Canoro rig for Amguri

Vol 14, PW 4 (12 Aug 10) News in Brief

Canadian explorer Canoro Resources wants to hire a rig for development drilling at its 52.75-sq km producing Amguri oil and gasfield in Assam.

PETROWATCH learns that by September or October, Canoro will float a tender for a 1500-hp to 2000-hp rig to drill up to three Amguri development wells. “We hope to begin drilling these wells in the second quarter of next year,” says a Canoro source.

He adds that a Canoro in-house team has carried out a geological survey of the block this year to better understand the reservoir. At the end of July, Canoro hired Fugro Geosciences for a second opinion on its findings, and the report is expected within 90 days.

“Hiring a consultant is cheaper than drilling a dry well,” explains Canoro. Canoro is also set to commission a gas compression facility at Amguri in the next two months and will start re-injecting gas into the reservoir to produce more condensate.

Canoro operates Amguri with a 60% stake while estranged partner Assam Company holds 40%.