Too early to celebrate Reliance gas strike

Vol 16, PW 19 (18 Apr 13) News in Brief
     

Reliance believes it’s too early to celebrate news of a major gas discovery at the MJ-1 exploration well at KG-DWN-98/3, which includes the depleting D1 and D3 gasfields.

“Reliance has yet to test the well,” reports a source on April 11. “That is why no announcement has been made.

” Reliance is expected to carry out a MDT (Modular Dynamic Test) followed by a DST (Drill Stem Test) in the days ahead once drilling is completed. Reliance is exercising extreme caution and not making an announcement until the well is tested and gas flows to surface.

“Reliance has seen significant signs of gas in one zone while drilling,” we hear. “It is very encouraging.

But it could be background gas which is encountered many times and of no commercial value.” In water depths of 1025 metres, Transocean drillship DD-KG2 spud MJ-1 well in early March.

Expected to cost more than $40m, MJ-1 is being drilled to 4500 metres TD, targeting the cretaceous geological formation.

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