Horizon Oil Agreed to Proceed into a WZ12-8E Phase 2 Development

Source: www.gulfoilandgas.com 9/29/2022, Location: Asia

Horizon Oil Limited (Horizon) is pleased to advise that, following the early success of the WZ12-8E Phase 1 development drilling programme, the Block 22/12 Joint Venture has agreed to proceed into a WZ12-8E Phase 2 development that will drill between three and five additional wells from the WZ12-8E wellhead platform. The wells will be drilled using the Strike rig that drilled the Phase 1 programme and which is currently drilling appraisal / infill wells in the WZ6-12 area. The WZ6-12 programme is expected to be completed in the next two weeks with the Strike rig to return to the WZ12-8E field in late October. The Joint Venture is currently finalising well numbers and locations for the Phase 2 drilling programme. Indicative recovery from three Phase 2 wells would be 0.75 mmbbls gross (Horizon net 0.20 mmbbls) which will be reclassified from current contingent resources to reserves in Horizon’s next reserves update. Incremental capex costs for a three well programme is currently estimated to be approximately US$7.5 million (net to Horizon), which is to be funded from cash on hand.

The momentum for this Phase 2 programme is a combination of strong production performance of the Phase 1 wells, the short-term availability of the Strike rig, and the demonstrated efficient performance of the rig which has now been in Block 22/12 for seven months. The six WZ12-8E Phase 1 production wells were producing 6,359 bopd gross (Horizon net 1,714 bopd) on 25 September, following the successful commissioning of the water processing and disposal system on the WZ12-8E wellhead platform which will free-up pipeline capacity to allow increased rates from the WZ12-8E wells. Total Block 22/12 Beibu production on 25 September including WZ12-8E was 14,486 bopd gross (Horizon net 3,904 bopd).

As reported previously, the WZ6-12 workover programme was completed in late August and the rig then proceeded to drill the WZ6-12 M3 appraisal well in early September. The M3 well did not intersect commercial hydrocarbons and was immediately side-tracked to drill a WZ6-12 M1 infill well which is a follow-up to the successful development well drilled in early 2021. The M1 sidetrack has intersected oil in at least three reservoirs and will be batch-completed and brought onto production together with the WZ6-12 North infill well that is currently being drilled. These WZ6-12 drilling operations will be completed by mid-October with the rig then returned to the WZ12-8E field for the Phase 2 drilling programme.

Horizon CEO, Richard Beament added:
‘‘It is extremely pleasing that the Block 22/12 Joint Venture now has the opportunity to proceed to a Phase 2 drilling programme in the WZ12-8E field following the successful Phase 1 drilling campaign earlier this year and encouraging performance of the Phase 1 wells during the first five months of production.’’


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