Ithaca Energy Inc (LON:IAE) , the North Sea explorer, reported today that the Stella field appraisal well (30/6a-8) has proved the presence of additional volumes of hydrocarbon and high quality reservoir. According to the report, the well confirmed hydrocarbons more than 500 feet lower than in any previous wells and this has demonstrated that connected hydrocarbons are present in the field down to the geological spill. The results show that the well flowed in excess of 5,000 barrels of liquid per day (oil plus water) consisting of 2,850 barrels of light oil (39 degrees API) per day and 2,150 barrels of water per day. The well intersected a 22.5 foot section of Paleocene Andrew sandstone reservoir close to the mapped closure of the field, which is estimated to cover more than 22 square kilometres. The company detected similarities between the reservoir properties and thickness observed in this well and the wells at the crest of the Stella structure. The appraisal wells drilled on the crest of the Stella structure produced up to 17 million standard cubic feet of gas per day and 3,000 barrels of condensate per day with no water. The company confirmed that the light oil encountered at this new location, 500 feet deeper in the structure, is consistent with predictions of gas, condensate and oil coexisting within the same reservoir.
Going forward, the well will be geologically sidetracked in order to test the reservoir up-flank between this vertical bore and existing crestal wells. The company expect the sidetrack to take approximately 15 days. From this point, the company will move into full scale development of Stella and satellite discoveries using one of several development options for the Greater Stella Area. They expect first oil and gas production in 2012. Chief Exploration Office Nick Muir commented:
"This is a great moment for Ithaca. The results of this appraisal well have proved very sizeable additions to the hydrocarbons originally encountered in the Stella discovery. The field is clearly even more significant than we thought and the results of this well and the test have exceeded all our expectations. Stella can now go forward as a standalone but expandable development that will allow for the future tieback of other Ithaca operated discoveries in the Greater Stella Area, such…
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