High hopes from exploration wells at KG-DWN-98/2

Vol 9, PW 5 (16 Jun 05) Exploration & Production

ONGCs present KD-1-3 well is expected to have incident free drilling to reach target depth of 3100 metres around 1st July.

If the logs are encouraging testing will be carried out. If theyre not, Discoverer will move to the next location at NELP-I deepwater block KG-DWN-98/2, formerly operated by Cairn Energy but now operated by ONGC.

This is the first time ONGC will drill a well on this block. Water depth for the location is likely to be around 1000 metres and target depth is believed to be 2600 metres.

DGH officials believe this location and this block in general could hold much promise for ONGC. DGH and ONGC officials met in Chennai early June to review Discoverers first drilling location on KG-DWN-98/2.

The data we saw for this location looked fine, says a DGH source. To us it looks like a certain gas find.

We are told that ONGC could find more gas on this block than in KG-OS-DW-IV, which holds the two successful Vashishta wells. Theres a hydrocarbon bearing channel clearly seen running through this block (KG-DWN-98/2).

What is important, we are told, is that this channel is seen to culminate in the nearby Reliance-operated NELP-I block KG-DWN-98/3, which holds about 14-tcf. ONGC has several drilling locations lined up on KG-DWN-98/2.

DGH officials say all these locations were selected by Cairn Energy after carrying out extensive seismic surveys. All the work on these new locations has been done by Cairn, we are told.

The work looks good. If ONGC does not get a good hit on this location it means they dont know how to drill.

Cairn was awarded this block in 2000 and carried out a 1500-sq km 3D seismic survey in April-June 2000. A year later Cairn announced the Annapurna gas discovery as well as the Padmavati and Kanak Durga oil discoveries.