Niko begins three-well appraisal at Hazira

Vol 13, PW 18 (25 Feb 10) Exploration & Production

Canadian explorer Niko Resources (33%) this week begins a three well appraisal programme at the Hazira gasfield in a campaign to reverse falling production at the ageing field, which it shares with GSPC (67%).

PETROWATCH learns a 1500-hp rig from John Energy is scheduled to spud the first appraisal well today (Thursday, February 25) in a campaign expected to last up to four months. Based on the results of a freshly carried out 27-sq km 3D seismic survey, the first of the three wells will be drilled to a depth of1600 metres while the second will be to 1650 metres and the third will be drilled to a depth of 3300 metres.

“Niko is investigating the structure edge to see if there’s any trapped gas,â€‌ reports a source. “In particular Niko is looking for trapped gas off the flank of the main structure.

These are analogous sands to the main fields but a different stratigraphic play.â€‌ Will Niko convert these three wells into producers or drill additional producers later “It’s too early to say,â€‌ adds our source.

Equally difficult to predict is when the campaign will make a material difference to gas production from the field, which has seen a marked decline from highs of 4.7m cm/d in 2005 to 1.5m cm/d in 2008 and an all-time low of 1m cm/d last year. Currently the Hazira gasfield is producing just 1.2m cm/d.

An indication of the importance given to the Hazira gasfield was evident with a day-long site visit by GSPC managing director Tapan Ray on January 30. “This was his first field visit as MD,â€‌ we hear.

“He talked to the Niko engineers in charge of drilling and asked questions about how drilling operations would be taken forward.â€‌ Ray, we hear, took great interest in the physical infrastructure on the field and visited the Land Based Drilling Platform, which houses 17 of the 33 wells at Hazira located 1.2-km from the coastline and the 4m cm/d gas receiving terminal.