Pharos Energy plc, an independent oil and gas exploration and production company, has announced the commencement of the TGT Field Infill Development Drilling Programme.
Ed Story, President and Chief Executive Officer, commented:
"After a period of enforced inactivity across all the company's operations because of the downturn and pandemic, the commencement of the TGT infill development drilling programme represents a welcome and timely return to optimising production and value. In addition to the firm four wells planned for this year, two further wells are expected to be drilled next year once approved during the annual autumn budget process. The Full Field Development Plan also contains a further 9 contingent wells to be drilled in the years to come."
TGT Field Infill Development Drilling
The company announces the spud of the TGT-H4-34P development well from the H4 well head platform at the southern end of the TGT field, located in 47m of water depth in the Cuu Long Basin offshore Vietnam. The well is being drilled using the jack-up drilling rig PVDII (a photograph of the rig on the H4 platform can be found on our corporate website at www.pharos.energy ). The initial four-well programme will run to the end of this year with an additional two wells pending budgetary approval later this year.
The TGT-H4-34P well is the first infill well in a planned four-well programme across the TGT field. Once each well is completed, it will be tied into the existing TGT processing facilities, contributing to the group's production.
The capital spend for the initial four-well programme is c.$13.2m net to Pharos.
TGT Field Background
The TGT field was discovered by Pharos and developed by the Hoang Long Joint Operating Company (with our partners PTTEP and PVEP), via three unmanned platforms and an FPSO.
Production commenced at 30,000 bopd in August 2011 and peak production of 55,000 bopd was reached in 2012/2013. The field, although in natural decline, is currently producing around 14,000 bopd and the full infill programme is designed to increase production to around 20,000 bopd.
The high-quality crude is sold domestically and commands a premium to Brent (currently $1.71/bbl). Historically, the oil price premium has been priced well above this figure, the maximum being $5.85/bbl.