Burlington Resources Inc., Houston, and Calgary-based Talisman Energy Inc. said Tuesday that they have submitted a development plan for the MLN field in the Menzel Lejmat Block 405a in Algeria's Berkine basin. Wholly owned subsidiaries Burlington Resources Algeria Ltd. and Talisman (Algeria) BV, as well as Sonatrach, the national oil and gas company of Algeria, have applied for an exploitation permit for the block.
The companies have devised a development plan for the field. Tests of the MLSE-4 and MLW-2 wells in the block, as well as prior results and studies, are the basis for the exploitation permit application, said Burlington Resources.
The MLSE-4 well, located 2.5 miles west of MLSE-1, flowed on four separate tests, with the best individual rates being 5,078 b/d of oil from the Triassic and 68.5 MMcfd from a test in the deeper RKF reservoir. Total combined rates of more than 11,000 b/d and 100 MMcfd were achieved.
Burlington said the MLW-2, a 3.7-mile step out from MLW-1, flowed 4,125 b/d of oil from the main Devonian sandstone. A third recent well, MLNW-4, has been deemed noncommercial after encountering the objective zones below the MLNW field hydrocarbon contact.
The first phase of development will concentrate on construction of a central production facility and an oil export pipeline. This phase is anticipated to produce an initial 16,000 b/d of oil by mid-2002 from the Triassic and underlying Devonian reservoirs. Phase I development is expected to cost about $150 million.
Further investment on the MLC, MLN-Phase 2, MLNW, and MLW field satellites is planned following the installation of the central production facility, with production expected to increase to about 40,000 b/d by 2004 pending government approval.
Burlington's subsidiary holds a 65% working interest in the area through a production-sharing contract with Sonatrach and Talisman, whose subsidiary holds the remaining 35% interest. Sonatrach has the option to participate in development of and production from commercial discoveries. Burlington Resources and Talisman are entitled to recover exploration costs from production revenues.