Oil & Gas Corporate News
Niche Goup (NGP, 6.55p, ? (4.38%)) has been informed by Arar Petrol ve Gaz AUPAS, the Operator of Block 4077, that drilling at Gulhanim-2 (G-2) has encountered two potential hydrocarbon bearing zones one of which is shallow, post-salt, and was not anticipated. The other zone is in the upper part of the pre-salt section, and was expected. The shallow gas zone was not fully recognised and evaluated by the previous nearby G-1 well due to gas chromatography failure and lack of wireline logs. Mudlog recording, however, suggests that this shallow potential sand zone is also present in the G-1 well. In G-2, well control has been established by increasing the mud weight to 11.5ppg and drilling resumed below 2,574m with a target depth of approximately 3,400m subject to geological and geophysical evaluations and the objective of testing for the potential of additional gas, condensate or oil in the deeper Paleocene/Upper Cretaceous sequence. Both the recently encountered post-salt and the pre-salt gas and condensate zones will be fully tested and evaluated following the completion of G-2, which is expected to conclude by the end of February. Final volume estimates and commerciality of the discovery will be determined once drilling, flow and other tests are completed. Analysis of results from the G-2 drilling have enabled the Operator to further refine their knowledge of the complex stratigraphy across the Development Area where K-1, G-1 and G-2 were originally drilled. The Operator expects to combine the analysis from drilling K-1, K-2, G-1 and G-2 with the analysis of the recently acquired seismic to identify optimal drilling locations and plan future exploration work on Block 4077. Full analysis of the seismic data is expected to be completed around the end of February. The current work programme is expected to enable a CPR to be carried out across Block 4077 and provide independent reserve estimates. The report will include all the results from the existing wells, workover operations and interpretation of seismic data, and is expected to be completed after the drilling of the G-3 well in the southern portion of the gas structure. The components of the compressed natural gas (CNG) facility continue to be imported and delivered to the site. The Operator has already been able to successfully operate the onsite equipment resulting in test volumes of gas being bottled on site. Gross new funds of £11m are being…
