Oil & Gas Corporate News
Hardy Oil & Gas (LON:HDY) (BUY, £3.00) (HDY, 235p, ? (8.29%)) announced its fourth successive gas discovery in the exploration block KG-DWN-2003/1 (D3) of NELP-V. The well KGV-D3-W1 was drilled to a total measured depth of 3,501m at a water depth of 1,653m. A gross gas pay zone of 37.5m was encountered in Pliocene aged sands. The potential of the pay was evaluated by wire-line based modular pressure testing tool and collection of gas samples. The discovery (Dhirubhai-52) has been notified to Government of India and Directorate General of Hydrocarbons. The potential commerciality of the discovery is being ascertained through more data gathering and analysis. The D3 license, in which the Company holds a 10 percent participating interest and is operated by Reliance, is located in the Krishna Godavari basin on the East Coast of India and covers an area of approximately 3,288km2.
Comment: An excellent result for the Company despite earlier delays incurred due to a faulty BOP. This is the fourth gas discovery made by operator Reliance and partner Hardy Oil & Gas on Block D3. The pre-drill gross prospective resources estimates of the W1 prospect was estimated in the latest Gaffney Cline report at some 636Bcf with a probability of success of 70%, or net risked prospective resources of 45Bcf for Hardy, representing about 11% of the resources potential of Block D3. Most prospect in the Block have a relatively high probability of success due to the presence of direct hydrocarbon indicators and the de-risking that occurred with previous discoveries. The Company is planning to drill two more wells this year in Block D3 and one well in Block D9, with the latter being a higher risk but higher impact exploration well.
SOCO International (LON:SIA) (SIA, 470.4p, ? (3.66%)) announced that the Te Giac Den appraisal well, TGD-2X, Block 16-1 in the Cuu Long Basin offshore Vietnam, encountered hydrocarbons in a clastics sequence at approximately 4,450 metres measured depth. Drilled to appraise the "E" prospect discovery, TGD-2X reached total depth of 4,669 metres after penetrating the target hydrocarbon zone in the Oligocene "E" formation. The well logging is ongoing, however, drilling shows and early log interpretation indicate two main reservoir sand intervals. Approximately 40 metres will be tested after a 7" liner is set and cemented. Testing is expected to take approximately three weeks. After the completion…
