/NOT FOR DISSEMINATION IN THE UNITED STATES/
CALGARY, March 25, 2013 /CNW/ - Griffiths Energy International Inc.
("Griffiths" or the "Company") is pleased to announce an operational
update summarizing its current development and exploration activities
in the Republic of Chad ("Chad").
The Badila-2 development well that was completed in January 2013
achieved 3,300 bopd in a maximum restricted natural flow rate test.
Griffiths expects that it will produce at an initial rate of 7,500
The Badila-3 development well spudded in January 2013 has been drilled
to a total depth of 2,150 meters and cased as a future production well.
The Mangara-4 development well spudded on 13 March 2013 and drilling is
scheduled to be completed by the end of April.
The 320 km2 3D seismic survey covering the Badila field and the adjoining Bitanda
Ridge exploration prospect is on schedule to be completed during May,
before the rainy season begins.
Griffiths estimates that the combined initial production capacity from
the Badila-1 and Badila-2 oil wells will load the facilities at 14,000
bopd (gross) and continues to target the second quarter of 2013 for
Badila-1 and Badila-2
The Badila-2 maximum restricted natural flow rate test of 3,300 bopd
compares with a previously disclosed maximum of 4,025 bopd at Badila-1.
As Badila-1 has already demonstrated the high productivity and reserves
potential of the Cretaceous C sands, the focus of testing at Badila-2
was the Cretaceous D. A total of 94.5 meters of net pay was opened
across eight Cretaceous D sands (D1,2,3,5,6,8,9,and 10) and the
Cretaceous E1 sand.
At Badila-2 the total test period was 115 hours. The maximum restricted
rate of 3,300 bopd was achieved over six hours. During this six-hour
period the gas-oil ratio was 105 scf/stb, API gravity was 28° to 30°,
wellhead flowing pressure was 253 psi and the water-cut was 5%.
After production logging identified 98.5% water originating primarily
from the Lower D8-D9-D10 sands, a temporary plug was run in the well so
that the well can be initially produced water-free. Testing shows the
well has a high productivity index of 17.7 bopd/psi compared with 15
bopd/psi at Badila-1.
As previously disclosed, extensive coring and wireline logging suggest
195 meters of net oil pay at Badila-2. The net oil pay includes 101
meters in the Lower Cretaceous C zone across 5 sands, 92 meters in the
Lower Cretaceous D zone across 8 sands and 2.5 meters in the Lower
Cretaceous E sands.
Badila-1 has 123 meters of net oil pay in the Lower Cretaceous C and D
sands. Only 23.5 meters in the C sands was perforated for the test due
to mechanical conditions of the well.
Griffiths estimates an initial production capability of 15,000 bopd to
17,500 bopd (gross) for both wells combined, based on a range of 7,500
bopd to 10,000 bopd at Badila-1 and a rate of 7,500 bopd for Badila-2.
Therefore, the production facilities, which are limited to handle
14,000 bopd in the initial development phase, will be fully loaded by
the production capability of Badila 1, 2 and 3 until the facilities can
To achieve this combined production rate, each well will have assistance
from a variable speed electric submersible pump ("ESP"). The Badila-2
ESP installation has been completed and the Badila-1 ESP installation
is currently underway.
The Badila-3 well was drilled to appraise the reservoir structure of the
north west flank of the Badila field. The well was cored at several
intervals, and petrophysical analysis suggest the well has up to 71.3
meters of net oil pay.
The net oil pay includes up to 27.1 meters in the Lower Cretaceous C
zone across 4 sands, and up to 44.2 meters in the Lower Cretaceous D
zone across 9 sands. The well will be completed in the coming weeks to
test the oil pay indicated from the petrophysical analysis and confirm
productivity of the well.
The Company has commenced a 3D seismic program covering more than 320 km2 for the Badila field, as well as the adjoining Bitanda ridge, where
multiple exploration prospects have been identified on 2D seismic.
Seventy percent of the seismic lines have been cleared and seismic
acquisition is underway. The acquisition program is scheduled for
completion in May 2013, and processing will begin in June 2013.
Mangara Development and Exploration
The Mangara-4 well spudded on 13 March 2013 and is expected to be
completed by the end of April. The well has been targeted as a combined
development well for the Cretaceous C & D sands, and as an exploration
test of the Cretaceous E. Production casing will be set at 2,235 meters
for the Cretaceous C and D intervals, and the well then deepened to
test the exploration potential of the Lower Cretaceous E sands to a
total depth of 3,300 meters.
