Energy firm Kistos on Wednesday said the initial results of an appraisal well at its block in the Dutch North Sea were better than expected with CEO describing the result as "extremely positive." The company also announced a wind farm investment deal.
Kistos said that the appraisal well at the Vlieland sandstone formation in the Q07 and Q10 blocks, drilled by the Prospector 1 jack-up rig, first hit the target formation on prognosis at a depth of 1,562 meters TVDss, and then an 825-meter horizontal section was drilled.
"The Q10-A-04 A well was flow tested for 5 days between 26th and 31st August 2021. During this time, a maximum stable rate of 3,200 barrels of oil per day (bopd) was achieved, which was higher than anticipated. The oil will be sold to a local refinery and is good quality with an API of 33°," the company said.
"The well is now shut-in for a pressure build-up and the information obtained, along with reservoir and surface samples taken during the flow test, will be analyzed as Kistos prepares a field development plan for this project. Kistos has previously estimated 2C resources for this accumulation of between 23.1 - 67.5 mmboe net. This estimate was independently audited by Sproule and will be refined following review of all the data." the company said.
Q10-A field to resume production soon
Kistos, which describes itself as "the low carbon intensity energy producer pursuing a strategy to acquire assets with a role in energy transition," said Wednesday it "recognizes it is imperative that all hydrocarbon supplies are sourced from fields with the smallest carbon footprint possible."
"The company has demonstrated with the design and performance of the existing Q10-A platform that it is capable of keeping emissions to an industry leading minimum. Having confirmed the viability of this discovery in the Vlieland sandstone, we will examine options for developing it to achieve a "best in class" scope 1 and 2 emissions profile.," the company said.
The Q10-A field is currently shut in while annual planned maintenance is carried out at the TAQA-operated P15-D facility, through which gas export is currently routed. Production is expected to re-start before the end of September. Prior to the shut in production was constrained by compressor issues on the P15-D platform.
Kistos got hold of the Q10-A field after it had in March agreed to buy Tulip Oil's Dutch subsidiary Tulip Oil Netherlands for 220 million euros, plus 163 million euros of contingent payments, and 5 million euros of warrants.
Apart from an operating interest in the Q-10A offshore gas field, the company acquired the Q-10B, Q-11B, and M10/M11 discoveries, and other exploration and appraisal projects in the Dutch North Sea.
Also, Kistos said it had on Tuesday signed an agreement with Infinergy and Windcollectief Noord-Holland to enter into exclusive negotiations to acquire Windpark Ferrum.
Windpark Ferrum comprises three wind turbines on the TATA-owned site in IJmuiden where Kistos proposes to reroute gas production from Q10-A and build a compression station next to an existing facility.
"The wind farm can produce up to 7MW of electricity and would enable Kistos to supply a material proportion of the power required by the new facility from a renewable source. This would have the effect of materially reducing the overall carbon emissions of the new plant. The agreement does not require the parties to enter into a transaction and there can be no assurances that one will occur," Kistos said.
'Extremely positive results'
Andrew Austin, Kistos' Interim CEO, said: "I am delighted to be able to announce the extremely positive results from the appraisal well in the Vlieland sandstone. This is a great credit to the team who have spent several years believing in the reservoir and planning this activity. We will now look at our options for developing the field, which overlies our existing producing gas field, in the most carbon efficient manner including the use of shore power derived from renewable sources. I look forward to updating our stakeholders on the remainder of the drilling campaign over the coming months.
"In the meantime, the signing of the exclusivity agreement on the Ferrum wind farm demonstrates our commitment to the provision of low carbon intensity energy supplies. It complements the gas facility we are seeking to develop at IJmuiden, allowing us to keep emissions as low as possible. This is an exciting prospect for Kistos and we look forward to announcing further progress in the near future. "