Premier to target Renji formation at Cachar

Vol 9, PW 16 (17 Nov 05) News in Brief

Premier Oil plans to target a hitherto unexplored formation in its first well at Cachar exploration block CR-ON-90/1 planned for next year.

This is the Renji formation, we learn. Nobody has ever managed to reach this formation on this block.

Previous operators ONGC and Burmah Oil Company made six attempts to reach the Renji formation, but were beaten back by geological difficulties. Drilling on this block has encountered high pressures and formation instability, we learn.

The moment the drill bit reaches a certain depth the formation around collapses. The geology of this block is very complex and is marked by high tectonic stress.

Premier is looking for a rig and will most likely settle for a rig from overseas. Premier is also awaiting approval from the oil ministry for its proposal to farm out 20% of its participating interest to Oil India.

Premier has 49% participating interest, Indian Oil has 35% and Essar Oil has 16%.