"Shell achieving super-charged oil flow rates" Southern Africa’s exploration circles are abuzz with talk of Shell achieving super-charged oil flow rates from production tests it has been running on its ground-breaking Graff-1x discovery well offshore Namibia.
Namibia is probably the world’s top exploration hot spot, as two discoveries by Shell — Graff and Jonker — and TotalEnergies’ Venus find pave the way for a surge of industry interest in the long-neglected Orange basin and set the scene for what could be at least three major projects.
No full-scale oil and gas production tests were carried out when the original discovery wells were drilled, so both Shell and TotalEnergies are in the midst of carrying out these vital operations which will help determine if their deepwater finds are commercially viable.
Namibia is a core exploration play for Shell and, according to research carried out by Barclays, could account for up to 6% of the supermajor’s market capitalisation if it finds 8 billion barrels of oil in place with a value of $10 per barrel of oil equivalent.
Using the semi-submersible rig Deepsea Bollsta, Shell re-entered the Graff-1x well in Block 2913A in early March and it is understood that drill stem tests carried out in recent weeks generated surprising results, with oil flow rates far exceeding expectations.
One well-placed industry source said that when drillers opened the downhole choke, oil “came at them like a train”, which meant care had to be taken to control the flow.
Describing one of the tests, the source said the flow rate was “big”, with the oil coming “hard and fast”.
Commenting on the drilling operation, a Shell spokesperson said: “We have successfully re-entered the Graff-1X well for appraisal and testing. Interpretation of the test results is ongoing with initial results available in June.”
Drill stem tests are used to assess a reservoir’s pressure and permeability and can last minutes or days.
They are used to determine pressures in a reservoir, including how quickly pressure builds up once the oil has been flowed to the drilling rig.
It is not known how many separate tests Shell has carried out to date on Graff-1x, exactly when they were undertaken or whether a high flow rate inevitably means a discovery is commercial.
However, two other exploration-well watchers confirmed that hydrocarbons flowed so surface — which is a positive sign — noting that gas flares were reported from the semisub in late April and early May.
To date, it is understood that drill stem tests were carried out between 30 April to 1 May and between 3 and 7 May.
One source said the flaring is “a good indication that the Graff reservoir flows, which is great”.
However, another source noted that while good flow rates would be welcomed by Shell, Graff's geology is more complicated than that of Venus or Jonker, which could create development challenges.
A fourth source also highlighted that, assuming a development is commercial, the supermajor will still have to find a way to deal with Graff's gas, while at the same time commercialising its oil resources.
Once the Deepsea Bollsta wraps up work at Graff-1x it will likely mobilise to drill another exploration well in the block — perhaps on the Lesedi prospect — although Shell has not confirmed this.
Graff-1x and the nearby La Rona-1x discovery are both Upper Cretaceous finds, while Jonker-1x is a Middle Cretaceous reservoir, which TotalEnergies hit with its Venus-1x probe in adjacent 2913B.
Shell — headed by chief executive Wael Sawan — and QatarEnergy both have 45% stakes in Block 2913A and adjacent 2914B, with Namcor on 10%.
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