Disappointment as GAIL drills dry Cambay hole

Vol 19, PW 21 (30 Jun 16) Exploration & Production

Disappointed GAIL is forging ahead with plans for a third well of its eight-well exploration programme at 131-sq km NELP-IX onland block CB-ONN-2010/11 despite disappointment that the second well was dry.

PETROWATCH learns GAIL is planning to spud third well Galiyana-1 by end-July or early August in the Tarapur area of Anand district, around 8-km from the second (dry) well Nabhoi-C, which it plugged and abandoned end-June. GAIL had high hopes at Nabhoi-C, spud on May 27 using John Energy's 1000-hp rig John-27 and drilled to 2200 metres TD, with cementing carried out by Halliburton.

This was because of unconfirmed reports of oil traces at the first well Dugari#1 spud on March 27 and drilled to 2583 metres TD by May 6. However the bad news at Nabhoi-C has dampened spirits at GAIL and it's anybody's guess whether it will have any luck with the third well Galiyana-1.

Assam-based Udipta Energy has supplied GAIL with water-based mud for this drilling campaign, Schlumberger is doing the well logging, Jindal Drilling is responsible for mud logging and Delhi-based Enquest is project management consultant. Depending upon the results of the first five 'firm' wells GAIL will take a call on whether to proceed with the remaining 'three' optional wells.

According to the DGH, total estimated exploration costs at the block will be $29.06m and total estimated development costs, assuming a discovery will be $87.17m.