Three wells were drilled by prior operators at Mangara between 1978 and
2007, with each encountering oil in multiple stacked reservoirs. The
wells were flow tested at rates between 300 bbl/d and 1,875 bbl/d.
Griffiths re-entered one of these wells in March 2012 and achieved a
natural flow rate of approximately 800 bbl/d from the C reservoirs and
confirmed the suspected formation damage from the original drilling.
The previous operators drilled three penetrations (of varying depths) of
the Cretaceous E sands. The E Sands had good hydrocarbon shows across a
gross interval of 750 meters with a potential gross section of 900+
meters based on seismic estimates. In addition, a drillstem test across
a 9 meter interval at the top of the E sands showed moveable
hydrocarbons with an undamaged calculated flow capacity of 220 bopd,
and API gravity of 38.9°.
Civil work continues to progress to prepare for additional development
drilling wells at the Mangara field, which is approximately 100 km from
Connection to the COTCO/TOTCO Export Pipeline
As previously disclosed, the connection between the Company's Badila
field and the COTCO/TOTCO Export pipeline is expected to be fully
completed in Q2 2013. The Modification Agreement to allow a
Mangara-Badila blend was signed by all parties during March 2013.
Griffiths is also progressing with the pipeline connecting the Mangara
field to the export terminal and this project remains on schedule to
be completed and commissioned in Q3 2013.
Production Facilities and Blending and Export Terminal
Griffiths Energy expects the Badila early production facility ("EPF") to
be commissioned in April 2013 and ready for oil in May 2013. The EPF
will initially include the pipeline tie-in of the Badila-1, Badila-2
wells, with Badila-3 tie-in planned once additional handling capacity
Over the past quarter, Griffiths has progressed projects for all
pipeline and facility construction, including construction and start-up
of two living accommodation camps, civil work and all required
foundation work. The transfer metering station is also onsite and being
prepared for full production.
The Company continues to focus on supply chain management and has
procured all major blending equipment, storage tanks and shipping pumps
for the production processing, blending and export terminal
facilities. Over 9,000 tons of equipment has already been delivered to
various project construction sites. Delivery of all remaining
equipment is on schedule.
Construction of both the Mangara production facility and the blending
and export terminal is scheduled to begin during Q2 2013 and be
commissioned by late Q3 2013. To prepare for the major facility
construction, civil, concrete and foundation work is ongoing at
Gary Guidry, Chief Executive Officer of Griffith Energy, said:
"In 2013 we have successfully drilled two development wells in the
Badila field and spudded a development well in the Mangara field. We
have also commenced the largest 3D seismic survey ever to have been
undertaken by an independent E&P company in Chad.
"We continue to target the second quarter of 2013 for initial production
and now know that production capacity from our first two Badila wells
should deliver at a combined 14,000 bopd to keep our phase-1 production
facilities loaded. We expect Badila-3 and the Mangara field to add
further production by the end of the year."
About Griffiths Energy International Inc.
Based in Canada, Griffiths Energy is an international exploration and
development company focused on oil and gas exploration, development and
production activities in the Republic of Chad, Africa. In 2011, the
Company acquired their production sharing contracts ("PSCs") from the
government of the Republic of Chad. These PSCs provide exclusive
rights to explore and develop reserves and resources over a combined
area of 26,103 km2 in southern Chad. The PSCs cover two world-class oil basins with
development opportunity, oil discoveries, and numerous exploration
Forward-Looking Statements and General Advisory
Certain information in this press release constitutes forward-looking
statements under applicable securities law. Any statements that are
contained in this press release that are not statements of historical
fact may be deemed to be forward-looking statements. Forward-looking
statements are often identified by terms such as "may," "should,"
"anticipate," "expects," "seeks" and similar expressions. Specific
forward-looking statements included in this press release include
comments related to the expected timing of pipeline completion and
facilities advancement; potential production rates; expected completion
of well servicing operations; development of the Mangara and Badila
field; expected completion of the 3D seismic shoot; and other matters.
SOURCE: Griffiths Energy International Inc.
For further information:
Gary Guidry, President and Chief Executive Officer
Trevor Peters, Chief Financial Officer
Longview Communications - Canadian Media Enquiries
FTI Consulting - UK Media Enquiries
Ben Brewerton / Ed Westropp
+ 44 (0) 207 8313 3113