IOG, the Net Zero UK gas and infrastructure operator focused on high-return projects, provides an update on the Southwark field development:

• The Southwark A2 well has progressed through the hydraulic stimulation phase and currently remains in the clean-up phase, which has taken longer than planned
• Following stimulation of six reservoir zones, gas rates observed from A2 to date have been lower than expected, with a maximum stabilised rate of 4.2 mmscf/d via coiled tubing, at a flowing wellhead pressure of 456 psi
• Associated water rates of up to 1,632 bbl/d strongly indicate a connection to the active aquifer from at least one of the stimulated zones
• A production logging tool (PLT) is being run to acquire downhole data that will help to understand the contribution of each zone and inform next steps
• Subject to the PLT data, the potential solution would be to isolate water producing zones to enable gas flow from other zones. Relevant equipment has already been mobilised to the rig and would be expected to be utilised over the next week.
• If isolation is successful, updated well test results would be expected within the coming weeks which would provide a clearer assessment of the scope for the A2 well to produce gas at commercial rates  

Dougie Scott, COO of IOG, commented:
"Having stimulated six discrete reservoir zones, a low gas rate and apparent formation water production at this stage of the A2 well clean-up is unexpected and disappointing. The production logging tool should provide important gas and liquid flow data to help us calibrate the forward plan, which is likely to be to isolate water producing zones in order to assist gas flow."

Rupert Newall, CEO of IOG, commented:
"The Southwark A2 well testing and clean-up process has not met our expectations to date. At this stage, however, the IOG and Petrofac teams continue to work through the options, gather data, interpret the implications for field production and evaluate next steps."

KeyFacts Energy: IOG UK country profile