Operations > Nigeria > Umusadege Field
HISTORY
The Umusadege oil field is an onshore oil and gas field located in Delta State, Nigeria. Three wells were drilled and cased in the field between 1974 and 1980 and a 3D seismic survey covering the fields was acquired in the early 1990s. The field has substantial hydrocarbon reserves potential as evaluated from the existing wells and 3-D seismic data.
OVERVIEW
The Umusadege farm out area (3,771 gross acres) containing the Umusadege oil field located within Oil Prospecting License (OPL) 283 was formally awarded to Midwestern Oil and Gas Plc. (“Midwestern”) as Operator and Suntrust Oil Limited (“Suntrust”) on February 25, 2003 at a ratio of 70:30 respectively.
Mart entered into an agreement with Midwestern on April 27, 2006 and with Suntrust on May 22, 2006 setting out the commercial framework under which Mart participates in and provides technical and financial services to Midwestern and Suntrust.
The Umusadege field is a multiple-horizon hydrocarbon reservoir situated in the North Central area of the Niger Delta basin. The field contains 13 known reservoirs.
PRODUCTION
In June 2007, Mart, Midwestern and Suntrust re-entered the Umusadege-1 (“UMU-1”) well and production tested two of the thirteen oil-bearing sands that have been identified in that well. The UMU-1 well was completed for dual-zone production via a single 3 1/2” tubing string with production commencing in April 2008.
In the first quarter of 2009, Mart, Midwestern and Suntrust completed drilling and testing the UMU-5 well, immediately adjacent to UMU-1, which was designed to produce oil from two of the reservoirs that were encountered in the UMU-1 well that had not yet been produced. The UMU–5 well tested oil in both the VII and IX sands.
Commercial production from UMU-5 commenced on April 14, 2009 from the IX sand and the well has produced approximately 1,445,000 barrels as at May 2011 with average production of approximately 2040 bopd as of May 2011 based on calendar days.
A phased development plan was implemented using results from the initial development wells and early field performance data to optimize the full development of this multi-reservoir field. Mart and its partners installed 10,000 bopd early production facilities (“EPF”) in 2008. A permanent central production facility (“CPF”) has been installed to replace the EPF, with further expansion on-going to reach a capacity for the full field development (30,000 – 35,000 bopd) from the Umusadege field. Operating costs are expected to be substantially reduced once the CPF is further enhanced and as production increases.
Crude from the Umusadege field is being purchased by Ente Nazionale Idrocaburi (ENI) under a Crude Sale and Purchase Agreement and exported through the Brass Terminal.
Development continued on September 2010 with the UMU-6 well which reached its final total drilling depth of 8,750 feet on November 6, 2010 and began production in December 2010. The UMU-6 well has been completed using a dual-tubing string configuration with the XVII and XVI (b) sands completed in the 3 1⁄2 inch tubing string and the XIII(a) sands completed in the 2 7⁄8 inch tubing string UMU-6 has given the joint venture significant growth and increase in production and its success has led to further expansion into other opportunities within the Umusadege field.
Following the UMU-6 well, UMU-7 well commenced drilling on February 2011 and reached a final total drilling depth of 8,715 feet on March 11, 2011 and began production May 2011.
The UMU-7 well has been completed using a dual-tubing string configuration with the XVI (a) and XIV sands completed in the 3 1⁄2 inch tubing string and the XII(c) and X sands completed in the 2 7⁄8 inch tubing string. As a result of the completion technology used, the four zones that have been completed can be opened and closed at any time. Cumulative production from UMU-7 to date is 79,951 bbl. Production for the entire Umusadege field by May 2011 averaged 10, 525 bopd. The Umusadege field produced over 3,000,000 million barrels as of May 2011.
Following an independent review of the Umusadege field effective December 31 2010 by RPS Energy Canada Ltd., Mart’s gross total proved reserves (before deduction of royalties) increased to 9.6 million barrels. The company’s gross proved plus probable reserves were 12.9 million as at December 31, 2010.
FUTURE PROSPECTS AND DRILLING CAMPAIGNS
The UMU-8 was drilled and reached a final total drilling depth of 8593 feet in mid July 2011. Open-hole wireline logs have been run with results indicating a total of 16 hydrocarbon bearing sands. The well logs indicate a cumulative gross pay of approximately 385 feet in the 16 sands encountered by the well.
Preparations are being made to drill the UMU-9 well. A second three-slot drilling pad was constructed and is located south east of the UMU-6, 7, 8 drilling pad. It is anticipated that the NRG Rig 201 will move to this second pad after testing of the UMU-8 well is completed and drilling operations will commence on the UMU-9 well. Two additional wells may be drilled from the UMU-9 pad.
Additional development and appraisal wells are anticipated to fully exploit the reserve potential of the Umusadege field.
- UMU-9: Targeting another culmination to the main Umusadege producing structure. Its potential could significantly improve our proved, probable and possible reserve estimates. Drilling anticipated to begin in November 2011 and production is expected to commence on February 2012.
- UMU-10: Anticipated drilling begins end of Q1 2012 – early Q2/12
- UMU-3: Potential future horizontal well re-entry for sand VI
- UMU-4: Potential future horizontal well re-entry for sand VIII