Daewoo drills three dry holes at block A-1 in Myanmar

Vol 10, PW 6 (13 Jul 06) Exploration & Production

Operator Daewoo of South Koreas has drilled three dry holes at offshore Myanmar shallow water block A-1, where Indias ONGC Videsh and GAIL have a combined 30% stake.

Daewoo drilled six wells at A-1 during the 2005-06 drilling campaign on the block that was completed sometime mid-May. All the wells were drilled to the Pliocene level.

Three of these were exploration wells and three were appraisal wells. One exploration well was drilled on the promising Ngwe prospect and two east of the Shwe discovery.

Disappointingly, all of them turned out to be dry holes. Says a source in Yangon: From the seismic the Ngwe location promised to be prospective but the drilling result was not at all encouraging.

Ditto for the two exploration wells east of the Shwe discovery. All the exploration wells were drilled in water depths of between 120 and 135 metres to target depths of around 3200 metres.

All the three appraisal wells confirmed the extent of the Shwe discovery made by Daewoo on the block in December 2003. We are told that only one of the three appraisal wells was tested.

All the wells could not be tested because of poor weather conditions, we learn. Drilling and testing was to be completed by April but had to be extended till May because the weather turned bad and the rigs had to be taken back to the base.

Daewoo lost about two weeks because of this. The single well that was tested flowed 40m cf/d through a 44/64-inch choke.

This flow rate, we are told, is slightly less but quite comparable with the flow rate recorded at the Shwe discovery well. Daewoo is now examining the results of the drilling programme and carrying out geological modelling before deciding on the next course of action at A-1.

In addition revised reserves estimates are also awaited for A-1. These should have been made available by June but Daewoo, it seems, has now indicated that they will come in only by August.