Oil & Gas Corporate News
Salamander Energy (LON:SMDR) (SMDR, 312.7p, ? 0.45%) provided an update on its Thai drilling operations in Block L15/50, onshore Northeast Thailand. Dao Ruang-2 ("DR-2") drilling operations have been completed and following an openhole drill stem test ("DST") the well failed to flow at a sustained commercial rate and is in the process of being temporarily suspended for potential re-entry at a later date. Drilling now moves to the second location of the two well programme, as originally planned, targeting an independent fault network in the structure. The DR-2 well was drilled to a depth of 2,212 metres true vertical depth sub-sea ("m TVDSS") into the eastern flank of the Dao Ruang structure, targeting a swarm of faults and fractures identified from high resolution 3D seismic. The well intersected a number of fracture zones with associated gas shows and experienced gas influx associated with a fault system around 1,840 m TVDSS. Gas shows were seen all the way to TD, with no sign of water, demonstrating a significant gas column in the Dao Ruang structure. An openhole DST was undertaken across an interval between 1,008 - 2,211 m TVDSS. The section was tested following an acid wash, however only sub-commercial flow rates were recorded, indicating very low permeability formation and a limited open, connected fracture network at the DR-2 location. The MB Century 26 rig will now be mobilised to the Dao Ruang-3 ("DR-3") drilling location. The DR-3 well will target a separate fracture set on the northern flank of the Dao Ruang structure with a different orientation to those seen in DR-2, providing a greater chance of encountering an open fracture network and an opportunity to test at a commercial flow rate. The DR-3 well will be drilled to a planned depth of 1,900 m TVDSS and is expected to spud within the next 8 days. The well is forecast to take 45 days to drill on a dry hole basis. Salamander has a 50% interest in, and is operator of, Block L15/50.
Geopark (LON:GPK) Holdings (GPK, 730p, ? 0.0%) announced its results for the year ended 31 December 2010. Financial highlights: Total revenues increased to US$79.6 million (2009: US$44.8 million); Positive net income of US$4.2 million in 2010, having recorded a loss of US$8.0 million in 2009; EBITDA rose to US$41.1 million in…
