Jubilant announced that KPL-F, the fifth of the seven development wells of the Phase-III drilling campaign in the oil producing Kharsang Field, Arunachal Pradesh was spudded on January 13, 2012.
KPL-F, located in the southern area of the field to the south of well KSG#55, is being drilled with the primary objective of appraising the lower S-00 reservoir oil bearing sands together with a secondary objective of appraising the Q-00 and T-00 sand layers. The well will be deviated by approximately 522 meters to the south from the existing plinth of well KSG#48 and drilled to a target depth of approximately 1,480 meters True Vertical Depth ("TVD").
The well is expected to take between four to five weeks to drill and the estimated cost is approximately USD 2 million (USD 0.5 million net to Jubilant).
The fourth development well, KSG#61 (previously referred to as KPL-H), which was spud on 9 December 2011, was successfully drilled to a depth of 1,127 meters Measured Depth ("MD") (1,066 meters TVD) on 5 January 2012. Based on the results of the wireline log interpretation, drill cutting, and formation pressure data from the Reservoir Dynamic Tester, a number of sands have been encountered in the well in line with previous expectations. The Company will be flow testing the sands and, if successful, expects to put the first zone on production within 3-4 weeks. A further release will follow regarding the actual tested rates. The KSG#61 well is being tested with the smaller capacity work-over rig which was mobilized to the site on 11 January 2012.
GeoEnpro Petroleum Ltd., a joint venture between GeoPetrol and Jubilant Enpro (a member of the wider Jubilant Bhartia Group), is the operator of the Kharsang Field. Jubilant holds a 25 percent interest in the block through its subsidiary, Jubilant Energy (Kharsang) Pvt. Ltd. The other members of the consortium are Oil India Ltd. and GeoPetrol.
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