Bridge made the commercial decision to shut-in Durango in July 2009 to recover gas reserves backed-out during the initial production period that commenced in November 2008. The decision to shut-in the well was facilitated by a financial gas hedge at 50p/therm on 4.8bcfg.
Bridge has been repaid 1.4bcfg while the well has been shut-in, reducing the back-out gas credit to 0.7bcf. Payment from back-out gas has remained at a high level with Bridge receiving GBP1.3m since January 2010.
The well has been restarted at the constrained rate of 10mmcfd gas and 240b/d condensate on a 20% choke with a flowing pressure of 1,842psi. The flow rate will be increased to calibrate the back-out gas percentage and then held at a level to optimize net gas production to Bridge with minimal back-out.
Bridge said that it will further advise the optimal production rate. There is no back-out for condensate at any production level.
