Drilling Update
28 Março 2008 - 4:01AM
UK Regulatory
RNS Number:9724Q
Indago Petroleum Limited
28 March 2008
Indago Petroleum Limited
(AIM: IPL)
Drilling Update
Indago Petroleum Limited has been advised that RAK Petroleum PCL today released
the following statement regarding the Al Jariya-1 well in Block 31, Oman of
which it is the operator.
"RAK Petroleum PCL, through its wholly owned subsidiary, RAK Petroleum Oman
Limited, is operator of Block 31, onshore the Sultanate of Oman, where we are
drilling the high impact exploration well called Al Jariya-1. This well is
located at Jebel Hafit, close to the border with Abu Dhabi.
Just after midnight on February 2nd, while drilling at a depth of 5131 metres,
we encountered a zone of high pressure and the well took an unexpected influx of
water and gas. These fluids were flowed to a pit especially created for such an
eventuality and after a few hours the flow was shut off at surface. The
resulting high pressures experienced at surface, and the hole condition at the
bottom of the well, have severely complicated rig operations. Boots & Coots,
the well control specialists, were present on the rig at the time of the well
control incident and have since placed an engineering team on site. Proceeding
in a steady, safe manner, we are intending to carry out surveys to ascertain the
current status of the open section of hole and then formulate a plan to ensure
that the problematic zone is isolated in the well.
In the meantime we have been examining the rock cuttings from the formation
encountered close to the bottom of the hole, along with temperature information
just prior to and during the well control incident. It is apparent that the
formation encountered immediately prior to the well control incident is a
limestone unit of Campanian age. This contrasts with the first reservoir
objective, the Natih formation, which is a shelf carbonate of Cenomanian age,
some 7 million years older. We now estimate the Natih to be between 20m and
180m (with a best estimate of 50m) deeper than the deepest point currently
reached. Furthermore, it should be noted that the main target Shuaiba (Thamama)
is anticipated to lie another 200m deeper than the top of the Natih, and
separated from the Natih by the Nahr Umr shale, a regional seal.
The source of the formation fluids which flowed to surface is uncertain.
Temperature information is not conclusive but the fluids could originate from
the limestone stringer encountered, or slightly deeper if a fault had been
intersected.
Our conclusions are:
1. The prospect probably remains untested at the Natih level, and even more so
at the Shuaiba (Thamama) level (which was forecast to contain the majority
of the pre-drill success case reserves).
2. In order to drill deeper than the current level we will, at the least, have
to abandon the existing section of open hole below 4591 metres and sidetrack
from inside the existing casing.
3. We estimate it will take approximately 3 weeks to place the well in state
where we could execute the sidetrack. However it is likely that specialist
equipment (expandable casing) will be required and that consideration, plus
allowing time for over pressure to dissipate, may result in moving the rig
and drilling the next exploration well before returning to complete
operations at Al Jariya.
The forward plan will not be formulated until we have obtained more information
about the state of the open hole section and discussed the various options with
our partners and the Ministry of Oil and Gas for the Sultanate of Oman, who are
closely following our activities.
RAK Petroleum PCL routinely insures itself, and its partners, for serious
operational events, such as an uncontrolled surface or sub-surface blowout. As a
result, we are in discussions with our insurers, who have visited the well site
and reviewed the incident with our operations team."
Indago CEO David Bremner commented,
"The past eight weeks have been difficult for both Indago and RAK. We are
hopeful, however, of getting back on track with the Al Jariya well if current
remedial operations prove successful. Clearly, the geological information
suggesting that the prospectivity remains substantially undiminished drives us
towards seeking to complete the well. Despite the additional well control costs
incurred recently, the company remains adequately funded for its budgeted
drilling programme. Furthermore the possibility that some, or even all, of the
incremental costs resulting from the well control incident may be covered by
insurance is very helpful".
Indago holds an approximate 50% interest in Block 31. The Operator, RAK
Petroleum PCL, holds the balance of the interest.
28 March 2008
Enquiries:
Indago Petroleum Limited
David Bremner, CEO + 1 805 708 4892
Martin Groak, CFO +44 20 7096 3460
JPMorgan Cazenove Limited +44 20 7588 2828
Barry Weir
Neil Haycock
Nabarro Wells +44 20 7710 7406
Marc Cramsie
College Hill Associates +44 20 7457 2020
Nick Elwes
Paddy Blewer
Website: www.Indagopetroleum.com
Notes to Editors:
Indago Petroleum
Indago Petroleum Limited is an oil and gas exploration company listed on the AIM
market of the London Stock Exchange. The Company is geographically focused in
the Middle East, currently exploring in the Sultanate of Oman, a politically
stable country with proven hydrocarbon reserves and an active gas market.
Following the disposal of its production and development assets and just over
50% of its exploration assets to RAK Petroleum PCL ("RAK Petroleum" or "the
Operator") in April 2007, Indago currently has an approximate 50% stake in three
exploration blocks onshore Oman (Blocks 31, 47 & 43A) operated by RAK Petroleum.
Review by Qualified person:
The technical information and opinions contained in this press release have been
reviewed by Don Scott, a qualified Geoscientist (BSc (Hons) Geology -
Southampton 1963, MSc Applied Geophysics - Birmingham 1964) and a Fellow of the
Geological Society of London since 1964.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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