Victoria Petroleum N.L. (”Vicpet”) as operator for the Growler Oilfield Development Project provides the following progress report on the Growler Oilfield Development Project and PEL 104, Cooper Basin South Australia;
1. Continuing load out of oil from the Growler Oil Field to Moomba by tanker and then on down the Moomba-Port Bonython oil pipeline for sale. The sale of this oil and continuing oil production, will take place against a background of satisfyingly high oil prices in excess of US$120/barrel. This continuing oil production is significant as this is the first oil produced from PEL 104 located on the north western margin of the Cooper-Eromanga Basin.
2. Completion of the first phase of the Growler Oil Field production central facilities infrastructure, which involved the construction of a 22 kilometre production road, construction of central gathering facilities, plus the tie in of Growler-1 & 2 wells to the central facilities.
3. The installation of pumps on both Growler wells, with the pumps put into operation and the beginning of the Extended Production Test (ETP) to gain knowledge of the wells’ output.
The EPT commenced on 13th March 2008 and will run for 180 days. The JV will gain reservoir data from the EPT to enable the JV to proceed to a full overall Growler Development Plan. Initial analysis of the Growler wells performance will be available after 100 days.
The benefit from the EPT is not only the knowledge gained about the reservoir extent and deliverability, but also the side benefit of cash flow.
Growler Extended Production Test (EPT)
The Growler Field is currently producing an average of 200 - 210 barrels of oil per day. The Growler Oil Field has produced over 11,000 barrels of oil since production commenced on the 13th of March 2008.
Vicpet as Operator for the Growler Oil Field, intends to step rate increases in production once it is satisfied with the production against the drawdown levels of the wells, in keeping with good oil field production practice. Initial pump problems at Growler-1 are in the process of being remedied. The pumps at Growler, if production results justify, can pump at a cumulative rate of up to 365 bopd.
On completion of the EPT, Impress under the JV Technical Services Agreement will, in consultation with the operator, recommend to the PEL 104 JV a Growler Development Plan. Impress have advised of their intention of recommending the drilling of at least one development well, (Growler-3) prior to the end of the year and the acquisition of 3D seismic over the Growler oil Field in the second quarter 2009. These recommendations are subject to Joint Venture approval.
The aim of the Joint Venture is to have sufficient wells in the Growler Oil Field to achieve production levels of up to 750 - 1,000 barrels of oil per day. Production at these rates, without horizontal drilling, would require up to 10 additional vertical wells to be drilled in the field, subject to joint venture approval. Information from the JV external consultants indicate the Growler Oilfield on its own, at a confidence level of P50, contains 7.7 million barrels of oil in place, with an expected recovery of 1.6 million barrels.
Future PEL 104 Exploration Drilling Activity
The PEL 104 Joint Venture is tendering for a drilling rig to drill three exploration wells in PEL 104 in accordance with the permit drilling commitment; with the option to drill a further two wells including Growler-3. The PEL 104 exploration wells named, Tigershark-1, Tigercat-1 and Meteor-1 will test significant prospects close to the Growler Field. Drilling is planned to commence in the third quarter of 2008, subject to the necessary regulatory approvals.
The Growler Oil Field will serve as a central production facility for future production from the Wirraway Oil Field and in the event of exploration success, any oil discovered in the exploration prospects to be drilled in PEL 104 and the Warhawk Prospect to the north, when drilled.
Interests in the PEL 104 JV are:
Victoria Petroleum NL (Operator) 40%
Impress Energy Limited 40%
Roma Petroleum NL 20%
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