Press
Release |
27 September
2018 |
This
announcement is deemed to contain Inside Information as defined
under the
Market Abuse Regulations n. 596/2014 |
Cadogan Petroleum
Plc.
(“Cadogan” or the
“Company”)
Operational
update
Resumption of
drilling activity & results of reservoir
study
Cadogan Petroleum plc. (“Cadogan”), an independent, diversified,
oil & gas company listed on the London Stock Exchange, is
pleased to provide the following operational update.
Drilling operations have commenced on the shallow Vovche-2 well
on Bitlyanska licence. The well is designed to test the potential
of satellite prospects around an established, old oil field. The
well is anticipated to take 20 days to drill and will then be put
on production if successful.
A heavier rig is being selected to drill the Blazh-10 well on
the Monastyretska licence as planned. The well will target the
Yamna sandstones, the reservoir of the three currently producing
wells, at a depth of about 3,500 metres. The well is expected to
spud in November and is anticipated to take three months to drill.
This well will also be put on production if successful.
The Vovche-2 well and the Blazh-10 well fullfil the Company’s
remaining commitments on the Bitlyanska and Monastyretska
exploration licences, a prerequisite to convert them into
production licences.
The Monastyretska reservoir study has been completed, as
planned. The study has highlighted significant upside potential
from infill drilling and the implementation of a water injection
scheme. The study predicts that infill drilling can add up to
2.3 million barrels (MBbl) to the cumulative production of a
do-nothing scenario with a further 2.1 MBbl coming from the
implementation of water injection. Future cumulative production of
a do-nothing scenario, i.e. from the three exsting wells only, is
predicted to be 1.2 MBbl and is in line with the current estimation
of 2P reserves.
The study has been conducted using a reservoir simulation model
validated by matching the historical performances of the existing
three producing wells. An assessment of the cost of the
various scenarios is on-going in order to select the optimal
development scheme.
Commenting, Guido Michelotti, CEO of Cadogan, said:
“We are encouraged by the results of the reservoir simulation
study. It confirms our expectation of upside potential on the core
Monastyretska licence and sets the direction for its optimal
exploitation. The field is geologically complex, but can
deliver good results if carefully studied and produced under
best-in-class reservoir management, as demonstrated by our recent
string of successful work-overs, post which it continues to produce
at a stable rate of 212 bpd. We are also excited by the resumption
of drilling operations after a pause of three years and look
forward to progressing these further.”
-ENDS-
For further information, please
contact:
Cadogan Petroleum plc. |
|
|
Guido Michelotti |
Chief Executive Officer |
+380 (44) 594 5870 |
Ben Harber |
Company Secretary |
+44 0207 264 4366 |
|
|
|
Cantor Fitzgerald Europe |
|
|
David
Porter
Nick Tulloch |
|
+44 (0) 20 7894
7000 |