Genel Energy's appraisal well fails to achieve 'stable and sustained' commercial flow
Genel Energy
80.50p
11:09 08/11/24
Oil producer Genel Energy said on Tuesday that testing of its Sarta-5 appraisal well was now complete and noted that while oil was recovered to the surface from a number of intervals, a stable and sustained commercial flow was not achieved from the primary reservoir objectives of the Mus and Adaiyah formations nor the secondary Lower Sargalu or Najmah formations.
Oil & Gas Producers
8,048.30
11:09 08/11/24
Genel Energy stated that the intervals tested were able to support the sustained flow of reservoir fluids, indicating that the reservoirs at the location were "tight", something that was identified as "a critical pre-drill risk" of the appraisal well.
The London-listed group added that the presence of oil associated with both the primary and secondary Jurassic reservoir intervals, 12.0km southeast of the Sarta pilot early production facility, will now be subject to further investigation and integration into the joint venture's understanding of the Sarta field and future planning.
While the well will now be suspended according to KRI regulations, Genel highlighted that the appraisal programme will continue at Sarta-6, roughly 6.0km to the west of the pilot EPF, with test results expected in the third quarter of 2022.
As of 0950 BST, Genel shares had slipped 6.60% to 169.80p.
Reporting by Iain Gilbert at Sharecast.com