DNeX’s associate company Ping completes oil well in UK for additional 4,750 barrels of oil per day

“Drilling and completion works of the P2-ST well were executed by the Anasuria Operating Company Limited (“AOC”), which is equally owned by Ping’s wholly-owned subsidiary Ping Petroleum UK Limited and Anasuria Hibiscus UK Limited. Through AOC, Ping Petroleum UK jointly operates the Anasuria Cluster oil fields and Floating, Production, Storage and Offloading (“FPSO”) facility.

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Kuala Lumpur, 3 September 2018 – Ping Petroleum Limited (“Ping”), an associate company of Dagang NeXchange Berhad (“DNeX”), has announced that drilling works of the GUA-P2 side-track (“P2-ST”) well have been completed.

Located in the Guillemot A field of the Anasuria Cluster in the United Kingdom Central North Sea, the P2-ST well can achieve a gross production rate of 4,750 barrels of oil per day, and is also targeting untapped volumes of oil in the Forties reservoir.

Drilling and completion works of the P2-ST well were executed by the Anasuria Operating Company Limited (“AOC”), which is equally owned by Ping’s wholly-owned subsidiary Ping Petroleum UK Limited and Anasuria Hibiscus UK Limited. Through AOC, Ping Petroleum UK jointly operates the Anasuria Cluster oil fields and Floating, Production, Storage and Offloading (“FPSO”) facility.

During the clean-up and flowback phase of the P2-ST programme recently, the well achieved a stabilised gross production flow rate to the Anasuria FPSO of 4,750 barrels of oil per day, or 2,375 barrels of oil per day net to Ping Petroleum UK.

The flow rate was established based on a 20-hour flow period through a 32 per cent choke and with the application of gas lift at a rate of 1.7 million standard cubic feet a day. The drilling works were undertaken using the West Phoenix semi-submersible drilling rig.

According to En Zainal Abidin Jalil, Group Managing Director of DNeX, the positive results from the P2-ST well support Ping’s strategy to increase production and add reserves to the Guillemot Field.

“We are pleased with the drilling results. The success of the P2-ST reinforces planned future development projects in the Anasuria Cluster and Ping’s commitment to increase production and maximize the economic value of this asset,” he said.

The Anasuria Cluster consists of the Teal, Teal South, Guillemot and Cook fields, which produce to the Anasuria FPSO facility. The Anasuria Cluster is located offshore in the United Kingdom sector of North Sea. Ping Petroleum UK holds 50 per cent joint-operating interests in the P013 licence consisting of the Teal, Teal South and Guillemot A fields as well as 19.3 per cent non-operating interest in the P185 licence consisting of the Cook field.

Ping had also recently announced an increase in the oil and gas reserves embedded in its portfolio based on the latest reserves update undertaken by a third party.

Total proved and probable (“2P”) oil reserves stands at 27 million barrels equivalent (“MMboe”) or about 20 per cent increase as compared to 23 MMboe recorded during acquisition in 2015.