Operation Overview
An enhanced oil recovery (EOR) project that has the potential to return the field to its 1980’s levels of production
The Ayoluengo acreage has a long history of oil production, going back to the 1960s. A total of 54 wells were drilling within the field boundary north of Burgos, targeting reserves in Purbeck aged sandstone formations at between 900 and 1400 metres below surface. Peak production of was 5,900 bopd was achieved in 1969 however by the late 1980s production had fallen to 2,500 barrels of oil per day. Since that time a lack of investment has seen production levels decrease dramatically. Leni Gas & Oil (LGO) plans to invest in an enhanced oil recovery (EOR) project that has the potential to return the field to its 1980’s levels of production within the next 5 years.
When LGO’s Spanish subsidiary, CPS, took over full operations of the field at the end of 2007, no proven enhanced oil recovery methods had been used to energise the field (despite some successful trials) and no modern geological assessment had been conducted to identify enhancement opportunities. Having undertaken this assessment CPS have already identified a variety of proven recovery methods and scheduled an exploitation plan to prioritise developments to increase production to the 1980s levels.
CPS now operates the acreage as a fully self-sustainable production facility. Water produced on site is re-injected, gas generated from the site is either used directly for the oil heater and pump motors, or converted to electricity and used to run every aspect of the field (from the pumping systems to the office computers). The production facility enables the oil to be treated (removal of water) and safely stored before being transported to various industrial consumers in Northern Spain. Operating in this way ensures we can maximise oil production, whilst maintaining an awareness and safeguarding the environment.
Ayoluengo Oilfield (100% LGO)
The most significant business opportunity available to LGO is the EOR project through which it is hoped to recover up to 20 mmbbls of additional reserves.
- Acquired by LGO in October 2007
- Largest Spanish onshore oilfield
- Low sulphur crude, 37 degree API
- Total production 17 mmbbls, peak in 1969
- Remaining oil in place 104 mmbbls (P50)
- Original facilities handling 10,000 bopd
- Early 2011 average production 125 bopd
- Phase 1 well enhancement completed in June 2011
- Facilities upgrade planning underway
- Future potential in EOR and deeper targets
- Current production of approx 225 bopd
- Oil sold a fuel oil to industrial users
- Major EOR program to increase recovery to ~30%
- Oil sales agreement with BP to handle higher output
The field lies in a National Park and extensive remediation has been undertaken by LGO to remove oil contamination accumulated on some well sites during the field's history. New concrete pads and bunded storage tanks have been installed and will ensure no future soil contamination can occur.
Adjacent Exploration Acreage (100% LGO)
- Combined acreage of 556 sq.kms with several undeveloped oil and gas discoveries
- Contingent and prospective resources of mean 13 mmboe
- Trial production operations has been undertaken at the Hontomin discovery where well H-2 has been recompleted and placed on long-term test
- A carbon dioxide storage project has been initiated with CIUDEN at Hontomin to test the viability of a CCS project in the Burgos area
- Studies have also considered potential uses for the small Tozo gas discovery within the LGO licence area
- A deeper proven reservoir in the Liassic below the productive Ayoluengo reservoir is being studied and appraisal drilling is planned
- The potential for unconventional shale gas reserves below LGO acreage is also under review as the Cantabrian Basin is a known area for the development of suitable shales at depth
Ayoluengo Recoverable Reserves Estimation
A full field seismic and well re-interpretation identified recoverable reserves in four reservoir sands with 60% identified in the primary Ayoluengo (P90, P50, P10: 2.5, 4.0, 5.8 mmbo) and Sargentes sands (P90, P50, P10: 4.5, 5.4, 6.3 mmbo).
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