UK: Perenco Begins Tyne Sidetrack

Perenco has begun operations to sidetrack the T5 production well on the UK Tyne field, partner in the project Iona Energy has said today.

The sidetracking of the T5 well, which previously flowed at peak daily rates of 25 million standard cubic feet (MMscf), aims to revitalise gas production at the well.  Iona says that previously pressure testing on the T5 well has indicated that the targeted reservoir pressure behind pipe is 5126 pounds per square inch.

The TZ5 sidetrack, estimated to take around 90 days, will aim to "relocate the high water-cut vertical production well up-structure and complete with a high angle reservoir section," Iona said in a statement. 

Should the sidetrack be successful, Iona says, gas production could be re-established at a daily rate of 20 MMscf, the company explained, with the value of this production estimated to be over $20 million (USD) per year. Iona will be required to pay costs only up to a cap of £21.2 million ($32.9 million) for this operation.

Iona Energy currently holds a 20 per cent interest in the Tyne gas field, on which the T5 well is located, as well as the Trent gas field, both located in the UK.  However, the company also holds an option to increase its interest in both fields to 37.5 per cent.