-5 to estimate the potential for an
integrated oil and gas development of the Aje Field. As a result of
the internal estimates, the licence partners, including MX Oil, are
now working on a simulation study to assess the potential for new
oil wells in both the Turonian and Cenomanian.
The Aje-4 well completed on the Cenomanian currently produces
1,500 - 1,700 bopd. The production performance extrapolation of
Aje-4 suggests that the connected oil volume to that well is
significantly greater than currently mapped, suggesting the
possibility of drilling a further well to the east of Aje-4, most
likely in the previously planned Aje-6 location.
The Aje-5 sidetrack well currently produces 1,600 - 1,700 bopd
from a limited six foot completion interval on the Turonian oil
rim. The well is performing better than anticipated, underlining
the potential for this reservoir. Optimal development of the oil
rim requires the drilling of long horizontal wells and producing in
a measured way to keep the water and gas in place. The Directors
estimate that these wells could produce up to 5,000 bopd per well
and this is expected to be confirmed by the simulation
modelling.
The Company expects the simulation study to take approximately
three months and will allow the Turonian Oil Rim Development Plan
to be finalised.
Once the simulation modelling work has been completed, a further
update will be provided to the market.
Stefan Oliver, CEO said:
"We are very pleased with the results of the latest CPR and the
follow on work using the production data for the two producing
wells. The Aje Field clearly has great potential to become a very
significant production asset and we are busy working on the next
stage of its development."
For further information please visit www.mxoil.co.uk or
contact:
MX Oil PLC
Stefan Olivier, CEO +44 20 7571 0473
Cairn Financial Advisers LLP
(Nominated Adviser)
Jo Turner/James Caithie +44 20 7213 0880
Cornhill Capital
(Broker)
Daniel Gee +44 20 7710 9612
Glossary of key terms
bopd Barrels of oil per day
The announcement has also been reviewed by Nigel McKim, COO of
MX Oil plc, who is a petroleum engineer and SPE member with more
than 30 years of experience in field development planning and
production.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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