Interlink to spud Modhera well next month

Vol 14, PW 16 (10 Feb 11) Exploration & Production

When Singapore-based Jit Sun Investments bought Interlink Petroleum for $3.6m in August 2008, many thought it an ill-advised investment.

A little over two years later, those same voices must be kicking themselves. BSE-listed Interlink is doing just fine and is planning to spud its first exploration well at its 12.7-sq km pre-NELP Modhera oilfield in Gujarat next month (March).

On January 1, Interlink hired a 1000-hp rig from Delhi-based drilling contractor Quippo Oil and Gas to drill one firm exploration well and one ‘optional’ appraisal well. “We plan to spud the (firm) well by March 10,” confirms Interlink.

“Quippo will soon start mobilising its rig to the site.” Interlink plans to drill this exploration well to up to 1900-metres TD or the ‘Olpad’ geological formation.

“We know there is oil in Modhera at shallower depths of around 1200-metres,” says a company source. “But that is ‘heavy’ oil of 12-degree API.

We want to target a deeper zone where we hope to discover ‘light’ oil.” He adds that Interlink has agreed to pay approximately $12,000/day to Quippo for the assignment and is also busy hiring 'directional drilling' services to target “deeper zones” in the proposed exploration well.

It could take Interlink two months to drill this exploration well, after which it could opt for an appraisal well. Meanwhile, Interlink is planning to drill yet another well soon at its 4-sq km Baola gasfield nearby to appraise an oil discovery.

Stock market investors went into a feeding frenzy last October after Interlink announced it had discovered 12-degree API ‘heavy oil’ at Baola-8 between 904.5 metres and 928 metres. “The well was tested for three weeks,” said Interlink.

“DGH representatives witnessed the oil flow to surface.”