Vol. 480 No. 7
34 Ms McManus asked the Minister for Public Enterprise the basis on which she described the Statoil discovery in the Connemara Field as Ireland's first commercial find; if she continues to regards it as a commercial find; if so, when it is expected that oil will start to flow; and if she will make a statement on the matter. [14919/97]
Statoil carried out an appraisal programme of the Connemara field to determine its commerciality earlier this year. The appraisal programme which consisted of drilling and testing two wells, one in the primary reservoir and the other in the secondary reservoir, commenced in March. An important part of the appraisal work was the production of oil during an extended test of the primary reservoir which began on 10 July. The purpose of the test was to obtain data on the reservoir and its production characteristics as an input into the determination of the commerciality of the Field.
The oil produced on test was sold at a commercial rate and was accordingly the first oil to be commercially produced in Ireland. The extended well test in the primary reservoir did not live up to expectations. Flow rates were low and the reservoir pressure fell faster than anticipated. Even though the second appraisal well indicated that the secondary reservoir was oil bearing it was decided not to test the well.
In the light of the results from the two wells, Statoil announced early last month that they will not declare the Connemara field commercial. However, Statoil will continue to evaluate the data obtained during the appraisal programme to gain the best possible understanding of the Connemara reservoirs and will use that information to assist in assessing other exploration potential in the area.
