Xtract Energy: P2-10 Well Operations Frustrated by Weather
The P2-10 well, which is located in the Dutch North Sea, is due to target gas on an existing discovery on the P2 Block. Once spudded, the well program is expected to take about 100 days.
Xtract says that the spud has been delayed due to adverse weather conditions which are making moving the nearby Noble Byron Welliver rig to P2-10's site difficult. No exact date has been given from Chevron as to when the move can be expected, but Xtract says that there are no other reasons for the delay.
"Whilst it is frustrating that the P2-10 well has not yet spudded, 'waiting on weather' is a very normal occurance in the North Sea, particularly during winter months," chief executive of Xtract, Peter Moir said.
Xtract has an overriding royalty arrangement of up to 5 per cent of sales value of the gas and condensate delivered from the well.
Xtract also said that it is experiencing similar difficulties with Danish well Luna, operated by Noreco, which is located approximately 70 kilometres away. The equipment there, the Maersk Resolve, requires connection to a a specialist stimulation vessel but must also wait until weather conditions allow for a safe connection.
"The rig move will require a suitable weather window to undertake the short tow to the Luna location and subsequent positioning for drilling operations," a statement for Xtract says.
Xtract is targeting between 35mmbbls and 153mmbbls net resources to Xtract at the Luna prospect on the Rotliegendes reservoir.
The company says that it is confident that the delays will not severely affect operations and will not cause a delay.
"I am confident that both processes are on track, and look forward to updating the market in due course," Peter Moir said.