Canadian-based oil and gas company TAG Oil has achieved its first oil production in the Badr Oil Field (BED-1) in the Western Desert of Egypt.
The company discovered oil in the vertical well, BED 1-7.
TAG Oil said it perforated the Abu Roash “F” formation (ARF Formation) as well carried out a Diagnostic Fracture Injectivity Test.
TAG Oil CEO Toby Pierce commented: “This activity is the first step to establish oil production from the ARF Formation, an oil-rich source rock that covers a significant portion of the 107km² BED-1 concession.
“Production results confirm the economic feasibility of this important resource play in the Western Desert of Egypt.”
The fracture stimulated the reservoir with a 110-ton sand treatment and pump schedule, and garnered positive response, validating reservoir models and projected performance.
Upon flowback, the well emptied to the surface with the natural flow and cleaned up roughly 40% of the fracture fluid that had been injected, with 230 API oil being significantly present, the company said.
More than 500 net barrels of oil were produced during the brief flowback.
The generated oil was fed into a sales pipeline after being connected to a flow-line to the BED-1 field’s production facilities.
To ensure consistent production at stabilised oil rates, the well was shut in so that the frac string, 3.5in production tubing and down-hole electric submersible pump could be installed.
Within a few days, the well is anticipated to start producing, and by mid-June, the company hopes to publish 30-day rates from the well.
“Data collected from the well along with geomechanical and 3D seismic review has enhanced our horizontal well design,” the company said in its press statement. “Plans are underway to secure a drilling rig to drill the first horizontal well designed with a multi-stage fracture stimulation.”
TAG Oil noted that it has secured all necessary approvals and site construction is under way. The company intends to start drilling the well next month.