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Solo Oil plans to acquire a diverse portfolio of direct and indirect interests in exploration, development and production oil and gas assets which are based in the Americas, Europe or Africa. Both on-shore and off-shore interests will be considered. The intention is to acquire a widely distributed mix of oil and gas development and production assets.
Solo Oil: Ausable Reef progress report lifts oil-in-place by 10 pct
Solo Oil (LON:SOLO) today updated investors on the ongoing development of the Ausable Reef enhanced oil recovery project in Ontario Canada.
The firm’s joint venture partner Reef Resources (CVE:REE) has reported significant progress on a number of field activities.
Notably, Reef revealed that a new assessment of the field’s oil-in-place has been completed following detailed petrophysical analysis alongside 3D seismic data. The field is now estimated to contain 8.9 million barrels of oil, 10 per cent more than previous estimates.
"Appreciable progress has been made with the project so far this year including the increase in the oil-in-place resources providing further support for our investment case,” said executive director Neil Ritson.
“The final reserves will depend on the details of the gas cycling scheme, however, based on analogous fields in Northern Alberta, such as the Golden Spike Field, recovery factors in excess of 70 per cent, and potentially as high as 90 per cent may be expected."
Also Reef reported the successful installation of a venture pump into the Ausable #5 well. It will now take 10-14 days for the pump to be commissioned and for flow rates to be stabilised.
Meanwhile the Ausable #1 well continues to produce oil, at rates up to 30 barrels a day. This output is, however, choked back and it will continue to be restricted until the gas injection phase of the EOR programme.
Reef Resources is currently building the field flow-line to the Ausable #2 well. This will allow the well to be connected to the venturi pump system. Additionally it said that a further pump skid is also being built and it is expected to be delivered in February.
Subsequently all four existing Ausable Reef wells will be connected to the field’s central processing facility.
Drilling is currently underway on the nearby North Airport #1 well. Here Solo is looking for gas that can be injected and recycled through the Ausable Reef as part of the EOR programme.
The well is expected to reach an intermediate casing point by mid-February and reach target depth, of 608 metres, by early March.
Reef Resources president Arnie Hanson said: "We have been making very substantial progress so far this year, however, January and February are typically the worst weather months and although current forecasts are moderate some delays may occur.
“We look forward to making a further update in the coming weeks."
