Heramec to double gas production from Kanawara

Vol 12, PW 6 (07 Aug 08) Exploration & Production

Hyderabad-based oil and gas minnow Heramec will double gas production from its Kanawara field in Gujarat to 20,000 cm/d by the end of this year.

Kanawara currently produces around 10,000 cm/d gas (along with 120 b/d oil) which Heramec sells to three customers: one pays Rs7.20/cubic metre; while the other two pay Rs10.51/cubic metre. More gas at Kanawara is expected following two development wells Heramec plans to drill at the field.

Finding buyers won’t be a problem. “Customers are not an issue,â€‌ Heramec tells us.

“We don’t have to do anything, they’ll just line up before additional production begins.â€‌ Heramec says if additional production is 10,000 cm/d only, it will increase supplies to existing customers, but if the additional gas is more than 15,000 cm/d, it will approach new customers.

Heramec is implementing an eight-well drilling campaign at its four onshore Gujarat fields: Kanawara, Allora, North Kathana and Dholasan. Four will be development wells and four exploration-cum-development wells.

Sometime this week, a new 1000-hp rig owned by Tuff Drilling will spud an exploration-cum-development well at the Allora field, while a Dewanchand Ramsaran rig will spud a development well at the North Kathana field. TD for the Allora-2 well is 3000 metres to the Mandhali formation, which corresponds to Kalol-IX sediments; TD for the North Kathana-4 well is 2700 metres to Olpad formations.

Heramec will also drill two wells at Dholasan: one development and one exploration-cum-development well. At Kanawara it will drill four: two development and two exploration wells.

Heramec has budgeted around $2m for each development well and $3.5m for each exploration well. “The drilling campaign is expected to take between 150 and 180 days since both rigs will be working in parallel,â€‌ we hear.

“Wells that are 1800 metres deep will take about 20 days to drill while 45 days is needed to drill wells 3000 metres deep.â€‌