RockRose Energy (LSE:RRE) announced Tuesday that production has commenced at the A18-A5 well in the Netherlands. RockRose acquired Dyas BV in May which owns a 14.6% interest in Block A that contains the well. The block is a relatively new shallow gas play present in the Northern part of the Dutch Continental Shelf with stable plateau gas production, development upside within producing fields as well as new tie-ins and a lengthy remaining production profile.
The A18-A5 well targeted Pleistocene aged stacked marine sands, specifically the Q3.2 and Q4 sand units with production at the A18 Field to date being from older sand units. The Q4 reservoir came in as forecast, demonstrating a test rate of 320,000 Nm3/d (12 mmscfd) with the Q3.2 sands performing above expectation with rates of 480,000 Nm3/d (18 mmscfd).
This implies an unconstrained comingled production rate of >700 boepd net to RockRose.
A18-A5 is constrained at 20 mmscfd due to infrastructure limits which will result in the asset producing at a platform plateau for considerably longer than anticipated. These constraints give a net rate of 200-250 boepd to RockRose.
This is just one asset in a growing portfolio of UK and Netherlands assets. RockRose paid €107m to Dyas for the Netherlands gas and condensate producing assets adding over 5,000 barrels of oil per day (bopd), doubling the company’s production.
As we reported last month, Rockrose recently put out a tender offer of around 20% of its ordinary shares. The buyback was heavily subscribed with a 95.2% take-up of the offer. Subsequently, the company’s Market Cap has reduced to around £83m on cancellation of the shares.
RockRose Executive Chairman, Andrew Austin said:
“The result from the A18-A5 well came in above pre-drill expectations and, most importantly was delivered safely, on time and on budget.
Our on-going investment in both our UK and Dutch assets is central to our commitment to grow production and invest for the long term.”
Author: Stuart Langelaan
Disclosure: The author does not own shares in the company mentioned above