Niko on second well at Cauvery block CY-ONN-2003/1
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.
†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 objective†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,†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,†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,†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.
†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.