Leni contracts Schlumberger, SMP for workover work at Spanish oil fields

Source: Leni Gas & Oil

Leni Gas & Oil’s Spanish subsidiary Compania Petrolifera de Sedano S.L. has signed contracts and agreed work scopes with both the Société de Maintenance Pétrolière (SMP) and Schlumberger (NYSE: SLB) for its planned work-over operations at its wholly owned Ayoluengo and Hontomin oil fields in Northern Spain. Leni has also received all outstanding permits and authorizations from the Spanish authorities in order to commence the planned work-over program.

Schlumberger will provide all necessary wireline logging and perforating services, as well as cementing services if required, and SMP will supply their 80-tonne "SMP-2" drilling unit which will be used in conjunction with the Company owned Cardwell 45-tonne rig to ensure overall smooth operations. Mobilisation to the field will commence shortly and the program is expected to get under way on the April 26, 2011.

Work will initially focus on six high productivity wells in the crestal area of the Ayoluengo Field (Ayo-4, 5, 32, 36, 37and 46) and the perforation of approximately 45 meters of previously untapped reservoir in the Hontomin-2 well on the nearby Hontomin Field. Each Ayoluengo well will be cleaned out, re-perforated over existing intervals, some new intervals will be perforated and the casing and production tubulars will be repaired.

Additional cementing operations will be selectively undertaken to improve water shut-off where this is required. A progressive cavitation pump (PCP) will be installed in well Ayo-37 to increase the production and reliability of that well. Depending on initial results up to four additional wells (Ayo-18, 35, 38 and 44) may be added to the program at Ayoluengo.

The estimated production capacity from the work-over program ranges from 300 to over 500 barrels oil per day. The initial seven well program is expected to be completed within 60 days.

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