Hibiscus says Cook water injection project on track as planned

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KUALA LUMPUR (May 6): Hibiscus Petroleum Bhd said today that its Cook Water Injection Well in the Cook field, one of four producing fields in the Anasuria Cluster located offshore the United Kingdom's Continental Shelf, has been drilled to a measured depth of 13,045 ft on May 2 to increase its reservoir pressure.

"In drilling the water injection well, the reservoir pressure at the injection well location was found to be as predicted and the water injection well will now be completed as planned to provide pressure support to the Cook P1 production well," it said in a press release today. 

Hibiscus said that its indirect wholly-owned subsidiary Anasuria Hibiscus UK Ltd has received a positive update on the progress of the Cook Water Injection Project from Ithaca Energy (UK) Ltd, which is the Operator of the Cook Joint Venture.

Additionally, Hibiscus said the oil water contact is deeper than originally anticipated. 

"The implications of a deeper oil water contact, whilst potentially positive, are still being evaluated and a further announcement will be made when the detailed work has been completed to establish the latest reserves estimates in the Cook field," it said. 

Previously, it was announced that Anasuria Hibiscus, together with its partners in the Cook field, had sanctioned the Cook Water Injection project which involves the drilling of a water injection well into the Cook field to increase its reservoir pressure, after which a subsea pipeline will be installed in the second half of 2019. 

This subsea pipeline, according to Hibiscus, will link the water injection well to the Anasuria Floating Production Storage and Offloading vessel (FPSO). 
  
Hibiscus revealed that the existing production well in the Cook field, Cook P1, has produced over 50 million barrels of oil since commencing production in the year 2000. 

"Since then, the reservoir pressure has declined thus, the water injection well has been designed to re-pressurise the reservoir, in order to maximise recovery from the Cook field," it said. 

Hibiscus Petroleum, through its subidiary Anasuria Hibiscus, has been the licensed operator for the Anasuria Cluster oil and gas fields, Central North Sea in UK, since March 2016. Anasuria Hibiscus is managing the asset with Ping Petroleum Ltd, through a UK incorporated joint-venture — Anasuria Operating Company Ltd (AOC).

Over at the local stock market today, shares of Hibiscus closed down 7 sen or 6.42% at RM1.02 today, for a market capitalisation of RM1.620 billion.