Xtract Energy Updates on Dutch and Danish Operations
Xtract Energy plc has today announced updates on its operations in Denmark and the Netherlands.
In the Netherlands, operator Chevron will begin drilling on P2-10 well on the P2 block soon. Xtract hold a 5 per cent overriding sales royalty agreement with Chevron in the project, through its wholly owned subsidiary Elko Energy.
The objective will see Chevron move the Noble Byron Welliver jack up drilling rig from its current offshore location in the Dutch North Sea to the P2 block. The Noble Byron Welliver's operations in the Dutch North Sea have now been completed. The moving of the rig is dependent on weather conditions, with Xtract saying Chevron will complete the move as soon as weather allows.
Xtract says the P2-10 well will be spudded by the end of December 2011 and will run over 100 days. The appraisal well will target an existing gas discovery with the intents to evaluate and measure hydrocarbon flow rates from an extended reach horizontal well within the Rotliegendes sandstone reservoir.
A second well, the Luna exploration well located in Denmark, will also be drilled as soon as weather conditions allow the rig needed to be transported. The Luna well in the Danish offshore 01/11 license area is expected to be spudded on 30 December 2011.
Xtract says the Rotliegendes reservoir is believed to be present in the area where Luna will be drilled. The Luna well will take a month to complete after the rig has been towed to the location.
Xtract has been informed that the rig, the Maersk Resolve rig, will be released from operator Norwegian Energy Company ASA (Noreco) on 28 December.
The company says, however, that uncertainty exists in relation to the Luna well.
"Uncertainty still exists however on which seismic event represents the top reservoir and where the pinch out occurs," a statement for Xtract says.
"In addition to the uncertainty on the pinch out position, there is a possibility that the Rotliegendes does not, in fact, pinch out but continues up dip into Lead A. It is therefore possible that Luna and Lead A are connected and represent one feature."
Xtract says that the Luna well will therefore test the overall Rotliegendes play concept. Subsidiary Elko holds a 33 per cent working interest in exploration and production license 01/11.