The well has since been drilled to a total depth of 11,050 feet as at March 2024 and encountered 25 feet of net oil pay in a tighter than expected reservoir within the target Kais carbonate formation.
Additionally, the well was temporarily suspended under a testing program which commenced in late June with a series of acid stimulations on the well which resulted in successful oil flow from the tight reservoir.
As such, the group is currently completing the well as a producer.
Subject to the requisite regulatory approvals, the Piarawi-1 well is expected to commence production before the end of 2024 at an initial rate of approximately 100 to 200 barrels of oil per day.
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The well will also be tied in to nearby facilities with forward capital investment of approximately US$500,000 ($653,773.09).
Francis Chang, CEO and executive director of RH Petrogas , says, “Once the well is put on production, it would be the first significant increase in production under the Salawati PSC which commenced in 2020.”
Shares in RH Petrogas 0.4 cents higher or up 2.80% at 14.7 cents on Aug 22.
