Development wells at Wichian Buri had failed to meet expectations and the joint venture partners agreed that an engineering review of the field should be used to determine how best to remediate the wells and to provide a basis for planning optimal drilling and production programs.
The partners commissioned Navigator Resource Management to review the oilfield and the joint venture operations. But since July this year, Pacific Tiger has been withholding information and royalties from Carnarvon and excluding its partner from decision-making, including operational changes and the dismissal of key Thai-based staff.
Last month, the Alberta Court also ordered immediate access to the joint venture records, immediate payment of past revenues and monthly reporting. Carnarvon was also awarded costs. Carnarvon director David Orth said the result was only the first of several, with the company pursuing similar payments for the months of August, September, October and November.
“Carnarvon has now received some information from Navigator Resource Management concerning its review of the oilfield and the joint venture operations,” Carnarvon CFO and company secretary Rick Pullia said.
“Carnarvon has sought further information on these matters and the proposed field exploration and well development program from Pacific Tiger and Navigator.”
According to Navigator’s report, well WB-N1 which was previously suspended is now back online and producing about 158 bopd, while the WB-N8 horizontal well is producing at 22 bopd.
Another horizontal well, WB-N7 has been suspended and no further remedial work is planned. A report by Icon Engineering Inc (no relation to the Australian firm of the same name) has found that the reservoir has little permeability and that stimulation of the well will not result in commercial production, according to a statement by Pacific Tiger to the TSX Venture Exchange.
“Management is currently utilising other oilfield consulting firms to re-evaluate all technical exploration data,” Pacific Tiger said. “The company will finalise a field exploration and well development drilling program early in the first quarter of 2005.”
