Candax Energy Inc. announces that the installation of the offshore production platform at the EBB-4 location and tie in to the oil and gas export pipeline has been completed, successfully pressure tested and certified for production operational start up. EBB-4 will not commence production until completion of the three well program and the installation of the gas recycling system, which will allow re-compression of the gas onshore and injection into the system, including gas-lifting both EBB-4 and EBB-3.
A considerable volume of water was lost into the EBB-4 well during the drilling of the horizontal section, which will need to be removed from the near-wellbore area by gas-lifting with the re-compressed gas.
Although continued bad weather during January further delayed project completion, the installation and tie in of the EBB-5 platform is progressing. The jacket has been installed offshore and the topsides/deck is currently being mated and welded to the jacket. Upon completion, the gas injection line and risers will be installed and commissioned, and then the well will be tied into the onshore gas compression system. The West Titania rig is currently drilling the EBB-3 well, the final well in the program. Upon completion of drilling, the West Titania drilling rig will be released and the installation of the EBB-3 platform and pipeline hookups with the other wells will commence. The full field development is now expected to be completed in March.
Michael Wood, President and Chief Executive Officer, commented:
"Although the delays in project completion due to uncharacteristically bad weather in this region and the inability of bringing on early production from EBB-4, due to the water lost while drilling, are frustrating, Candax is looking forward to the completion of the last of our three well program and to the release of the West Titania rig. We are working on the completion of the platform installations and necessary pipeline hookups and commissioning of the integrated production and gas recycling project for start up as soon as possible."
Candax also announces that it has drawn down US$29 million, on its credit facility with Bank of Scotland. Together with the US$20 million draw down in December 2007, the total of US$49 million is underpinned by Candax's existing reserves.
The credit facility was established to provide financial flexibility, substantially for new business development opportunities and also for support on continued investment activities in Tunisia and for general working capital purposes.
The credit facility was established to provide financial flexibility, substantially for new business development opportunities and also for support on continued investment activities in Tunisia and for general working capital purposes.
Source: Oilvoice
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