BG Group (LSE: BG.) reported this morning that recent drill stem tests on the Iracema Well in the Santos Basin, offshore Brazil had confirmed the presence of high quality light oil and “record” productivity. The Iracema appraisal well is located 33 kilometres north-west of the Tupi discovery well. Iracema was drilled to a depth of 5 000 metres and completed in September 2009.
BG Group has a 25% interest in the well, with Brazilian oil giant Petrobras holding 65% and GALP holding the remaining 10%.
The drill stem tests were carried out over two zones in the Iracema Well, and recorded aggregate production of 10,500 barrels of oil per day (bopd) of 32° API oil and 17 million standard cubic feet per day (mmscfd) of gas. The well in-flow performance recorded was the highest achieved in BG Group's Santos Basin interests to date. . BG Group noted that flow rates were constrained by the facilities on hand, and that production rates of up to 50,000 bopd were anticipated once the well is in full production.
“The excellent characteristics of the pre-salt carbonate reservoirs in BG Group's concessions, confirmed by recent appraisal wells, have a highly significant positive influence on expected well recoveries, well density, development capital expenditure and project economics,” the company added.
Further evaluation of the well data is on-going.