Oil and Gas Corporate News
Matra Petroleum (LON:MTA) plc (UNDER REVIEW) (MTA, 1.425p, ? 1.72%) announced an update on its operations and plans in the Sokolovskoe Field, Russia. Well-12 has suffered from a build-up of wax in the tubing and an increase in water cut to 70% and has ceased to flow and has now been shut-in. The directors have sourced a work-over rig (expected to be on site on 17 August) that will allow the Company to pull and clean the production tubing and then to artificially place the well into temporary production, using nitrogen. This will also allow production logging over the entire liner interval and into the production casing and will provide the best opportunity to identify the source of the water production. Following production logging, a pressure survey will be conducted before deciding on the viability of further remedial work on the well. Well-13: After establishing water-free oil production, the leased production equipment at the site was demobilised and the well shut-in. Analysis of the production and pressure data shows that the well should be expected to produce at around 100 bopd with the installation of an electrical submersible pump and surface production facilities at the site. A firm decision to install this equipment has not yet been made but the directors expect that its installation will enable well-13 to generate a positive cash flow after the deduction of production taxes and other costs. The directors have taken the decision to await the results of the well-12 work-over before committing to this expenditure. Evaluation of the Sokolovskoe Field requires two further elements before proceeding with a full field development: Delineation of the full extent of the Sokolovskoe structure by means of a full field 3D seismic survey; and the establishment of commercial production over an extended period and the confirmation of the geological model by the drilling of well-14. The cost of acquiring the 3D survey would be approximately $2 million and the cost of well-14 is estimated at $5 million. These costs are subject to change due to variations in exchange rates and local market conditions. Additional funding would be required before the Company could commit to such a work programme.
Melrose Resources (LON:MRS) (MRS, 192.75p, ? 0.0%) announced its interim results for the six month period ended 30 June 2011. Operational…
