Vanco Spuds Canario Well Offshore Brazil



Panoro Energy ASA announced spudding of the Canario well in the BM-S-63 (formerly SM-1036) block in the southern Santos basin offshore Brazil. The well is being drilled with Transocean's drilling rig, the GSF Arctic I (mid-water semisub).

The Canário well is located offshore approximately 143 miles (230 kilometers) south of the city of Santos in a water depth of approximately 656 feet (200 meters). The well will be vertically drilled to a planned total depth of 15,748 feet (4,800 meters). The primary reservoir target for this well is post-salt turbiditic sandstones of the Middle Itajai-Acú formation (Itajaí Turbidites), expected to be encountered at around 10,499 feet (3,200 meters) below mean sea level. The prospect is also targeting secondary sandstones in the Upper Jureia formation (Juréia Shelf Reservoirs) and in the Lower Itajaí-Açu formation (Ilhabela 1 and Ilhabela 2 Turbidites).

The drilling operation for this well is expected to take 2-3 months. After finishing this well the rig will drill the Jandáia prospect (BM-S-71).

Panoro Energy holds a 15 percent ownership in this block. The partners are Vanco Brasil Exploração e Produção de Petróleo e Gas Natural Ltda (Operator 70 percent) and Brasoil Round 9 Exploracáo Petrolifera Ltda (15 percent). Vanco will finance Panoro's 15-percent share of drilling costs for this exploration well.



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