Niko to finish Hazira well testing by August

Vol 14, PW 22 (05 May 11) Exploration & Production

Canadian explorer Niko Resources once considered the 50-sq km Hazira gasfield in Gujarat, which it shares with GSPC, its most prized asset.

But now Niko is racing against time to extend the production life of the depleting field. As of March 2011, production at Hazira stood at 491 b/d from one producing oil well, and 559,190 cm/d of gas from 21 wells.

But just nine months ago Hazira gas production was nearly double that quantity: 1m cm/d, while oil production stood at 580 b/d. Hazira’s present gas production figures are especially disheartening if you consider how far they’ve fallen from peak levels of approximately 4.7m cm/d back in 2005.

Yet neither Niko nor GSPC has given up on Hazira and they are eagerly looking forward to the results of a three-well appraisal programme carried out in February last year. Niko expects to test and ‘complete’ these three appraisal wells by August 2011.

“All future production activity at Hazira will depend on the analysis of these test results,” says a senior Niko source, “as will any future drilling programme.” He adds that a Niko team in Calgary has carried out a ‘detailed analysis’ of core samples from two of the three Hazira appraisal wells.

Earlier this year, we are told, Niko made a presentation to the DGH and GSPC about its plans to test and complete the three Hazira appraisal wells. “The DGH and GSPC approved our plans in March,” we learn.

“Completion work and testing should be concluded in the next 90 days.” Still unclear is whether Niko will eventually convert these appraisal wells to production wells or if it plans to drill additional production wells at Hazira.

“It’s too early to comment,” we hear. Hazira is the oldest producing field for Niko (33%) and GSPC (67%) and has been producing mainly gas since 1994-95.