Miller restarting Redoubt Shoal wells at higher oil rates

A subsidiary of Miller Energy Resources Inc., Knoxville, said its RU-2A sidetrack well in Redoubt Shoal field in Alaska’s Cook Inlet has produced at a 21-day average of 1,314 b/d of oil with 15% water cut.

Oil production has increased and water cut decreased during the first 3 weeks on production from the initial 24-hr rate of 1,281 bbl of oil and 19% water cut with no adjustment of electric submersible pump speed, the company noted.

The first 3 weeks of production data and bottomhole flowing pressure for RU-2A are very similar on a percentage basis to the post workover data from the company’s RU-7 oil well. RU-7 was the first reentry that Miller Energy brought back online on its Osprey platform at an initial production rate of 250 b/d of oil in July 2011.

RU-7 is making 200 b/d of oil and has declined from its announced initial production at an annual rate of 12% compared to the 30 b/d and 27% decline rate recorded under the prior operator. RU-7 has shown an increase in bottomhole flowing pressure from the 1,200 psi reported by the earlier operator to more than 2,200 psi for the last 2 years after Miller Energy’s rework.

During the last 3 months of production under the previous operator, the RU-2 well had bottomhole flowing pressures of less than 1,000 psi with a 10% oil cut and less than 100 b/d of oil compared with Miller Energy’s current 2,350 psi at an 85% oil cut and 1,314 b/d of oil.

During the last year, Miller Energy has restored production from Redoubt Shoal field to more than 1,900 b/d of oil equivalent. By altering the completion designs used by the previous operator, Miller energy has increased production from each well it has returned to production.

Miller Energy is continuing its Redoubt Shoal redevelopment plan and developing its other Alaskan assets and has three rigs working.

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