GeoGlobal Charges Forward with Operations in India



GeoGlobal Resources Inc. has disclosed an update of certain of its exploration activities in India conducted during the quarter ended June 30, 2008 and through August 13, 2008.

Cambay Blocks

Tarapur Block

As at August 13, 2008, twenty-three wells have been or are being drilled on this block. Of the twenty-three wells, seventeen are exploration wells, three are appraisal wells and three are development wells. Three wells (Tarapur-1, Tarapur-6 & Tarapur-G) have been notified to the GOI as discovery wells on this block.
A field development plan was filed with GOI and DGH on May 1, 2008 for the Tarapur field (includes Tarapur-1, Tarapur-G and Tarapur-6 wells) under the provisions of the PSC. Further, the Operating Committee for the Tarapur block recommended that ONGC as the licensee, apply to the Government of Gujarat for a mineral lease for the Tarapur field discovery area within the block (approximately 9.7 sq. kms.) so production can commence upon approval from the GOI. Government approvals for the field development plan and the mineral lease have not yet been received.

During the three months ended June 30, 2008, one well (Lead 3) completed drilling to a total depth of approximately 3,200 meters. It is currently suspended awaiting a testing program. One well (TS-10) commenced drilling and continues to drill. At last report, the well was at an approximate total depth of 1,900 meters.

Pursuant to an agreement entered into with GSPC in April 2005, the Company acquired a 20% participating interest in an area of approximately 1,211 square kilometers known as the "Tarapur Block". This Pre NELP block was awarded to GSPC in 2000. At the time of the Company entering into this agreement with GSPC, operations on the block were in the second phase and GSPC moved into the third phase in November 2005. The work commitment on Phase III was to drill one well which has been met.

GSPC, as operator, has submitted an application for an extension beyond the third phase of the PSC for an additional twelve months from the date of approval to complete an additional four exploration well work program. Subject to the grant of the extension, contracting parties have agreed to provide a 35% bank guarantee and a 30% cash payment based upon the additional work program. Further, a five well appraisal program has been planned to the northeast of Tarapur-6 within the Tarapur west development area to expand the field over the infill 3-D seismic program completed in 2008.

Oil and Natural Gas Corporation Limited of India has the right to participate into the development of any commercial discovery by acquiring a 30% participating interest as provided under the sharing contract. This exercise of this right would result in the reduction of the Company's participating interest to 14%.

Mehsana Block

The required seven exploratory wells in Phase I have been drilled on this block. One well (CB-3A) has been notified to the GOI as a discovery well on this block.

Jubilant as operator, advised the GOI that 25% (approximately 32 sq. kms.) of the Mehsana Block has been relinquished pursuant to the terms of the PSC leaving an area of approximately 93 square kilometers. Jubilant further advised that it does not wish to enter into the second exploration phase under the PSC, however, it will continue to appraise the discovered area through the continued testing of the previously drilled wells and possible drilling of appraisal wells. GOI approval is pending.

The Company has a 10% participating interest in an area of approximately 93 square kilometers known as the "Mehsana Block". This block was awarded to the Company along with GSPC and Jubilant in the NELP-IV bidding round.

Sanand/Miroli Block

As at August 13, 2008, fourteen wells have been drilled on this block. Of the fourteen wells, thirteen are exploration wells and one is an appraisal well. Five wells (M-1, M-6, SE-2, SE-4 & SE-8) have been notified to the GOI as discovery wells on this block.

During the three months ended June 30, 2008, two wells (SE-9 and SE-5) commenced and completed drilling. The SE-9 was drilled to a total depth of approximately 2,100 meters and was subsequently abandoned. The SE-5 well was drilled to a total depth of approximately 2,000 meters and was tested. The SE-5 well is currently suspended awaiting further testing after hydro-frac stimulation.

GSPC, as operator, advised DGH on June 12, 2008, that it had completed the Phase I MWP of drilling twelve exploratory wells and would be entering into the Phase II exploration phase on this block effective July 28, 2008. As one well from Phase II has already been drilled, two further wells are planned to be drilled to approximately 2,000 meters each prior to January 28, 2009 in order to meet the MWP of Phase II.

The Company has a 10% participating interest in an area of approximately 285 square kilometers known as the "Sanand/Miroli Block". This block was awarded to the Company along with GSPC, Jubilant and Prize Petroleum Company Limited in the NELP-IV bidding round.

Ankleshwar Block

As at August 13, 2008, four exploratory wells have been or are being drilled on this block. During the three months ended June 30, 2008, the Ank-7 well completed drilling at a total depth of approximately 1,600 meters while the Ank-1 and Ank-8 wells continued to drill.

Subsequent to June 30, 2008, the Ank-1 well completed drilling at a total depth of approximately 2,600 meters and the Ank-8 well completed drilling at a total depth of approximately 2,100 meters. The Ank-7, Ank-8 and Ank-1 wells are currently suspended awaiting testing. One well (Ank-10) commenced drilling and continues to drill. At last report, the well was at an approximate total depth of approximately 300 meters.

The Company has a 10% participating interest in an area of approximately 448 square kilometers known as the "Ankleshwar Block". This block was awarded to the Company along with GSPC, Jubilant and GAIL (India) Inc. in the NELP-V bidding round.

DS Blocks

During the three months ended June 30, 2008, the Company has completed the preliminary field work, mapping and the geochemical survey of acquiring 1,036 samples and are in the process of finalizing a report on a geological survey taken over both blocks. The Company is expecting to complete the gravity magnetic survey required under the Phase I MWP by March 31, 2009.

Further, the Company plans before March 31, 2009, to acquire an experimental 2-D seismic program of approximately 50 LKMs over each block to further enhance its imaging.

The Company has a 100% interest in an area of approximately 3,155 square kilometers known as the "DS03 Block". This block was awarded to the Company in the NELP-V bidding round.

The Company has a 100% interest in an area of approximately 2,649 square kilometers known as the "DS04 Block". This block was awarded to the Company in the NELP-VI bidding round.

RJ Blocks

During the three months ended June 30, 2008, OIL, as operator tendered the 3-D seismic acquisition program over both blocks.

Subsequent to June 30, 2008, OIL signed a contract for the 3-D seismic acquisition program for the RJ20 and RJ21 blocks. The contract entails the acquisition of 700 and 611 sq. kms. of 3-D seismic respectively, and is anticipated to start in the third quarter of 2008.

The Company has a 25% participating interest in an area of approximately 2,196 square kilometers known as the "RJ20 Block". This block was awarded to the Company and OIL in the NELP-VI bidding round.

The Company has a 25% participating interest in an area of approximately 1,330 square kilometers known as the "RJ21 Block". This block was awarded to the Company along with OIL and Hindustan Petroleum Corporation Limited in the NELP-VI bidding round.

 


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