Selan to re-hire John Energy rig for eight wells

Vol 18, PW 3 (25 Sep 14) Exploration & Production
     

Selan Exploration is set to renew its contract with John Energy to drill eight more development wells at its producing Indrora and Bakrol fields in Gujarat.

“We want to start drilling by October,” confirms Selan. “But are working out the exact dates.

” Selan aims to increase Bakrol gas production from 22,000 cm/d to 80,000 cm/d after the drilling campaign, which received DGH approval on August 1 following a Management Committee meeting on July 8. Five wells will be drilled at the 36-sq km Bakrol field: Bakrol#27, Bakrol#28, Bakrol#29, Bakrol#30 and Bakrol#31.

Three will be drilled at the 130-sq km Indrora field: Indrora#15, Indrora#16, and Indrora#17. Selan hopes to sign a fresh contract with John Energy for its 1000-hp rig John-28 by end-September.

Selan says current market rates for drilling rigs are around $20,000/day. When contacted, a senior John Energy source confirms negotiations are at an advanced stage.

Selan issued the rig tender on March 2 and received bids on April 21 from three companies, including John. Price bids were opened this month (September).

Each well will cost around Rs5cr ($800,000) and take 30 days to drill to 1600 metres TD. “Some wells will be vertical, others inclined,” adds Selan.

Selan’s rig contract will be for one year or eight wells, whichever is earliest.