Ann: Successful connectivity result from SNE-6 appraisal well, page-5

The SNE-6 well has been highly successful with excellent flow rates recorded from the Upper Reservoirs in the SNE Field, and connectivity of these reservoirs has been established with the SNE-5 well.

By achieving connectivity with the SNE-5 well, the SNE-6 well has successfully addressed the remaining key objective of the SNE field appraisal program.

The SNE-6 well was completed ahead of schedule and under budget following drilling, logging and Drill Stem Testing (DST) and will now be plugged and abandoned as planned.

The drill rig, Stena DrillMAX, is now moving to the FAN South-1 exploration well location.

The SNE-6 well, along with the previous successful SNE-5 well, formed part of an interference test designed to demonstrate connectivity within the Upper (400 series) Reservoirs. Pressure data from SNE-6 immediately confirmed good connectivity with SNE-5 and accordingly a short, but highly successful, DST was performed.

The DST produced the following results:

• The main reservoir units, pressure data and fluid contacts are in line with previous SNE appraisal wells
  
  
• Multiple samples of oil were recovered during the DST and analysis indicates oil of similar quality to previous wells
  
  
• Two DSTs were conducted within the Upper Reservoir units
  
  
• DST#1A flowed from an 11m interval at a maximum rate of ~4,700 barrels of oil per day (bopd) on a 60/64” choke. A 48 hour main flow period was performed at ~3,700 bopd on a 52/64” choke.
  
  
• For DST#1B an additional 12m zone was added and the well flowed at a maximum rate of ~5,300 bopd on a 64/64” choke, followed by a 24 hour flow at an average rate of ~4,600 bopd on a 52/64” choke.
  
  
• Pressure data from SNE-6 has confirmed that the Upper Reservoirs are connected with SNE-5, ~1.6km away.

Excellent flow rates were observed with the SNE-6 DST. FAR’s preliminary analysis of the data is consistent with pre-drill geological modelling and indicates that the SNE-5 and SNE-6 wells are sufficiently connected to optimise production of the S480 reservoirs with water flood enhanced recovery techniques.

Further analysis will be performed once interference test data has been collected from all the observation wells (including SNE-3 and SNE-4), to determine the impact on modelled reservoir architecture, recoverable resource base and forward development plan.