Bligh Hits Offshore China
Bligh Oil & Minerals reports that its first well in China, the Wei 6-12-1 exploration well in the Beibu Gulf, has been drilled to a total depth of 1,755 meters and logging and pressure testing are now complete. The results indicate that there is a 13.5 meter gross oil column in the Weizhou formation between 1,559 and 1,572.5 meters, with nine meters of oil filled net sand with an average porosity of 28%. A wireline test tool recovered about five liters of dark brown oil, which appears to be of good quality. No oil-water contact was seen in the zone.
The well was positioned about 80 meters down dip from the high point of the structure, which has a large stratigraphic component. Pressure readings suggest that the oil-water contact could be quite close to the bottom of the oil column in the well. The well is currently being plugged and abandoned as an oil discovery, the commerciality of which will require further study. Other sands were encountered in the well and were water-bearing, although there were indications in at least one of those of further oil up dip.
The discovery has upgraded the area in general, especially a comparable, but potentially much larger, prospect about five kilometers to the southeast. The Joint Venture is currently considering its overall forward strategy, but on the basis of the well results, Bligh is encouraged to proceed into the next Permit Term. Bligh has a 40% interest in Block 22/12 and is operating the drilling of the well. The other participants are: Petsec Energy Limited with 25%; Roc Oil Company Limited with 25%; First Australian Resources Limited with the remaining 10%.
Commenting on the discovery, Bligh's CEO, Mr Brent Emmett, said: "We are encouraged by the results of this well for a number of reasons:
- Generation of oil, as well as the presence of good quality reservoirs and sealing shales, have been clearly demonstrated.
- The pre-drill seismic prognosis was confirmed by the drilling results. We believe that this proves the value of the existing 3D seismic as a mapping tool and provides considerable incentive to further utilize the seismic to develop targets for future exploratory and appraisal drilling.
- The well was drilled to the objective quickly - less than 10 days - and trouble free. The above ingredients, plus shallow waters and nearby infrastructure, give us great encouragement to more fully explore and develop this area with the China National Offshore Oil Corporation and our co-venturers."