By OGJ editors
HOUSTON, Oct. 16 -- Temporary natural gas production facilities have been installed on EXCO Resources Inc.'s Miami Corp. No. 35 well in South Pecan Lake field, Cameron Parish, La., following a loss of control Oct. 1 during workover operations to restore production. Well control specialists were called in to assist with well control operations.
The incident resulted in the release of about 20 MMcfd of natural gas and 2,800 b/d of formation water, but no injuries or fires resulted, EXCO said. Since Oct. 1, well-control expenditures have been estimated at $900,000.
Gas from the well is now being sold, with sales volumes currently totaling 15 MMcfd. An estimated 2,350 b/d of produced water is being routed to EXCO disposal wells. The company said it could not predict how long these production volumes would continue.
Prior to commencement of the workover, the well had been shut in for several years as a result of downhole wellbore problems. The current condition of downhole tubulars precludes the well's being controlled safely, and a relief well will be required at a cost of $3.5-4 million. Mobilization and drilling of the relief well is expected to take 40-50 days. Sales of natural gas are expected to continue throughout the drilling operations as long as it is safe to do so, EXCO said.
As of Jan. 1, the well's proved natural gas reserves had been 780 MMcf, but because of the volumes of water being produced and the possibility of increased water volumes over time, the remaining natural gas reserves from this well are uncertain and difficult to predict, the company said.
EXCO holds a 90% working interest and a 74.9% net revenue interest in the well.