IOG’s Southern North Sea well to come online this month

UK-headquartered IOG plc is planning to bring the second Blythe production well on stream this month, despite losing 34 days to the well control event.

In an update issued following well clean-up and testing operations that took place at the Blythe H2 well from 4 to 7 June, IOG plc revealed that the well was drilled to a total depth of 13,400 ft MD and initial data indicated better reservoir quality in this wellbore in comparison to H1.

H2 is now set to be handed over for final hook-up and commissioning and remains expected to be brought onstream this month. Once its production is on, H1 is planned to be shut in.

The H2 well has flowed at a maximum dry gas rate of 22.8 mmscf/d and 280-336 bbl/d condensate at the export pipeline pressure of 1250psi, with no formation water observed, which is said to be an improvement on the current H1 rate, but below the expected initial H2 gas rate of 30-40 mmscf/d.

According to the UK company, a potential mechanical blockage downhole is constraining flow and equipment will be mobilized in the coming weeks to assess and rectify this potential blockage. The H2 well will be shut in during these operations.

“The Blythe H2 well has tested at a maximum gas rate of 22.8 mmscf/d at the pipeline export pressure, appearing to be constrained by a suspected downhole mechanical blockage,” said Rupert Newall, IOG’s CEO.

“H2 has been executed safely and efficiently considering that 34 days were lost to the well control event and remains on track to come onstream later this month following final hook-up and commissioning.”

IOG expects the final H2 well costs to be approximately £15 million net.

To remind, the Blythe H2 well was spudded on 5 March with Shelf Drilling’s Shelf Perseverance (former Noble Hans Deul) jack-up drilling rig and was drilled to the Basal Zechstein sequence in April when a potential delay to the previous timeline was revealed due to encountering an abnormally pressured gas and oil influx with associated drilling fluid losses while drilling through the Hauptdolomit formation within the Zechstein.

The well is part of the IOG-operated Saturn Banks Project – Phase 1 in the UK Southern North Sea, sanctioned in October 2019, which covers the Blythe, Elgood, and Southwark fields.

The first two fields – Blythe and Elgood – were brought on stream in mid-March 2022. IOG holds a 50 per cent stake in the project, while CalEnergy Resources holds the remaining half.