RNS Number : 2812U
Irvine Energy PLC
12 May 2008
Irvine Energy plc / Index: AIM / Epic: IVE / Sector: Exploration & Production
13th May 2008
Irvine Energy plc ("Irvine" or "the Company")
Irvine Energy Operations Update in Kansas, Oklahoma and Niobrara
Irvine Energy plc, the AIM listed oil and gas exploration and production company,
provides an update of its continued progress and
development at its Kansas, Oklahoma and Niobrara project areas.
Overview
* Rapid progress being made across all three areas
* First Kansas oil well encounters oil in Arbuckle formation with live oil shows and
confirmed oil saturation - second well
commenced
* First Woodford vertical shale tests gas to surface at high pressure - pipeline is
currently being laid to connect to main gas
sales line
* First horizontal Woodford shale well also scheduled to commence drilling in late
May
* Evaluation of the Hartshorne coal bed methane continues with targets identified
* A further 8 wells put on stream at Niobrara raising number to 18 wells available to
sales - 23 targeted for early summer
Irvine Managing Director Aaron Close said, "We are making rapid progress across the
portfolio, both in the raising of production levels
and the confirmation of oil and gas resources which we aim to convert into the reserve
categories in the near future. The drill programme
at Kansas is developing with a second well scheduled to commence and we continue to ramp up
production levels as we target over 60 producing
wells at Niobrara by end of 2009.. Looking towards the future, with the increase in
production coupled with the current high oil prices,
this is an incredibly exciting period for Irvine as we increase the pace of our transformation
into an established oil and gas producer."
Kansas Project
The Rock 1-5 commenced drilling on 29 April, 2008 and was successfully drilled to the
Arbuckle formation at 2,974 feet. Live oil shows
were seen in the cuttings and petrophysical analysis confirmed oil saturation. Production
casing was run on 7 May, 2008 and the well is
currently being prepared for completion. The rig was then moved to the Rock 1-31 location on
12 May for a further Arbuckle oil test on a
separate structure. The Rock 1-31 will be the second well tested in a continuous four well
drilling programme on the Rock 3-D.
Acquisition of data from the second phase of the Ayres 3D shoot has been completed and is
now being processed. Results from the
interpretation of the first phase are expected in June with locations planned soon afterward.The Udal 3D shoot, which is the largest of the
initial three 3D surveys, is currently in progress and acquisition of data should also be
completed by the end of June 2008.
Oklahoma Project
Irvine's first Woodford shale well is scheduled to be fracture stimulated by the end of
May 2008. The Farrow 1-24 is a vertical well
that was perforated and acidized on 21 April and responded with gas to surface and a shut-in
surface pressure of 550 pound-force per square
inch gauge ("psig"). A pipeline is currently being laid to connect this well to the main gas
sales line. It is expected that the fracture
stimulation treatment should significantly enhance production rates from this well and success
from this well will begin the process of
moving Irvine's resource potential into the reserve categories.
In addition, drilling at Irvine's first horizontal Woodford shale well is also scheduled
to commence by the end of May. The Jones 1-5H
will target the Woodford shale at a vertical depth of 3,700 feet with an initial pilot hole to
obtain open hole logs. The well will then be
drilled laterally through the Woodford shale with a total horizontal length of 2,100 feet. The
horizontal lateral will be completed with a
large multi-stage slick water fracture treatment. Schlumberger Well Services is being
consulted on the completion design.
Evaluation of the Hartshorne coal bed methane resource continues and mapping of the coal
is complete. Drilling locations have been
identified and are currently being planned in Hughes County, Oklahoma. The Hartshorne coal is
laterally pervasive and is encountered at
approximately 2,200 feet. Development of the Hartshorne will most likely be with horizontal
wells commencing in H2 2008. Netherland Sewell
and Associates are in the process of evaluating the resource potential in the Hartshorne coal
and quantifying the volume of natural gas net
to Irvine.
Niobrara Project
The Niobrara Project came on line on April 28, 2008 with 10 wells going to sales and a
further eight wells are now online to commence
production. Due to this recent increase in sales line pressure, the current leased compressor
is no longer adequate. Irvine will replace the
compressor in the coming weeks to allow all 18 wells currently capable of producing to go to
sales. Five additional wells are in the process
of being perforated and fracture stimulated over the next few weeks and will be brought on
line in early summer, bringing the total number
of producing wells to 23. Current planning is in place for a further 40 new wells to be
drilled in the near future.
* * ENDS * *
For further information please visit http://www.irvineenergy.com or contact:
Michael Frayne Irvine Energy plc Tel: +44 (0) 20 7766 7500
Aaron Close Irvine Energy plc Tel: +1 214 908 6384
Tim Redfern Evolution Securities Tel: +44 (0) 20 7071 4300
Hugo de Salis St Brides Media & Finance Tel: +44 (0) 20 7236 1177
Victoria Thomas St Brides Media & Finance Tel: +44 (0) 20 7236 1177
Notes:
Irvine Energy plc is an AIM listed company focussed on the development of onshore
conventional and unconventional oil and gas projects
in the USA. The Company currently has exploration and production projects in Kansas and
Oklahoma, which it is operating and developing in
conjunction with its joint venture partner Metro Energy Group ("Metro").
It is the Company's objective to become a significant player in both the conventional and
unconventional USA oil and gas markets, by
building a solid portfolio of assets within the highly prospective Kansas/Oklahoma region.Irvine has an aggressive growth strategy in place
with a work programme to advance its production projects and upgrade its contingent resources
to reserves. The Board believes that by
assembling a combination of conventional and unconventional plays, it provides the Company
with a balanced low risk, high capital efficient
development programme.
This information is provided by RNS
The company news service from the London Stock Exchange
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