Continental Focus, International Reach

Cygam Updates Tunisia Action

Friday, June 21, 2013

Cygam Energy reported that its TT Field, excluding the TT12, in Tunisia on the BBT concession is producing at a gross average rate of 2,566 bpd during the first 17 days of June. Average field water cut over the same period was stable at 32% with the majority of the produced water coming from three horizontal wells, TT10, TT11, and TT13.

 

Plans for water injection into the main reservoir are progressing and are expected to be included in the 2013 facility development.

 

Following liquid loading issues in the TT10 and TT11 wells, which had ceased producing by natural flow, artificial lift was implemented using jet pumps which were successfully installed in both wells in early June. Production optimization of both wells is currently ongoing. A jet pump has also been installed on the TT2 well and is currently being optimized.

 

The company’s TT12 well is the fifth horizontal well test of the Ordovician Quartzite Reservoir on the BBT Concession. Completion operations on TT12 commenced on May 12 and production testing began on May 18. Initial unstabilized flow from the well was at short-term rates equivalent to 3,000 barrels of fluid per day with water cuts of over 90%. The well was subsequently shut-in pending delivery of equipment that would allow testing of individual sections of the well.

The well is currently on production, flowing 410 bpd (gross) with an average water cut of 83% (2,400 bfpd). Additional workover operations are planned.

The TT21 development well was spud on May 13 and, after reaching a total depth of 1,555 meters measured depth, the rig was released on May 30. Completion operations at the well are ongoing.

 

The company also spud the El Bel-1 well during the first week of June. The well is targeting a large Ordovician structural feature some 25 kms to the east of the TT Field. Drilling and evaluation operations are ongoing.

Moving forward Cygam has budgeted for the drilling and completion of up to a further four vertical development wells on the TT field for the balance of 2013. Following a significant redesign of the vertical wells, the operator is forecasting a significant cost reduction in completed vertical development well costs to less than $3.5 million gross per well.

Construction activities relating to the Early Production Facility and in-field pipelines are progressing with completion expected in Q4.

The planned 250 sq km 3D exploration seismic program targeting the regionally prolific Acacus oil fairway in the southern part of the Sud Remada permit has been postponed and may be tendered later in the year.


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