Mercator strikes oil with maiden Gujarat well

Vol 17, PW 23 (03 Jul 14) Exploration & Production

Call it beginner's luck - Mercator Petroleum executives won't mind, they'll be too busy celebrating! Mercator has struck oil and associated gas at the first exploration well drilled at its Cambay onland block near Bharuch city in Gujarat.

On June 27, Mercator released John Energy’s 1100-hp rig John#19 from the 132-sq km CB-ONN-2005/9 asset after drilling well Jyoti-1 well to between 2900 metres and 3000 metres. "Mercator has set in casing and is completing the well for testing," says an industry source.

On June 30, Mercator said it was busy preparing a "discovery note" for the DGH, a mandatory requirement under the PSC. "BN Talukdar (DGH director general) was informally told of the discovery by phone," says Mercator.

Mercator spud Jyoti-1 on May 12, targeting Olpad, Kalol, and Cambay formations. John is moving rig John#19 to drill exploration well Dharti-1 at Mercator's adjacent 48-sq km CB-ONN-2005/3 block straddling Mehsana and Ahmedabad districts.

A John source says the rig should reach location on July 3 or 4 to drill the well to 2200 metres TD, again targeting Olpad and other formations. Mercator will analyse results of the first exploration wells at each block against seismic to decide how many wells to drill next.

"Analysis can take a few months," we learn. "After that, we'll decide locations for the remaining Phase-I committed wells.