what happened to b6st1

ROC has downgraded the resrves at BMG. They have indicated that the revised reserves are based on what oil can be extracted economically from the current wells, currently producing 6,000 BOPD, to when producion is expected to fall to the breakeven point of about 3,000 POPD in 1012.

In the latest quarterly they refers to:

"During the Quarter, the Basker-7 ("B7") development well was tied into the Basker-A manifold, production testing was completed and the well was successfully brought online. The optimisation of production configurations from four wells (B2, B3, B7 and Manta-2A) continues."

B6ST1

Production from the Basker 6ST1 well commenced on 5 September 2008 and stabilized at over 5,000 BOPD, with a favourable gas oil ratio and zero water. (ROC's 2008 3rd Quarter Report). This well produced strongly in Qtr4 2008. However, The Basker 6ST1 well was shutdown on the 23 March due to a subsea flowline blockage with work to clear the blockage continuing at the end of April 2009. (ROC's 2008 4th Quarter Report).

In ROC's 2nd Qtr report, they said "B6ST1 remained offline during the Quarter due to a subsea flowline blockage. While operations to clear the blockage have indicated communication across the flowline was established in late May, the well cannot be fully tested until after the current drilling and workover programme is completed."

However, I cannot find any mention of this well in subsequent reports. Given that it was producing 5,000 BOPD prior to the apparent blockage, it would be good to get an update on the status of this well.

I note they never mentioned it in their 4th Qtr Rpt referring to only "optimisation of production configurations from B2, B3, B7 and Manta-2A".


B5

No mention of B5 either in their 4th quarter Report.

On the 16 June 2009 ROC announced that "Drilling operations on the Basker-5 ("B5") well workover began on 15 June. The B5 workover is planned to isolate water production from several reservoir zones and to improve BMG production capacity by approximately 800 BOPD (AZA: 240 BOPD)."

In ROC's 2nd Qtr Rpt they said:

"The drilling and workover programme commenced during the Quarter with the Basker-5 ("B5") well workover, which was designed to isolate water production within the well through the installation of a cement plug to isolate lower reservoir sands. The production log acquired during the workover to confirm the source of water inflow showed a more complex combination of water and gas flowing within the well. The workover was suspended and the isolation procedure is under review. Subject to further assessment of the log results, a revised B5 workover may be undertaken at the end of the current drilling campaign."

I find no mention of it since then.


B6

No mention of B6 either in their 4th quarter Report either.

In ROC's 2009 1st Qtr Rpt they refer to B6 saying:

"Oil production from the Manta 2a and Basker 6 wells declined as anticipated during the Quarter due to increasing produced water volumes."

I can find no mention of B6 again in ROC's Qty Rpts or operation updates.


Given the nature of the downgrade at BMG (i.e. projection of existing production falling to breakeven level), I would have thought that accounting for the fall in production should be important, particularly for B6ST1 which had a production flow alone 12 months ago equal to what they are now forecasting for the whole field in 2010.


I have gone through all the quarterlies and hope I havn't missed explanations for these wells not been mentioned in ROC's 4th Qtr Rpt but given the importance of production flows thought it worth highlighting. (Note: Higher production levels not only increases the amount of oil extracted per year but may also effect the economic life of the project)

Regards

SP