Aje remediation preparations under way offshore Nigeria

Offshore staff

OSLO, Norway – Remediation work on the Aje-5 well in OML 113 offshore Nigeria is scheduled to begin in December, partner Panoro Energy ASA said in its 3Q financial results.

Production rates during the quarter have continued to be limited, as the well requires subsurface intervention to remedy a mechanical problem.

Further to that, the availability of the gas lift on the Front Puffin FPSO to optimize production rates was limited and some modifications and repair to components of that system have been necessary.

The gas lift system engineering work has been delayed but is now well under way and the system is planned to be operational again in the near future, Panoro confirmed. The delay in using the gas lift system has impacted production during 3Q and will also affect the production expected in 4Q.

However, the Aje-4 well produced throughout the quarter and continues to perform better than anticipated in earlier modeling. On average, the Aje field produced more than 600 b/d of oil net to Panoro during the quarter.

Preparations for the Aje-5 intervention program have started with procurement of long lead items and rig contracting. The intervention is scheduled to be undertaken at the end of 2016 and is designed to remedy mechanical issues with the completion of the well. The company also confirmed that Aje will produce regularly at its earlier stated target rates of 7,000-9,000 b/d once Aje-5 is successfully brought back on-line, which is anticipated for early 2017.

The Aje gas development project, which involves production and sale of gas and liquids from the 163-MMboe Turonian reservoir, is moving through concept definition toward a field development plan. Detailed plans for the project are expected to be submitted for approval during 1H 2017.

Regarding the exploration potential in OML 113 outside of the Aje field itself, Panoro has almost completed a prospective resource review with the reserves auditing company AGR TRACS International and will make a summary available in 4Q.

Panoro CEO John Hamilton said: “The first lifting of Aje crude was another important milestone for our Nigerian project. Resolution of mechanical issues at Aje are now under way and on track to be fully resolved by the beginning of 1Q 2017.”

YFP is the operator of Aje field, partnering with Panoro Energy (12.1913% entitlement to revenue stream, 16.255% paying interest, and 6.5% participating interest).

11/17/2016

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