Indago abandons well
Posted: 28 April 2008
Indago Petroleum Limited, the oil and gas exploration company exploring onshore the Sultanate of Oman, provided a drilling update for the Al Jariya-1 well, located on the Jebel Hafit prospect in Block 31, adjacent to the border with Abu Dhabi.
Following press releases made by the Company and by the Operator RAK Petroleum PCL on March 28th 2008 regarding the status of the subject well, work has continued on the attempt to remediate the well and prepare it for a possible sidetrack.
A cement plug was set across the open-hole section below 4591m as planned.
The operation proceeded using free-point logs which identified 2668m as the point below which the drillstring was stuck.
Subsequent recovery of drill pipe could only be achieved from above this depth.
This situation precludes any sidetrack operation from below this 2668m level and a sidetrack from above this level is considered to be neither safe nor technically feasible.
The Al Jariya well will be plugged and abandoned . This operation has been approved by the Oman Ministry of Oil and Gas and should be completed during the next few days.
"Clearly the loss of the Al Jariya well is a huge disappointment for the company and our shareholders,” Said David Bremner, CEO.
"We intend to pursue vigorously all avenues open to us to get Jebel Hafit re-drilled in as short a time frame as possible.
"In the meantime we believe that the imminent drilling of the Zad well on the Adam prospect should hold considerable interest for our shareholders. Adam is a moderate risk prospect targeting significant gas and gas condensate reserves in close proximity to existing infrastructure. The target reservoir in the Zad well is shallower than that in the Al Jariya well and, as the hole will be vertical as opposed to deviated, our hope is that it will be drilled without significant problems.
"The well is programmed to take around 100 days from time of spud. Irrespective of the insurance claim and despite the cost overruns associated with Al Jariya, Indago is well funded to drill Zad which is the final well in the originally planned three well exploration programme."
Following consultation between the joint venture partners and the Ministry, and in accordance with the previously announced plans, the intention is to now move the Nabors 103 rig to the Zad location on the Adam prospect, on the adjacent Block 47, and to drill that well starting in late May 2008.
Whilst that well is drilling, the joint venture will progress its insurance claim for the loss of the Al Jariya well and fully evaluate the practicality and cost effectiveness of re-drilling the Jebel Hafit prospect.
It is likely that the order time required for long lead items will preclude the possibility of drilling a new Jebel Hafit well immediately following the Zad well and, therefore, such a re-drill would probably not commence before 2009.
As described in the Operator's press release of March 28th 2008, technical work indicates that the prospectivity of the Jebel Hafit structure remains substantially undiminished, most certainly at the deeper Shuaiba (Thamama) level which is estimated to hold the majority of the prospective resources.
Indago holds an approximate 50 per cent interest in Oman Blocks 31 and 47. The Operator, RAK Petroleum PCL, holds the balance of the interest in each case.
Posted by Richard Price, Editor, EnergyME.com
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