Bond Offering Memorandum 23 July 2014 - page 294

Kuwait Energy
EL-12-211107
31
aquifer supports production from most of the wells. Three regions have been identified
where significant pressure depletion and absence of water production suggests an
absence of aquifer support. A water injection project (WIP) is envisaged, which would
target these areas. The continuity and thickness of the sandstones of the Rudeis
Formation appear to be favourable for water flooding. Production has declined little in
recent years. Two new wells were drilled and two wells were worked over during 2012,
adding approximately 750 bopd to production. Three more wells were drilled in the first
half of 2013, adding another 800 bopd to production and KE also began water injection in
one well (NY-3a) as the first stage of a water injection project (WIP). In early May, 2014,
the field was producing 2,800 bopd at a water cut of 48%, from 25 wells.
Shukheir NW lies in a heavily faulted area adjacent to the Shukheir field. Northwest to
southeast trending normal faults and perpendicular antithetic faults are interpreted by KE
to divide the field into at least 20 blocks, but considerable uncertainty exists in the
mapping due to the poor quality of the seismic data. Only seven of the fault blocks, all in
the highest part of the structure, have been penetrated by the twelve existing wells;
wireline (MDT) pressure data suggest that these blocks are hydraulically independent,
except in the north-western part of the field where communication may be present. Four
Middle Miocene reservoirs have been identified, South Gharib (tested at 200 bopd by well
Sh-NW-1), Hammam Faraun (from which most of the current production comes), the
deeper Sidri reservoir where production potential has been identified from the logs, and
the still deeper Kareem Formation, where there has been minor production from two
wells. The Lower Miocene Rudeis Formation is also productive in the Ahmad area (an
adjacent fault block discovered in 2011). The Hammam Faraun, at approximately
2,000 ft ss depth, is a sandstone reservoir with four isolated but relatively thick (50 ft)
productive zones with combined pay of up to about 220 ft and average porosity above
20%. Gas caps are present in some of the reservoirs and fault blocks.
Commercial production from Shukheir NW began in January, 2009, initially at 1,100 bopd
from one well, rising to a maximum of 4,300 bopd from seven wells in August, 2009.
During 2012 and 2013, production has been from 11 wells including two drilled in 2012
(Ahmad-2 and West Ahmad-1X) and in early May, 2014 the field was producing just over
3,600 bopd at a water cut of 27% and a GOR of 800 scf/stb. Cumulative production to
end May, 2014 was some 6.5 MMBbl. Additionally, the Shukheir NW-10 was drilled in
April, 2014 and tested at up to 780 bopd; it is expected to be put into production in June.
The other three older fields (Ayun, Kareem and Shukheir) produce approximately
150 bopd from a total of 11 wells and no further developments are planned.
Future oil production from existing, producing wells in all the fields has been estimated
using decline curve analysis. Where wells in Shukheir NW have encountered more than
one reservoir, recompletions are planned to drain each of them in turn. Four in-fill wells
are planned in Yusr in 2015. Production from these new wells and completions has been
estimated on the basis of reservoir studies and analogy with the currently producing
wells.
The WIP in Yusr field was originally studied in 2008. Potential future production profiles
associated with the WIP were generated at that time. Water injection is not an
established recovery method in the area, although the reservoir would appear to be well
suited to it. A pilot injection test in the Rudeis 1B reservoir was successfully performed in
2012 in NY-3a and sustained water injection began in April, 2013. A response has been
seen in neighbouring wells and two additional production wells (Y-61 and Y-62) were
drilled in early 2014. The immediate plan is to continue monitoring the neighbouring wells
and to convert two existing wells to water injection (Y-30 and Y-32). Probable and
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