As outlined in previous releases, IHC is planning to construct a production facility at Steveville that is capable of processing a combined 10-15 MMcf/d of raw gas from these two wells. This gas rate is supported by production test results from the
BOZ Production Testing at IHC-Steveville-3
The production test of the BOZ currently underway in IHC-Steveville-3 is designed to confirm production capability from our primary reservoir across the Steveville structure. The results of our BOZ production at IHC-Steveville-2 confirmed that well as our first potentially commercial production well. Comparison of well logs between IHC-Steveville-2 and IHC-Steveville-3 demonstrates the continuity of the BOZ thickness and reservoir properties between these wells.
Highlight results from the first three days of production testing of the BOZ in IHC-Steveville-3 show: An immediate strong gas flow to surface upon perforating 9m of pay in the BOZ.
Helium concentration of 0.44% and overall gas composition is the same as the gas composition in the BOZ at IHC-Steveville-2, indicating the BOZ reservoir is in communication between both wells.
An initial 2-hour clean-up period with sustained pressure and flow estimated at 5 MMcf/d.
A second 5.5-hour clean-up period, after acid stimulation, with sustained pressure and flow estimated at 8 MMcf/d.
Increasing pressure after gas flow was restricted to 2 MMcf/d using a 1/4 inch choke for the first of two restricted flow periods. Pressures are being recorded at the surface and beside the reservoir. Pressure-transient ('PT') analysis will be used to determine reservoir properties and model production capacity.
In the second six-day period, gas flow will be set at 6 MMcf/d to confirm productive capacity of 5-8 MMcf/d as previously modelled using PT analysis from the BOZ at IHC-Steveville-2.
Due to the high quality of the BOZ reservoir, IHC is conducting an Interference Test between the IHC-Steveville-2 and IHC-Steveville-3 wells by placing pressure recorders in both wells during the multi-point restricted-flow production test in IHC-Steveville-3. This interference test will determine if there is pressure communication in BOZ between the wells over a distance of 4.2kms.
After the two restricted flow periods, IHC-Steveville-3 will be shut-in for approximately 24 days to observe the pressure response of the reservoir as it returns to equilibrium.
Upon completion of production testing,
Upon completion of production testing of IHC-Steveville-3, IHC plans to return immediately to IHC-Steveville-2 to begin production testing the SSZ. In addition, acid stimulation will be used to reduce the skin of +21 in the BOZ to improve deliverability; a skin of -2 (optimal is -4) was achieved using acid stimulation of the SSZ at IHC-Steveville-3.
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