The well is located in the S Teodoro production concession in which the company has a 100% working interest.
Following the reinterpretation of well log and seismic data performed by MOG during 2009, the work-over was performed on the ST1dirA well during September 2010 to evaluate a previously un-tested Pliocene silt level at about 1,300m depth, which is associated with an amplitude anomaly on the seismic data.
A production test has now been performed and the well has produced gas from this level at stabilized flow rates of 5,000scm/day to 6,000scm/day (30boepd – 35boepd) with no associated water production.
Based on the current gas prices and MOG’s 100% interest in the concession, the future restart of the production on S Teodoro is expected to generate revenues of approximately EUR500,000 per annum.
Following the encouraging results of this work-over, the company is initiating a full re-assessment of the S Teodoro field and of the wider concession area.
The field is thought to contain additional un-tested gas zones, and other analogous gas exploration prospects are present within the production concession.
MOG CEO Sergio Morandi said that the operation at S Teodoro concession is part of the company’s on-going gas production and reserves enhancement work plan.
"The company is actively working to maximize the gas production potential from its existing portfolio of production concessions and the utilization of the existing production wells, gas production plants and other infrastructure," Morandi said.
