Serica Energy Share Discussion Threads

[thegreatgeraldo] 13/5/2020 21:21

Cheers SW - pretty deep well....maybe a couple of casing points along the way?

[newkotb1] 13/5/2020 20:59

SW, many thanks

[steelwatch] 13/5/2020 20:50

Wellbore data for 3/29a- 6 (R-3)

Wellbore registration numberWellbore mechanical statusSubarea operator
3/29a- 6Completed (Shut In)
SERICA ENERGY (UK) LIMITED
Licence numberWellbore intentRegulatory jurisdiction
P198
DevelopmentSeaward
Wellbore typeOperators wellbore name
Initialn/a
QuadrantBlock No.Block suffix
329a
Drilling sequence no.Slot numberPlatform letter
6n/an/a
Primary target
SF1
Spud dateDate TD reachedRegulatory completion date
23-NOV-2004 07-FEB-2005 12-FEB-2005
Datum typeDatum elevation (m)
Rotary Table
23
Depth
MD (m)TVDSS (m)
4752
The distance along the wellbore to the horizon intersection point. Measured from 23 (m) above sea level
4726.7
The vertical distance between mean sea level and the horizon level
Ground elevation (m)Water depth (m)
n/a
108.7
Devition typeOverall wellbore conventionality
VerticalInformation unavailable
Well origin countyRegulator ownedRelease date
n/a
The county in which the well origin will be situated.
Information unavailableInformation unavailable
Surface location
Coordinate type
Degrees Minutes Seconds
Datum
ED50
Latitude
DegreesMinutesSecondsNorth South
60656.248North
Longitude
DegreesMinutesSecondsEast West
14323.059East



3/29a- 4 Seaward Completed (Operating) 3 29 4 P198
View Wellbore
View Consents
3/29a- 5 Seaward Completed (Operating) 3 29 5 P198
View Wellbore
View Consents
3/29a- 6 Seaward Completed (Shut In) 3 29 6 P198
View Wellbore
View Consents



enter Quadrant 3 Block 29

[steelwatch] 13/5/2020 20:35

Reservoir depth mentioned here:

[steelwatch] 13/5/2020 20:30

Something else to chew the cud over:

[steelwatch] 13/5/2020 20:30

Something else to chew the cud over:

[thegreatgeraldo] 13/5/2020 19:17

Not much info out there about well depth, although I'm guessing Rhum-3 was drilled around the time the field was developed, 2005/06 ...deeper wells tend to have intermediate casing points? Fishing in a 7 inch hole doesn't strike me as a major problem. Anyway, don't want to labour the point.... sure SQZ have given it plenty of thought before going ahead

[spangle93] 13/5/2020 18:43

TGG - Half an hour of searching has brought me plenty of pictures of bottles of spirits but no Rhum R3 completion design, other than that it's a cased hole in a vertical well. It would be short odds that it's the standard 8.1/2" hole across the reservoir, probably filled with 7" liner given that they would be high rate wells, though 5.1/2" is possible. That would be the slimmest hole.

The downhole completion is cemented in place, so that won't move. Re-completion would refer to the upper completion (tubing).

[steelwatch] 13/5/2020 16:01

tgg - I'm just a lay person like you, but have been googling expandable liners in the HTHP context as a possible element in the recompletion work. Haven't come up with anything definitive as yet.

[thegreatgeraldo] 13/5/2020 13:42

Spangle - I follow the sector, but have not even come close to having hands-on experience, hence the layman tag! ;-#)) Just pointing out that it's not straightforward, even though they're not going in blind. At a gross cost of $20-25 million(?) + parts, probably well worth going ahead.

The concerning part was the second part of the work referred to, " removing an obstruction that is believed to be in place across parts of the downhole completion."....Fishing in a slim lower section was what prompted my question about what was meant by recompletion...

[spangle93] 13/5/2020 11:39

Thanks Steelwatch:
I remember at one stage that the average design life of a mobile rig was 25 years and the average age of the rigs operating in the North Sea was 26 years. The 3rd gen rigs can have equipment added and be upgraded, but the basic size can't be altered, so the modern 5-6th gen rig have more space and facilities.


