Cabot Energy Plc (LON:CAB) has revealed provisional results from the 10-32 sidetrack well in the Rainbow area in Canada, where an oil flow rate of 344 barrels of oil per day has now been measured.
The well was drilled in December, down to a vertical depth of around 1,500 metres, and it cut approximately 400 metres through the targeted reef with some 200 metres described as encountering high porosity reservoir.
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Drilling work took longer than expected due to slower progress of directional drilling through overburden, nonetheless, the overall outcome has exceeded the company’s pre-drill expectations.
Cabot tested the well over a 38-hour period, and the final flow test delivered an extrapolated production rate of 408 barrels of fluid per day, comprising 344 bopd.
The company said it expects the well will produce ‘dry oil’ once all the well completion fluid has been removed from the hole.
It is anticipated that the well will provide an initial production rate of 200 bopd, in order to manage the reservoir’s longer term production potential.
"This is the company's second sidetrack well and the results have again exceeded expectations. These higher production rates will further improve the robust economics of the project,” said Keith Bush, Cabot chief executive.
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"The next phase of the development of the Rainbow and Virgo areas will focus on sidetrack wells from existing well bores, of which up to 10 are planned for this year.
“The valuable experience gained in the directional drilling phase of these two sidetrack wells will be applied to the benefit of the winter work programme due to start shortly."
Cabot expects to start its next programme of work later this month, and it also plans to provide a further update to investors, including a full production update and 2018 guidance.