The remaining seven meter perforation, approximately 20 meters below the main sand, was tested and was also found to be hydrocarbon bearing. This interval flowed at a clean-up test rate in excess of 280 bbl/d of condensate and 2.1 mmcf/d of natural gas through a 18/64 inch choke with a tubing head pressure of 2,250 psi. This equates to 630 boe/d. A complete test could not be conducted on this interval to determine its full capacity.
With the two new reservoirs and the main sand (totaling 65 meters of net pay), this well flowed at a total of 1,190 bbl/d of condensate and 12 mmcf/d of natural gas. This equates to 3,190 boe/d.
This is by far our most successful result at Amguri to date.
Increased Amguri Production
The surface locations of Amguri 10B and Amguri 11 are 200 meters from existing gas and oil sales facilities at Amguri 6. These two new wells are planned to be tied-in and on production prior to year-end. There will be some facilities preparations required before these wells can be placed on stream at full rates. Even at partial rates initially, these wells will significantly increase oil and natural gas production from Amguri.
Amguri Development Plan
Based on the successful results from Amguri 10B and Amguri 11, we are beginning to prepare an initial development plan for the Amguri field. We are proposing up to eight more wells in the first phase of the plan, six development wells and two more appraisal wells to delineate the main part of the field. It is planned that Amguri 12 be the first well drilled in phase one of the field development, with a proposed location 1,200 meters southwest from Amguri 11 and structurally up-dip. If the appraisal wells are successful, additional development wells will be planned in phase two of the program.
With the rich nature of the natural gas at Amguri, we have begun investigating the installation of facilities that would remove additional liquids from the natural gas produced. These liquids could then be captured and sold at a much higher price then we receive as part of the natural gas stream. Based on early calculations, we believe that we could capture an additional 25 to 50 barrels of liquids per million cubic feet of gas produced.
While the development plan is being prepared and submitted for approval, we are releasing the drilling rig to another operator in Assam for one well or about four months. This operator will provide the joint venture partners with approximately US$1.4 million for their share of the initial mobilization and demobilization charges incurred to bring the drilling rig into Assam, thus reducing our total drilling costs. Further drilling at Amguri is expected to resume during the first quarter of next year.
Canoro is a Canadian-based international oil and gas company operating in the Assam/Arakan basin of northeast India. Canoro is the operator of Amguri field with a 60% working interest. Canoro is the operator with a 65% working interest in the AA-ON/7 exploration block. Canoro also has a 15% non-operated working interest in the AA-ONN 2003/2 exploration block.
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