Rockhopper Exploration said that during the testing of its Sea Lion well in the Falkland Islands, problems limited the amount of oil extracted to just an average of 2000 barrels per day (bopd). Otherwise, it could have produced sustained rates of at least double that, at 4000 bopd.
In a statement released on Friday, Rockhopper gave descriptions of the encountered problems, saying: “Rockhopper believes that the flow rate was inhibited by incomplete perforation, waxing of the tubing string above 800 metres, increased viscosity of the oil as it cooled in the upper part of the test string and a lack of specialist equipment.”
They added: “Rockhopper also believes that, with a more optimal well location and horizontal well completions, significantly higher flow rates could be achieved from future production wells.”
The company gave encouraging news last week when it reported, after weeks of build up, the Sea Lion was tested, and the results were that it was commercially viable. The news sent the share value through the roof, on the way to an all-time high.
The highly anticipated project is the first discovery of oil offshore the islands by a group of British explorers. This will create new opportunities in the future, not only for Rockhopper, but other oil exploration companies as well.
Since Rockhopper believes that with a more optimal well location and better equipment, a much higher production rate could be achieved on future wells is possible, they are looking to the future with great optimism.