Ophir Energy plugged and abandoned a step-out exploration well, B08/38-11 in the B08/38 concession, Gulf of Thailand, on 21 October 2018, with oil shows. Located 5 km north of the Bualuang Alpha and Bravo platforms, the well was drilled to a TD of 2,328 m by Seadrillâs âWest Cressidaâ J/U, after the completion of three wells for the Phase IV development drilling campaign in the Bualuang field. The B08/38-11 well was targeting Middle Miocene clastics, the producing reservoir in the Bualuang field.    The well was spudded on 12 October 2018. The drilling location was identified by a 3D OBC seismic survey which was acquired in 2015. The Bualuang North prospect was estimated to contain 36.7 MMbbl (P50) of OIIP with well cost is around USD 4.8 million.     The Phase IV development drilling campaign commenced on 8 August 2018, and is expected to include up to 14 wells and an expansion of the water disposal capacity on the Bravo platform. Following the decision of Phase IV development, 2P reserves for the field have increased by 13% to 49.4 MMboe. Auditor ERC Equipoise forecasts that the development will convert 9.2 MMbo of contingent resources (2C) into proved and probable reserves (2P) to the field.    Ophir Energy became operator and 100% interest holder in the B08/38 concession following the acquisition of Salamander Energy, effective on 2 March 2015.    Background Information    Bualuang field located in the west of the Gulf of Thailand in water depths of approximately 60 m, 60 km west of the Chevron-operated fields and Mubadala-operated Jasmine oil field in the Pattani Trough. The field has a Miocene, fluviolacustrine, sandstone reservoir with porosity of around 30% and permeability of up to 1 Darcy.     The original operator SOCO drilled discovery well Pornsiri 1 on July 1997. The well targeted the same upthrown fault block as Sun Oil's B7/32 2 discovery (1993). The well was drilled to a TD of 1,820m and logging indicated that the Miocene sandstones were oil bearing but the objective Rat Buri limestone was devoid of hydrocarbons. Pornsiri 1 was suspended with the intention to re-enter and test at a later date.     Pornsiri 2 (August 1997) was classed as a step-out well and was located some 20km north, of the original well. It was spudded on 13 August 1997 and was drilled to a TD of 1,372m, but failed to encounter significant hydrocarbons however and was abandoned dry on 19 August 1997. SOCO then returned to the main structure and drilled Pornsiri 3 (September 1997). This well reached a TD of 1,280m and confirmed the reservoir intersected by Pornsiri 1. The well was tested, but only flowed 50 bbl of water and minor oil, and the well was subsequently suspended, with the intention of possibly re-entering it to be tested in the future.     The Bualuang field was put onstream from one well, Bualuang 5 (BA-05), drilled from the âAlphaâ platform, on 27 August 2008. Following a period of multi-rate testing of this well, other five producers were brought on-stream sequentially with production expected to rise to a peak rate of approximately 8,000 bo/d from the field.    A second wellhead platform (âBravoâ) was installed and commissioned in November 2012. The âAtwood Makoâ rig was relocated to the platform around mid-November 2012 and was expected to start operations shortly thereafter, for an extended development drilling programme. The rig previously conducted a short development drilling campaign (likely including two workover wells) from the Bualuang Alpha platform, starting around 20 September 2012, and then drilled two exploration wells (Bualuang NW 1 and Bualuang NW 1ST) in the Greater Bualuang area.    The field produced its 25 millionth barrels oil in October 2015, which is a significant achievement given the field was originally projected to contain only 14 million barrels of 2P reserves. The field produced at a rate of 12,500 bo/d in 2014, which is the highest rate in fieldâs history. First half output (9,900 bo/d) was negatively affected by a six-week shut down, but performance in the second half exceeded expectations, with 15,100 bo/d.     Salamander has been also planning for step-out exploration drilling in the Bualuang area, with one well targeting the southern culmination of the Bualuang East Terrace structure. The well would target multiple Miocene sandstone reservoirs of the âT2â, âT4â and âT5â levels. In-place prospective resources are estimated between 5 and 25 MMbo. The East Terrace South well could also potentially be sidetracked to explore an analogue prospect further south (East Terrace Far South). EIA approval for the well was in place as of mid-2014. If proved to be commercially viable, the prospects could be drained by the âCharlieâ platform.    On 11 September 2016, the field production rate increased to 9,700 bo/d while in process of ramping up, as compared to before commissioning of the new facilities. The project total cost was USD 20 million and is expected to increase Net Present Value (NPV) of Bualuang by USD 80 million and payback within 12-18 months.    On 25 January 2016, the operator completed production optimization activities on the oilfield, resulting in an increase in daily oil production. The operator reported that the production averaged 13,000 boe/d on a full year proforma basis. This exceeded guidance with both the Bualuang and Sinphuhorm fields producing ahead of budget.     In September 2016, Ophir completed water debottlenecking program within 5 months, with a final tie-in to Bualuang field. The production from Bualuang had been suspended for 10 days to give way to the upgrading works and subsequently resumed on 2 September 2016. Ophir Energy tested an instantaneous rate of 9,700 bw/d at a water disposal rate of 64,000 bw/d, an increment of 1,400 bw/d compared to prior month.    The initial phase of the Phase IV drilling consists of operations on five wells from the âAlphaâ and âBravoâ platforms, comprising three re-drills using existing slots and two well workovers. The first oil from Phase IV is expected in the second half of 2018.     To enable further development of additional resources, the operator is also planning to install the third wellhead platform (âCharlieâ) in 1H 2019. The new platform will consist of a 12-slot wellhead structure, bridge-linked to the existing Alpha and Bravo platforms, and equipped with additional power generation.    In mid-May 2017, Ophir announced that the Final Investment Decision (FID) was obtained to commence the drilling campaign project that is forecast to cost USD 145 million from 2018 until 2020. In January 2018, the field production has dropped 6% to 7,800 bo/d, compared to the previous yearâs average. After the completion of the phase IV drilling program, production in the second half of 2018 is expected to average over 9,000 bo/d.    The previous infill drilling campaign in the Bualuang field was completed on 6 August 2017. The operator managed to offset the predicted natural well decline from four new wells which contributed to 1,400 bo to the field daily production. The field managed to maintain its production at an average of 8,300 bo/d across 2017.
B08/38-11 in the B08/38 concession, P&A with oil shows.