GeoGlobal: Essar Rig Onsite

GeoGlobal Resources Inc. announced that the Essar Wildcat rig is on location and preparing to drill the KG#19 well. It also provides an update on the exploration activities of the Gujarat State Petroleum Corporation (GSPC) on exploration block KG-OSN-2001/3.

"We continue to work with GSPC to drill several key targets on the KG Offshore Block. We believe, despite certain technical challenges over the last quarter encountered while drilling on the KG Offshore Block, that we are making good progress in our announced exploration programs" said Jean Roy, President and CEO of GeoGlobal.

GSPC has confirmed that the Essar Wildcat rig is on location and is currently in the process of anchoring and setting up the rig in order to commence drilling the KG#19 exploratory well. Spudding of the KG#19 well is anticipated once all eight anchors have been set. The surface location of the KG#19 well is approximately 11 kilometers northeast from the KG#8 platform and is located in deeper waters of approximately 150 meters in depth. The KG#19 well is intended to be a near-vertical exploration well, drilled to a total depth of approximately 5,000 meters in order to target reservoirs below the Lower Cretaceous unconformity.

As previously announced, drilling of the KG#31 exploratory well commenced on September 20, 2007, using the Atwood Beacon rig. The surface location of KG#31 well is situated approximately 3 kilometers north of the KG#8 platform in shallow waters of approximately 62.5 meters in depth. The KG#31 well was drilled directionally 600 meters north-west of the present surface location to a depth of 3,892 meters TVD (4,058 meters MD), to test the Upper Cretaceous. Based on log results, GSPC elected to go up-hole to the 13-3/8" casing shoe at 2,272.5 meters MD and set a bridge plug and whip stock the well.

GSPC commenced drilling the KG#31 Side Track-1 ("KG#31 ST-1") well in a more horizontal direction below the 13-3/8" casing shoe directionally 900 meters west of the present surface location, to an approximate TVD of 4,800 meters to target the Lower Cretaceous. On November 22, 2007, while drilling the KG#31 ST-1 well at 3,855 meters MD (3,671 meters TVD), the well took a kick, possibly indicating a presence of hydrocarbons in the Upper Cretaceous in this area. Due to drilling complications, the well was ultimately plugged back with cement up to 3,750 meters MD. Thereafter, the KG#31 ST-1 well was logged and cased with 9-5/8" casing down to 3,750 meters MD. After detailed review of the available data, it was decided by GSPC to continue drilling in an attempt to test the Upper Cretaceous zone not previously tested in the KG#31 ST-1 well.

GSPC elected to side-track the well, and commenced drilling the KG#31 Side Track-2 (KG#31 ST-2) well on December 29, 2007, with an 8-1/2" drill bit below the 9-5/8" casing shoe from approximately 3,750 meters MD to 3,990 meters MD.

Based upon independent logs and dual packer MDTs ("Modular Formation Dynamics Tester") on wire-line, the operator decided to do a barefoot test of the Upper Cretaceous interval from 3,899 to 3,946 meters MD with an approximate initial reservoir pressure of 9,000 psi and reservoir temperature of 320 degrees Fahrenheit. On February 2, 2008, the KG#31 ST-2 well recorded a flow of approximately 0.3 MMSCFD of gas though a 12/64" choke at a flowing well head pressure of 480 psi. While tests confirmed the presence of hydrocarbons in the Upper Cretaceous in this part of the block, the results from this test are inconclusive to determine reservoir rock properties. GSPC decided to drill ahead to 5,400 meters MD (4,800 meters TVD). After several failed attempts to recover the packer, the well was plugged back below the 9 5/8" casing shoe and GSPC again elected to side track the well.

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