The DWN-M-1ST exploration well encountered two hydrocarbon bearing units. The first comprised thin gas bearing sands and was not tested. The deeper second unit consisted of 150 meters of continuous well developed reservoir quality sandstones. This unit contained a 46 meter gross hydrocarbon bearing interval including a 42 meter net oil column between a defined gas oil contact and an oil water contact.
The oil bearing zone was perforated between 2,081 meters and 2,092 meters. On test the zone flowed at a stabilized rate of 5,998 barrels of oil per day and 3.87 million cubic feet of gas per day at a flowing wellhead pressure of 1,130 pounds per square inch on a 48/64 inch choke and with a gas to oil ratio of 645 standard cubic feet per barrel of oil. The maximum stabilized flow rate was constrained by surface test equipment limitations.
The oil produced during the test has qualities very similar to that produced from the Cairn operated Ravva field located 30 kilometers to the north-west and the 'P' oil discovery located 11 kilometers to the south-west. The oil has an API gravity of 35 degrees.
Initial reserve estimates for the 'M' discovery in the tested sandstone unit are in the range of 40 to 60 million barrels of oil recoverable. The combined oil reserve estimate for the 'M' and 'P' discoveries is 80 to 120 million barrels. There is also considered to be additional reserve potential in the general vicinity of these discoveries as a number of similar undrilled features have been identified within and around the 'M' and 'P' area which require further evaluation.
The drilling rig will now move to Prospect 'Q', located approximately 15 kilometers to the south-west of the 'M' discovery.
Bill Gammell, Chief Executive, commented: 'We are delighted to have found more oil and significant reservoirs in the Krishna-Godavari Basin. The test result at M means that we can be increasingly confident in the potential for a commercial oil development on Block KG-DWN-98/2. Since our deep water drilling campaign began earlier this year we have established a net reserve potential on this block of at least 200 million barrels of oil equivalent. This first and successful phase of exploration drilling will conclude with the completion of an exploration well on Prospect Q.'
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