Dunderheed "I'd say this definitely is capex as opposed to work-over but there may well be advantages either way (deal and HMRC related) that impact that "interpretation" - lol!"
I was trying to be subtle with "usually", but yes, that's about it ;-)


TGG - Having seen your name here, and on the old TMF, for more than 15 years, you're a pretty experienced layman, who has picked up that interventions are never straightforward and rarely overestimated.

Early, Mr Flegg said "“We’re planning to do some preparation work on the well, physically go and cycle the valves and open the well up, probably for the first time in a number of years."

So my interpretation is that the "downhole completion" is the permanent bit across the reservoir", and to achieve the goal, they will unlatch and pull the existing tubing, run in potentially with drill pipe to fish out the obstacle, then either run new tubing or replace the original tubing if still fit for purpose and secure it. It didn't read to me like they would need to re-perforate the downhole completion (making the assumption that it's a perforated cemented liner).

[steelwatch] 12/5/2020 14:38

Spangle - it seems the rig underwent an HPHT upgrade around 2015/16:



Also, extensive work was carried out in the Gdansk Remontowa Shipyard in 2011



see slide 10.

[reallyrich] 12/5/2020 13:55

Thanks Farmscan wishing my life away too fast it seems

[steelwatch] 12/5/2020 13:28

Prior to Rhum, Wilphoenix is contracted for a slightly delayed 4 well p&a program due to commence around end of this month:

[dunderheed] 12/5/2020 13:16

S93 - you're completely right.
My own interpretation is that if it improves the NPV of the project it can be treated as capex however I have come across auditors in the past who didn't "quite" agree with me - lol!
I'd say this definitely is capex as opposed to work-over but there may well be advantages either way (deal and HMRC related) that impact that "interpretation" - lol!

Re rig agree assuming warm operated or stacked (don't know where it is currently being used?) - must be at "true" opex cost only (plus 2.5%) - without any onerous H Office charges included in that figure!!

EDIT but to be clear you can be very assured this would have been one of the best deals available for the work required as SQZ mgt one of the best in UK! IMHO.

[spangle93] 12/5/2020 12:49

Workovers are a bit of a grey area, CFC, but major ones like this to restore an asset are usually capital costs rather than opex

[captainfatcat] 12/5/2020 11:20

R3 would I assume (dangerous thing to do) be booked as a operating costs and offset against production revenue for 2020. So essentially IOC, BP and SQZ share costs as per current share of ownership of Rhum.

That's how I'm viewing it anyhow.

[farmscan] 12/5/2020 10:52

It will presumably be 50/50 between Serica and IOC, but whether BP will pay 40% of Serica's share is a good point.

[xxx] 12/5/2020 10:47

The estimated cost is 6-9m. Does anyone know if 60% attributable to Serica or 100% or is it deductible from gross revenue ?

[newkotb1] 12/5/2020 10:21

lol, spamming every board possible, but fails to mention JKX outstanding tax issues via the courts, if it goes in their favour, yes it's a possible buy, but JKX will need to wait until September at the earliest for a resolution. Where would you want to operate, North Sea or Russia and Ukraine ?

[littlepuppi7] 12/5/2020 10:02

Time to move to JKX. Not ridden the oil price rally at all yet, Unlike here, no debt, p2 reserves over 100m and 10,000 boepd production. Probably the biggest bargain out there at 30m mkt cap..15m USD in the bank at last count and NO DEBT. Not many shares avaliable at the current low price so should move pretty swiftly... Also hold a 10% stake in UNB, Ukraines biggest O+G producer probably worth 30m plus....

[farmscan] 12/5/2020 09:50

reallyrich, another year @ 60% for 2021, 100% 2022.

[spangle93] 12/5/2020 09:38

Thought they'd get a better deal than that - that rig was good 30 years ago, its sister is stacked, and Rhum is (was?) an HP environment. Maybe cos it's a 1-well contract

[reallyrich] 12/5/2020 09:04

Only 7 months until we get 100% production..time flys fast too fast