Frontera announces an operational update
Published by Lydia Woellwarth,
Frontera Energy Corporation has announced an operational update.
Frontera delivered estimated 2018 production of 70 999 boe/d before royalties (63 180 boe/d after royalties), within the revised 2018 production guidance of 70 000 - 72 000 boe/d before royalties (63 000 - 65 000 boe/d after royalties). Subsequent to the Company providing updated guidance, pipeline disruptions shut down production in Peru on Block 192 during December 2018 and impacted annual production before royalties by approximately 875 bpd before royalties (745 bpd after royalties). 4Q18 estimated production of 71 850 boe/d before royalties (63 835 boe/d after royalties), was 8.2% higher than production in the 3Q18.
Current production is approximately 72 000 boe/d before royalties (64 000 boe/d after royalties), following the completion of the Quifa SW water handling expansion project and strong production from the Candelilla-7 development well.
Colombia production in the 4Q18 averaged an estimated 62 923 boe/d before royalties (56 233 boe/d after royalties), an increase of 3.1% compared to the 3Q18.
During the 1Q19, the Company plans to drill 27 development wells, including 23 in the Quifa area, four exploration wells (two at Sabanero, one at Jaspe and one at Mapache) and one water injection well at Copa-A Norte. At the Copa field, increased development drilling combined with increased water injection drilling in 2019 is expected to increase field level production from approximately 4000 bpd currently to over 10 000 bpd by 2020.
The completion of the Quifa SW water handling expansion project was completed on time and on budget, with current water disposal volumes of over 350 000 bpd resulting in an incremental 4300 bpd of oil (approximately 2600 bpd to Frontera), from 76 reactivated wells. Full water injection capacity to over 400 000 bpd is expected in the near-term as the final pump is commissioned.
Guatiquia block update
On 2 December 2018, the Company began drilling the Candelilla-7 development well on the Guatiquia block, which reached a total depth of 11 858 ft (11 669 ft TVD) on 19 December 2018. The well encountered 28 ft of net pay in the Mirador formation, 9 ft of net pay in the Guadalupe formation, and 56 ft of net pay in the Lower Sand-3 formation. The well was completed in the Lower Sand-3 formation with an electrical submersible pump. The Lower Sand-3 formation was flow tested for approximately 13 days at an average rate of 4195 bpd of 43° API oil with an average water cut of 1% at stabilised bottomhole flowing pressure with a 5.9% drawdown. Current production is over 4600 bpd under natural flow. There has been a total of 47 379 bbls of oil produced during the Lower Sand-3 testing period. The increased volume of high quality crude from Candelilla-7 will help reduce the need for the Company to purchase third party blends required to upgrade heavier grade oil production in other parts of the portfolio to meet pipeline specifications.
On 19 December 2018, the Company was informed by the Agencia Nacional de Hidrocarburos (ANH) that the proposed expansion of the Coralillo exploitation area on the Guatiquia block was approved. The expansion adds 1383 hectares (approximately 3400 acres) to the Coralillo exploitation area, for a total area of 1571 hectares (approximately 3880 acres). The expanded area will fully capture the potential Lower Sand-1 and Guadalupe pools discovered in the Coralillo-1 and Coralillo-3 exploration wells and allow for the drilling of between seven to nine development locations. The Company began drilling the Coralillo-2 development well on 11 January 2019.
Heavy oil business unit update
On 7 December 2018, the Company began drilling the Chaman-2D exploration well on the Sabanero block, which reached a total depth of 4550 ft (3348 ft TVD) on 20 December 2018. The well encountered 15 ft of net pay on rock, in the Basales formation. The well was completed in the Basales formation with an electrical submersible pump. The zone was flow tested for 7 days at an average rate of 107 bpd of 12.9° API oil with an average water cut of 85% at stabilized bottomhole flowing pressure of 1108 psi with a 10% drawdown. The testing was terminated.
On 5 January 2019, the Company began drilling the Seje-1 exploration well on the Sabanero block targeting a separate structural closure from the Chaman-2D well.
On 13 December 2018, the Company began drilling the Jaspe-7D exploration well on the Quifa Norte block in the Quifa area. The well was drilled to a total depth of 4403 ft (3515 ft TVD), in a down dip position and encountered non-commercial hydrocarbons and was abandoned.
On 10 January 2019, the Company began drilling the Jaspe-8D exploration well on the Quifa Norte block in the Quifa area. The well was drilled to a total depth of 4710 ft (3437 ft TVD) on 14 January 2019. The well encountered 21 ft of net pay, oil on rock, in two zones of the Basales formation. The well is being cased for evaluation and testing.
Peru updatePeru production in the 4Q18 averaged an estimated 8926 bpd before royalties (7603 bpd after royalties), an increase of 93.4% compared to the 3Q18. Production from Block 192 in Peru remains shut in with the contract in force majeure as a result of community disputes relating to the NorPeruano pipeline in areas outside of Block 192. It is now expected that the contract relating to Block 192 will be extended to at least November 2019, from 7 September 2019 previously. Current production from Peru is approximately 930 bpd before royalties (790 bpd after royalties) which includes 150 bpd from Block 192 used for internal consumption. Peru production was estimated at 11 550 bpd before royalties (9850 bpd after royalties) prior to the force majeure event on the NorPeruano pipeline in late November.
As recently reported, progress continues to be made with respect to the finalisation of a joint venture agreement with CGX Energy Inc. A definitive rig agreement has been executed with ROWAN RIGS S.A R.L and CGX for the use of the Ralph Coffman offshore jack-up rig which is targeted to commence during the 2Q19. All the required activity is being undertaken to ensure the Utakwaaka-1 exploration well will be drilled by 27 November 2019, to satisfy the contractual commitment.
Read the article online at: https://www.worldpipelines.com/business-news/16012019/frontera-announces-an-operational-update/
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