Daewoo near to finishing 2005-06 drilling at block A-1

Vol 10, PW 2 (18 May 06) Exploration & Production

Daewoo has almost finished its 2005-06 drilling campaign at nearby Arakans block A-1.

Six wells were planned at A-1 during 2005-06 and two semi-submersible rigs were deployed: Galaxy Driller and Nan Hai-II. Galaxy Driller was assigned four wells and Nan Hai-II was assigned two wells.

Galaxy Driller completed her fourth well on 5th May and de-anchoring of the rig began on the morning of 9th May. Galaxy Driller was scheduled to finally move out of location around 11th May.

The rig is being demobilised and will go to Singapore for another assignment as she has finished her work at A-1. Drilling of all the four wells assigned to Galaxy Driller, was a smooth affair but none of them has been tested.

Each of these wells was drilled in water depths of between 105 metres and 120 metres. Nan Hai-II is drilling her second and last well at A-1.

Both these wells were also in water depths of less than 120 metres. After finishing her current well, Nan Hai-II is expected to carry out testing of some or all the six wells drilled on the block.

Nan Hai-II is likely to complete her work by the end of June or early July, we hear. Daewoo estimate drilling and testing of each of the wells on A-1 in 2005-06 would take between 60 and 65 days.

It is unlikely that each of the six wells will be tested, we hear. Daewoo and Myanmar authorities will soon decide whether to develop block A-1 or A-3 first or parts of both together after offshore activity at A-1 and A-3 winds down ahead of the monsoon.

Both blocks lie next to each other, we hear. Developing them together is an option, Most of the prospective areas on block A-1 sit in water depths of between 90 metres to 150 metres.

Three prospects have been identified on A-1: Shwe, Shwe Phyu and Ngwe. By next month (June) a third party reserves consultant is scheduled to submit a reserves report on A-1.