Premier begins testing well in Assam
Premier Oil begins testing its Lakkhi-1 well in Assam this week - its first exploration well in India.
We understand case hole logging at the well in block AAP-ON-94/1 lasting two days will be followed by two Drill Stem Tests of five days each. There are traces of oil and gas, reveals a source.
But Premier wont know what its really got until it fully tests the well. If there is something significant more tests will be carried out.
If theres nothing significant the well will be suspended or abandoned. On 21st July, Premier reached target depth of 4345 metres.
Phase-1 of the exploration work programme at this block ends in November this year and committed Premier to one exploration well. Phase-II lasts two years and commits Premier to another two exploration wells.
Premier is using an Oil India rig at this 652-sq km block and has a 38% stake. Indian Oil holds 27%, HOEC holds 25% and Oil India holds 10%.