Mechanical failures force Providence to suspend drilling at development well
The temporary stoppage at the X12 well is due to operational problems, led by mechanical and equipment failures.
Singleton has been the firm’s sole producing asset and production levels will not be hampered by this development, given X12 is in the development stage.
Singleton has a production level of around 750 barrels of oil equivalent per day.
Providence’s technical director, John O’Sullivan said the X12 well is the most ambitious and challenging to have been drilled at Singleton.
“Notwithstanding the operational problems experienced, the well has geologically confirmed our reservoir depth model for the south-west flank of the field,” he said.
Recent progress was deemed insufficient to meet planning and rig availability timelines, leading to the temporary suspension of drilling.
“This outcome, while frustrating, doesn’t impact current production rates,” Mr O’Sullivan said.
“The Singleton project has taken a good deal of management time and capital. It’s also note-worthy that it is the first time for a while that operational news has been disappointing.
“However, it’s important to note that the overall valuation impact of this programme, on the group, is minimal,” said Davy Stockbrokers’ analyst, Job Langbroek.
Meanwhile, Circle Oil, which has been pumping out positive news from Morocco and Egypt — will begin exploration drilling in Tunisia before the end of this year.
Petroneft reported full- year 2011 results, showing a $10m (€7.89m) increase in net losses, to $17.9m; but a jump in revenue from $5.15m to just over $29m.
The losses were due to impairment charges on oil and gas properties, worth $5m, and an increase in foreign exchange losses on loans to a subsidiary.
