Ithaca Release not as PessimisticThis NR is certainly conservative but not that it states that the field is extensive and gas is movable throughout the field. Different take than the Reuters NR.
Ithaca Energy Inc - Norvarg Appraisal Well Results
ABERDEEN, SCOTLAND--(Marketwired - Jul 31, 2013) - Ithaca Energy Inc. (TSX: IAE)
Not for Distribution to U.S. Newswire Services or for Dissemination in the United States (: IAE) Ithaca Energy Inc. Norvarg Appraisal Well Results 31 July 2013 Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) announces that the appraisal well (7225/3-2) test programme on the Norvarg discovery located in licence PL535 in the Norwegian sector of the Barents Sea has been completed. The appraisal well was drilled approximately 275 km north of the Hammerfest LNG plant on Melkoya, in a water depth of 377 metres, to delineate the Triassic Kobbe Formation of the Norvarg gas discovery. Two formation tests were carried out in the upper and lower parts of the Kobbe Formation, with the well flowing at a maximum gross production rate of 175,000 standard cubic metres of gas per day (approximately 6.2 million standard cubic feet per day) on a 52/64-inch choke. Extensive data acquisition, wire line logging, coring and sampling has been carried out. The well has also been completed with down hole gauges capable of transmitting data after abandonment, which will give further information about the extent of the reservoir. The Norvarg appraisal well was drilled to test the eastern segment of the structure and to assess the quality and productivity of the Kobbe reservoir. The results of the appraisal well have confirmed the extensive nature of the Norvarg discovery and the presence of movable gas throughout the Kobbe reservoir, with no water contacts seen. As predicted the quality of the Kobbe reservoir is variable and further analysis is required to confirm the productivity of some of the reservoir intervals. Work will now be undertaken by the partnership to analyse and interpret the acquired data and evaluate the estimated recoverable hydrocarbons on the structure and potential future development options. Moveable gas identified in the deeper levels of the reservoir than those in the exploration well will be taken into account in the evaluation of the potential reserves. The well was drilled to a vertical depth of 2171 metres below sea level and terminated in the Klappmyss Formation in the Early Triassic. The well will now be permanently plugged and abandoned. This is the second well on PL535. The licence was awarded in the 20th Licensing Round in 2009. Well 7225/3-2 was drilled using Ocean's Leiv Eiriksson semi-submersible rig. The partners in the licence are Total E&P Norge (Operator, 40%), North Energy (20%), Ithaca Petroleum Norge (13%), Statoil (10%*), Det Norske (10%*), and Rocksource Exploration Norway (7%). * Pending government approval.