Tulip Oil Quarterly Update
Thursday 17 October 2019
Tulip Oil Quarterly Update
Tulip Oil Holding B.V. announced the latest quarterly update on its oil and gas exploration and production businesses in the Netherlands and Germany.
Q10-A development by Tulip Oil Netherlands Offshore*
During the quarter, the drilling of the final 2 wells was completed with a strong safety performance and the rig has now been demobilized.
A total of 6 wells have now been drilled and the reserves have been confirmed. 4 of the wells are now producing. Of the remaining 2 wells, 1 well tested an unexplored deeper gas reservoir, which proved to be tight and non-productive. Plans are being prepared to side-track this well into one of the producing reservoirs. The other well was found to require an alternative completion technique, which is in preparation.
The Q10-A field produced 203 million standard cubic meters of gas in Q3 compared to 76 million standard cubic meters in Q2. The average realized gas price during Q3 was 10.4 €/MWh and the average realized gas price during Q2 was 12.1 €/MWh.
New drilling permits for Tulip Oil Netherlands Offshore*
In Q3, Tulip obtained the requisite permits for a 4-well drilling program to test exploration and appraisal targets in the Q10 and Q11 blocks. These targets are in the vicinity of the Q10-A platform.
Steig-1 onshore German oil discovery in Rhein Petroleum**
The recent Steig-1 discovery encountered an oil column of 150 meters in the well. The vertical well did not reach a water contact in the oil-bearing sands. An extended production test has been completed with 4,000 barrels of oil produced, which has demonstrated economic viability of the Steig-1 oil discovery. This test provided the necessary data and information for the next phase of appraisal and production with horizontal wells. The field development planning is in progress and the preparations for permit applications have commenced.
* Tulip Oil Netherlands Offshore B.V. (‘TONO’) is a 100% subsidiary of Tulip Oil. TONO holds a 60% interest in the production licenses Q07/Q10a and the exploration licenses Q10b, Q08 and Q11. TONO is the operator. Energie Beheer Nederland B.V. (EBN) holds a 40% interest.
The Q10-A gas field was discovered in 2015 and lies 20km offshore the Netherlands in a shallow 21m water environment. The Q10-A development comprises an unmanned platform with six well-slots. Gas is produced through a 42km pipeline to the P15d platform from which it is transported to shore.
** Tulip Oil owns a 90% interest in Rhein Petroleum GmBH which in turn owns and operates a 100% interest in the Graben-Neudorf licence of the Steig-1 well and other licenses.