Canada and Ireland-focused Enegi Oil (LON:ENEG) announced this morning that its programme for the next stage of the work-over for its PAP#1 ST#3 well that is onshore Newfoundland has been submitted to the province’s Department of Natural Resources.
Since it was first drilled in 2008, PAP#1 has had a flow test, extended well test and was reworked late last year and earlier this year.
The first phase of the work-over programme increased the pressure recovery rate and improved reservoir connectivity, with encouraging results that have moved the company to undertake a second phase in the hope of achieving further improvements.
The proposed next phase in the programme should begin during the next two weeks and take a maximum of four weeks to complete.
Enegi said that as part of its initial programme, between the 31 May and 3 June the well was flowed for 9.5 hours each day, through a 94 per cent choke, and produced between 75 and 94 barrels per day.
After the next phase of the programme, and depending on results achieved, the company may choose to shut the well in for a further period, flow it back or prepare to re-acidise. Once complete, the work-over programme will be followed by an extended well test.
"As previously announced indications are that the completed elements of the work over allow a sustainable production rate of 200 barrels of oil per day, which would mean the well is economic,” said Alan Minty.
“The results of the initial programme are encouraging and we eagerly await the outcome of the second phase."
At the end of June Enegi raised C$1.6 million (£1 million) from a placing of approximately 6.6 million new shares. The new funds are being used to complete the remaining elements of the PAP#1 well work-over programme and to further advance seismic activities over PL2002-01.
The remainder of the funds are being used to continue due diligence activities on Enegi’s four-month option (announced in May) to buy Advanced Buoy Technology – which has access to a range of buoy technologies that would give it the ability to develop proven oil and gas assets even when current estimates of those assets classify them as marginal or sub-economic.