GeoGlobal stated that testing has proved gas is present at good production rates, but that it is premature to quantify the amount of proved and probable natural gas reserves that may be in place at this time. Additional testing and technical evaluation must be completed, and more exploratory wells must be drilled in order to establish the extent of the field and to estimate the natural gas reserves discovered. GeoGlobal's interpretation of 3D seismic indicates that the KG#8 structure (referred to as "Deen Dayal") may cover a 100 sq km area. Further exploratory drilling over the coming months at approximately 4 kilometer stepouts to the east of the KG#8 well is intended to be undertaken to delineate the extent of the structure. GSPC stated that commercial production is expected to commence before the end of 2007.
The KG#8 well is the third exploration well drilled of a 14 well drilling program committed under the terms of the Production Sharing Contract relating to the KG Block within the Krishna Godavari basin. GeoGlobal has been advised by GSPC that it is seeking additional high temperature - high pressure drilling rigs in this connection. The KG#8 well was drilled to a depth of 5,061 meters, which is the deepest well drilled offshore to date in the KG basin. Until the commencement of commercial production, GeoGlobal has a 5% net carried interest in the 14 wells being drilled under the Production Sharing Contract in the KG Block.
Most Popular Articles
From the Career Center
Jobs that may interest you