TIDMCORO
RNS Number : 3391U
Coro Energy PLC
22 November 2019
22 November 2019
Coro Energy plc
("Coro" or the "Company")
Mako Field Update
Coro Energy plc, the Southeast Asian focused upstream oil and
gas company, is pleased to announce an update on operations at the
Tambak-1 well in the Duyung Production Sharing Contract ("PSC"),
offshore Indonesia, in which Coro holds a 15% interest.
The Tambak-1 well was designed to both appraise the Mako gas
field and test the underlying Tambak exploration prospect.
Following the drill stem test ("DST") at Tambak-1, which flowed
dry gas at a maximum flow rate of 11.4 MMscf/d, operations have now
concluded, resulting in the highly successful appraisal of the Mako
gas field. The Tambak-1 well encountered 24 metres of intra-Muda
reservoir sandstones at a depth of 389 metres true vertical depth
sub-sea ("mTVDSS"), confirmed a common gas-water contact across the
field and culminated in a DST reflecting the potential
deliverability of the Mako reservoir.
The well was deepened beneath the Mako field to a depth of 1,543
mTVDSS to test the Tambak exploration prospect. The well
encountered multiple sandstone intervals in the Lower Gabus section
as predicted, with corresponding hydrocarbon shows seen while
drilling. However, petrophysical interpretation of wireline log
data has concluded that these sandstones have low gas saturations
and attempts to collect fluid samples and pressure data demonstrate
low permeabilities.
The well is currently being plugged and abandoned as planned,
prior to the Asian Endeavour 1 rig being demobilised. Overall, the
drilling campaign has been completed within the expected time frame
and within budget.
Tambak-1 Highlights
-- A 24 metre intra-Muda sandstone section encountered, substantially thicker than predicted
-- A well-developed 17 metre upper section of high permeability
and good porosity sandstone, notably thicker than seen elsewhere in
the Mako field, together with a lower sandstone unit of 7
metres
-- A well-defined gas-water contact at 393 mTVDSS, consistent
with that seen in all other wells on the structure
-- Reservoir pressure data confirms Mako field to be a simple, single gas tank system
-- A cased hole DST conducted between 389 and 391 mTVDSS
resulted in a maximum flow rate of 11.4 MMscf/d confirming the
deliverability of the Mako reservoir
-- The Lower Gabus reservoirs in the underlying Tambak prospect
were found to have low gas saturations and poor reservoir
characteristics
James Menzies, CEO commented:
"We are very pleased with the flow test results announced today
and the appraisal results overall from this drilling campaign,
which confirms the Mako field as being a very valuable gas
resource. The data demonstrates the excellent reservoir
characteristics across a huge areal extent, with good porosity,
high permeability and the DST has again demonstrated the
deliverability of the Mako reservoir. The DST is particularly
significant as the test was conducted through cased hole and less
than 2 metres of reservoir section perforated. This is in contrast
to the previous DST at Mako South-1 which saw a substantially
larger section tested in open hole. This provides a valid
completion alternative for field development.
We are delighted with the additional resource that has been
proved up in the Mako field as a result of this campaign which we
believe enhances the commercial attractiveness of the project. Coro
management estimate that the campaign has demonstrated a gross
resource addition of at least 100 Bcf and we look forward to the
independent assessment of field resources which will follow."
Mako Gas Field Appraisal Campaign
As previously announced, Tambak-2, the initial well of the two
well campaign was a 13.5 km step out from the original Mako South-1
discovery well. Tambak-2 encountered 10 metres of high quality
gas-bearing reservoir intra-Muda sandstones, representing a better
developed reservoir than seen in the discovery well. It also
confirmed a common gas-water contact and pressure system across the
Mako structure, which covers an area of approximately 350 square
km.
The Tambak-1 well, located on the north-east flank of the Mako
structure, was designed to appraise the field limits. The well
encountered 24 metres of excellent quality intra-Muda sandstones,
exhibiting the gas-water contact in the reservoir section, with 5
metres of sandstones in the gas leg. The gas-water contact was
consistent with other wells on the Mako field structure and
pressure data again confirming a common pressure system across the
field.
A cased hole DST was conducted across a 2 metre interval of
intra-Muda reservoir in the Tambak-1 well. A section between 389
and 391 mTVDSS was perforated and flowed dry gas at a rate of 11.4
MMscf/d on a 2.8 inch choke with well head tubing pressure being
maintained at 225 psi. Onsite gas composition analysis confirmed
this to be high quality, dry, sweet natural gas.
An independent review by Gaffney Cline & Associates
previously ascribed gross 2C resources of 276 Bcf (48.78 MMboe) of
recoverable dry gas in the Mako field with gross 3C resources of
392 Bcf (69.3 MMboe) representing additional field upside. Coro
management estimate that the drilling campaign has demonstrated a
significant increase in gross resources in the Mako field and will
result in an additional increase of at least 100 Bcf in the 2C
resource category, reflecting an upgrade of at least 35% in total
gross 2C resources.
Tambak Exploration Results
The Tambak-2 well was drilled to a total depth of 1,544 mTVDSS,
encountering several sand bodies in the Lower Gabus section, with
associated gas shows while drilling. Individual sand bodies were 3
to 15 metres in thickness with average porosities in the range of
5% - 15%. Following wireline logging, pressure surveying and fluid
sampling, a petrophysical evaluation concluded that these
sandstones contained low gas saturation levels of between 20% - 30%
and is likely to represent residual gas. The sandstones were of
very poor reservoir quality, having very low permeabilities of
circa 1 to 3 millidarcies. While not commercial, the exploration
results provide clear evidence of an active petroleum system
underlying the base Muda unconformity, which is encouraging for
future exploration within the Duyung PSC.
Next Steps
The valuable information collected from this campaign will be
used to revisit the resource estimates for the field. The Duyung
PSC partners will be commissioning an independent assessment of
resources, which we currently expect to be completed in Q1
2020.
Following this work, the marketing of Mako gas will continue.
Further details will be provided in due course.
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
For further information please contact:
Coro Energy plc Tel: 44 (0)20 3965 7917
James Menzies, Chief Executive Officer
Andrew Dennan, Chief Financial Officer
Cenkos Securities plc (Nominated Adviser) Tel: 44 (0)20 7397 8900
Ben Jeynes
Katy Birkin
Vigo Communications Ltd (IR/PR Advisor) Tel: 44 (0)20 7390 0230
Patrick d'Ancona
Chris McMahon
Mirabaud Securities Ltd (Joint Broker) Tel: 44 (0)20 3167 7221
Peter Krens
Ed Haig-Thomas
Turner Pope Investments (TPI) Ltd Tel: 44 (0)20 3657 0050
(Joint Broker) info@turnerpope.com
Zoe Alexander
Andy Thacker
The information contained in this announcement has been reviewed
by Coro Energy's South East Asian Business Manager and Geologist
Pierre Eliet, a Fellow of the Geological Society and a Member of
the Petroleum Exploration Society of Great Britain.
The volumes included in this announcement are in accordance with
SPE standards. Bcf means billion standard cubic feet; MMboe means
million barrels of oil equivalent and MMscf/d means million
standard cubic feet of natural gas per day.
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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