Shanti Ispat plans 4 wells at DSF-2 block

Vol 24, PW 19 (12 Aug 21) Exploration & Production

Chhattisgarh-based Shanti GD Ispat and Power (SGDIPL) is hoping for better luck than its predecessor, Prize Petroleum, as it prepares for a four-well development drilling campaign at DSF-2 block CB/ONDSF/Sanganpur/2018 in Gujarat.

Shanti wants to drill four development wells at the Mehsana block, each up to 2000 metres. "We will finalise the well locations after evaluating the results of geological and engineering studies," confirms a company source.

Shanti received environment ministry Terms of Reference (ToR) on July 28 (2021) after an application submitted on July 26 (2021) to undertake a detailed EIA study ahead of clearance to begin drilling. Under the estimated Rs28.9cr ($3.9m) campaign, Shanti wants to set up production facilities at new or old well locations, depending on the results of workover jobs at old wells, at an estimated cost of Rs30 lakhs/facility ($40,400).

"We will develop a surface production facility at any of the old or new well sites," adds our Shanti source. "More facilities will be set up if needed."

According to a pre-feasibility report from Surat-based Envirocare Technocrats, each of the four new wells will take up to 45 days to drill to up to 2000 metres TD at an estimated cost of Rs7cr ($955,000) each. Our Shanti source tells us the company expects each well to produce around 20 cm/d (125.8 b/d) oil and 10,000 cm/d of associated gas.

He adds Shanti will transfer oil to temporary storage tanks for onward delivery and processing. Shanti says it will use any associated gas in the bath heaters to maintain fluidity and supply any remaining gas to local buyers through an underground flow line.

But Shanti insists buyers must lay the pipelines from the EPS gas manifold to their factories. Shanti said it would overhaul and maintain the old Sanganpur-1, Sanganpur-2 and Sanganpur-1A wells at the block.