GNRL plans 18 more wells at 3 Cambay fields
After Kanawara and North Kathana, GNRL Oil and Gas, formerly Heramec, is turning its attention to three other pre-NELP fields.
GNRL wants to drill 18 development wells across the Dholasan, Allora and Unawa fields, a project similar to its planned 12-well campaign at Kanawara and North Kathana, also in Gujarat, which we reported on March 23 (2023). Gujarat Pollution Control Board (GPCB) officials have organised three public hearings in Mehsana district: the first on May 3 (2023) at Allora village for the 6.85-sq km Allora field; the second on May 5 (2023) at Unawa village for the 5.65-sq km Unawa field; and the last on May 6 (2023) at Dholasan village for the 8.8-sq km Dholasan field.
Under the estimated Rs100cr ($12.2m) campaign, GNRL plans six wells at each field at Rs5.5cr ($672,000) per well. GNRL also proposes an Early (EPS) or Quick Production System (QPS) and believes it can produce up to 125 b/d of incremental oil and 10,000 cm/d of incremental associated gas from each Dholasan and Allora well.
At Dholasan, the wells will be drilled to depths of up to 2000 metres and at Allora, up to 2300 metres. At Unawa, GNRL expects 125 b/d of oil and 5000 cm/d of associated gas from each well drilled to 1700 metres TD.
"Work will start when we get all approvals," confirms a company source. "We estimate the project will take three years."
What explains GNRL's sudden burst of interest in development drilling? Look to the oil price of $81.69/barrel on April 18 (2023), likely to trend up after Saudi Arabia and the Gulf states announced production cuts on April 2 (2023). Discovered in January 1967, Allora saw ONGC drill four wells: AL#1 was an oil well, but three others were plugged and abandoned.
In 2001, field ownership passed to operator Heramec (now GNRL), GSPC and HOEC. But on August 18 (2004), HOEC assigned its entire 25% stake to GSPC, and on July 8 (2021), GSPC assigned its 70% operator stake to GNRL, which now holds 100%.
In 2008, HOEC drilled one well at the field, which was not commercially viable.