The well encountered a sealing element and the target Aptian formation as was indicated on seismic, however, preliminary evaluations of mud log data, logging while drilling data and an analysis of well cuttings do not indicate the presence of hydrocarbons in this primary objective. Vermilion will continue to drill for an expected 48 hours towards a possible secondary target. A full suite of wireline logs will be run to confirm these findings after which the well will be abandoned. Evaluation of the data gathered from this well, together with further seismic evaluation should provide a better understanding of any potential of the remaining structures on the Aquitaine Maritime Permit offshore France.
Vermilion Exploration SAS, a wholly owned subsidiary of Verenex, holds a 22.5% interest in the Aquitaine Maritime permit. VEX was carried on its share of drilling costs (up to a maximum of US $17 million (net)) for the first exploratory well on the Permit. VEX's capital exposure is estimated to be approximately Cdn. $5.2 million, based on an expected gross well cost of US $55 million.
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