Selan has high hopes for its Indrora field in Gujarat

Vol 11, PW 18 (24 Jan 08) Exploration & Production

Private sector Indian explorer Selan Exploration could soon see a sharp improvement in its fortunes, following the implementation of an eagerly awaited drilling programme across its five tiny fields in Gujarat.

This week, Bombay Stock Exchange-listed Selan expects to spud the first of between eight to ten appraisal and development wells across its Bakrol, Lohar, Indrora, Ognaj and Karjisan fields using an onland rig from KST Drilling of Malaysia, costing $18,500 per day. Earlier mobilised for Cairn India in Rajasthan, the KST rig is on location for Selan in Gujarat, where it is expected to spend two weeks on each well.

“Selan wants to drill an additional eight to ten appraisal wells beginning in the â€کfall’ (autumn),â€‌ we hear. “For that it is going out to tender for a second rig.

â€‌ KST Drilling has announced it will make another rig available in India for the Selan tender and other opportunities that might arise out of NELP-VII. Present production from the five Selan fields is paltry by international standards at around 320 b/d but in percentage terms the expected surge will be sharp.

“From next year onwards production from these fields will dramatically change the shape of the company,â€‌ reports a source. “Production could increase by anything from 20% to 40%.

If the Indrora field turns out to be anything like what Selan expects then it could be even higher.â€‌ Most of Selan’s present production is from Bakrol, but hopes are high for Indrora, where the company is testing new zones.

Until now Selan has reported little progress from its five fields, but the recent interpretation of a blanket 166-sq km 3D survey of Bakrol and Indrora, coupled with the advice of newly-appointed outside consultants gives the company renewed optimism. “Most of the production is from just one or two horizons at 1400 metres depth,â€‌ we hear.

“But there are many more horizons at 2000 metres depth. Saturation is good but there are also issues about shale and permeability.