Decklar Resources Inc. expects to produce from two fields in Nigeria’s Niger Delta region by yearend following signing of a share purchase agreement to participate in Asaramatoru oil field.
Per the agreement, Decklar agreed to purchase all outstanding shares of Purion Energy Ltd., which has a risk finance and technical services agreement (RFTSA) with Asaramatoru operator Prime Exploration and Production Ltd.
The field lies in onshore block OML 11—where Decklar is developing Oza oil field—near Bonny oil field and Bonny export terminal (OGJ Online, May 28, 2021). Two historical wells on site, AST-1 and AST-2, hold near-term production potential, the company said in a July 14 release.
Formerly operated by Shell Petroleum Development Co. of Nigeria Ltd. (SPDC), Asaramatoru was discovered in 1973 with the AST-1, which discovered 10 hydrocarbon bearing reservoirs. AST-2 was drilled by SPDC in 1989 and discovered additional oil reservoirs in a separate fault block. The two wells were never placed on production and both wells were suspended after drilling and completion activities. Data available includes wireline well logs, test data, and a 3D seismic survey conducted in 1996.
Separately, Purion entered an RFTSA with Prime with respect to the 51% equity interest that was awarded to Prime in Asaramatoru field. Purion is also seeking to enter an RFTSA with Suffolk Petroleum Ltd. with respect to Suffolk’s 49% interest in Asaramatoru field.
The field was awarded to Prime and Suffolk by the Federal Government of Nigeria in 2004 as part of the first Marginal Field Program. It is operated and owned 51% by Prime and owned 49% by Suffolk.
Prime and Suffolk reentered the existing two wells and commenced initial production testing activities in 2014. The wells produced an average of 2,700 b/d of oil during intermittent production over 3 years. Crude was barged to offshore infrastructure for storage and export. The two wells have been shut in since late 2018 due to lower oil prices and logistics connected with barging and export activities, and limited storage facilities at the well locations.
Decklar and Prime’s next planned stages for development include pulling existing tubing from the wells, running cement bond logs and cased hole reservoir saturation logs, and running new dual-string completions. The plan is to drill an additional seven wells and install production facilities, flow lines, and export facilities in phases as development progresses.
The full field development plan will include expansion of the processing infrastructure to enable handling and processing of up to 20,000 b/d of crude for the expected peak production levels including installing a 10 km export flowline from the field to a tie-in point at the Oloma flow station, which is connected to the Bonny export terminal.