Indus Gas, an oil & gas exploration and development company with assets in India, has provided an update on its operations in Block RJ-ON/6. The company now has four deep drilling rigs dedicated to Block RJ-ON/6.
The Indian Shingli-1 well was the company’s first well aimed at assessing the tight gas play within the Baisaskhi/Bedesir (B&B) formation, reaching a depth of approximately 5,351mt and having intersected a 650mt interval in this sequence.
Schlumberger commenced fracturing of the Indian Shingli-1 well in December 2009 and, after a series of operations, a 12mt zone at a depth of between 3950mt and 3962mt was fractured with gas flowing to surface in several test sequences.
The frac stimulation was designed to be a pilot (being the first fracture stimulation of this formation in this basin) with the aim of obtaining an understanding of the pressure and flow rate required for the gas to flow freely to the surface, the company said.
The company has succeeded in injecting fluid into the formation at 18,036psi (surface pressure of 12,300psi) (Frac gradient of 1.38) at which pressure a free flow of gas was obtained.
The company said that the the results of the fracturing process will be known after the completion of the final stage, well flow back, which is currently underway, and detailed analysis. Progress and indications made to date, however, are encouraging and as such the company intends to pursue tight gas as a key new play within the block through a multi well and multi zone hydro-fracturing campaign in 2010.
The B&B formation, located in the western part of the block, is generally characterised by tight rock with low porosity and permeability but having extensive hydrocarbon shows during drilling. To achieve a better flow rate, this type of formation generally requires hydro-fracturing to allow the gas to flow freely from the fractured area, said the company.
The drilling on the Eastern Promise well is continuing towards target depth within the B&B formation, with the aim of further assessing the potential of the tight gas play within the block. The well is currently at a depth of 4,354m.
Indus spudded the Tirath-1 well recently. The aim of the well is to test the Pariwar and B&B formations in the north west of the Block. The well is currently at a depth of 1,736mt.
The company is now ready to spud the Sandwich-1 well. The drilling is planned to commence on or around January 27, 2010. Sandwich is intended to test the Pariwar and B&B formations in the central portion of the Block.
The company added that it has made progress, with all plant and equipment required to deliver first gas in Q2 2010 having been ordered and soon to be shipped to India. The distribution pipeline from the field to the end user, which is GAIL’s responsibility, is also progressing well.
The company intends to make the first drawdown under the recently agreed $110m debt facility in February 2010.