Niko on second well at Cauvery block CY-ONN-2003/1

Vol 11, PW 11 (04 Oct 07) Exploration & Production

Niko Resources has spud a second exploration well at onland Cauvery Basin NELP-V block CY-ONN-2003/1, where it is operator with 100%.

PETROWATCH learns rig High Arctic spud the Gahpavanam-01 well on September 5 and has assigned it a TD of 2800 metres. Last week, the drill bit reached 1400 metres and, says a source: “Drilling is so far smooth and without incident.

â€‌ TD is likely to be reached around mid-October. Before being deployed at the second location, High Arctic finished drilling her first well, Agraharam-01, on this block around August 30.

This well was originally assigned a TD of 2200 metres but Niko terminated drilling at around 1900 metres when the “desired objectiveâ€‌ was reached. Niko has yet to do a Modular Dynamic Test or Drill Stem Test at this well.

“The well has been logged and the results are being tied into the geology and evaluated,â€‌ we hear. Unclear is if any hydrocarbon shows were reported during drilling but Niko is confident of striking oil on this block, where it has mapped around 10 leads.

Gahpavanam-01 is on a different prospect south of Agraharam-01, we are told. Niko is in Phase-I of the exploration period and has committed to drill five wells.

Only two of these are likely to be drilled by the 850-hp High Arctic while a 1500-hp rig would be required to drill the other three, deeper, wells. “Each well is catalogued against a particular geological model,â€‌ we hear.

On September 23, meanwhile, Geofyzika Torun of Poland completed 945-sq km 3D across the block. “The block measures about 960-sq km, so almost the entire area is now covered with seismic,â€‌ we are told.

Niko plans to process the seismic in Canada. The Phase-I minimum work programme commits Niko to shoot only 550-sq km 3D seismic, “but they went ahead and covered the entire block because they seem confident.

â€‌ Analysts predict CY-ONN-2003/1 could contain around 100m barrels of light oil. If Niko decides to enter Phase-II, it will have to drill two exploration wells.

Ditto for the optional Phase-III.