Valeura Energy has successfully completed an infill drilling campaign at Nong Yao A and initiated development drilling on the Nong Yao C extension, both of which are part of the Nong Yao oil field.
The company drilled two horizontal wells at the Nong Yao A wellhead platform, both of which have been brought online as producers. The 37H well culminated in a horizontal section within the primary target H12.5 reservoir. This zone has been completed for production and is currently contributing about 500 barrels per day (b/d) of oil, based on performance over the previous ten days, according to a company release on May 28. Additionally, the well encountered 68 feet of net oil pay across eight separate appraisal target intervals, which will be further evaluated as potential future development well targets.
The 38H well has been completed as a horizontal producer in the H4.3 reservoir interval and is currently contributing 1,000 b/d of oil, based on performance over the previous five days. A thin oil-bearing sand was encountered in the shallower H2.0 sand interval, which will also be studied to determine additional producible volumes.
Following the completion of operations at Nong Yao A, Valeura’s contracted drilling rig moved to the Nong Yao C mobile offshore production unit, where it has started batch drilling operations to develop the Nong Yao C field extension. This drilling campaign is expected to take four months and will comprise up to nine gross wells, including six producer wells and up to three water injectors.
Valeura anticipates first oil from the Nong Yao C development in the third quarter of this year. The company is targeting aggregate peak oil production rates from the expanded Nong Yao field of 11,000 b/d, representing a 50% increase over the 7,307 b/d reported for this year’s first quarter.
Valeura Energy Inc (TSX:VLE) is an upstream oil & gas company, with a clear strategy to add value for shareholders. The Company has a strong balance sheet positioning it for potential inorganic growth opportunities in the near/medium-term, and substantial longer-term upside potential through an operated deep, tight gas play.
