Small leak nearby halts Mustang Island field

by on September 28, 2012 10:26 am BST

The Texas private operates the Mustang Island 818-L Field off Kleburg County, Texas,
with UK junior Silvermere Energy holding a one-third stake.

The explorers had only just re-started production in late
August after completing the subsea tie-in of the I-1 gas and condensate well.

Silvermere Energy said that after a few days of yielding
drilling mud and other solid material, the re-entered well had been producing
clean gas and condensate when shut in on 5 September.

The explorer added that while it was too early to say what
long-term flow rates would be, the “there are indications that condensate
production may exceed internal projections”.

A lift-boat was sent on Thursday to carry out an operation
to seal off the pipeline connection from the leak-hit platform, in works expected
to take a week that are being paid by the pipeline owner.

It is not the first external mishap to hit the project,
after a lift-boat destined to perform the piling and installation of the
platform crashed while on another job in April, setting back the re-entry by
about a month.

The I-1 well, which was acquired by Silvermere Energy from
Core Oil & Gas, previously enjoyed 15 years of production between 1980 and
1995 before being shut down for economic reasons.

Silvermere Energy, which subsequently farmed in Dominion
Production as operator, had initially hoped to restart production by the end of

Consultants Rockflow Resources have meanwhile now been added as
technical advisors to the project.