Page 12 - LatAmOil Week 07 2020

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NEWS IN BRIEF
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Argentina: Echo Energy
announces non-commercial
gas find at CLM x-1 well
Echo Energy has announced a non-commercial gas discovery at the Campo La Mata Exploration well (CLM x-1) in the Tapi Aike licence follow- ing completion of testing on the lower second- ary target (D3 or Anita) and the primary target (Magallenes 20 or Lobe C).
e lower secondary Anita target was per- forated over an 8-metre interval between 2,395 metres and 2,403 metres and then mechanically stimulated. Following clean out operations, the secondary target flowed at surface at an esti- mated rate of up to 570,000 cubic feet (16,140 cubic metres) per day, with an estimated average rate of 350,000 cubic feet (9,911 cubic metres) per day.
The Anita target also yielded condensate with an API gravity of 50 degrees, with a ow rate as measured at the well head at an estimated 7.5-18.0 bpd. e presence of condensate is in line with the mud-log, with 25% of higher-end (non-methane) components, and with the Anita target elsewhere in the basin.
e primary Lobe C target was perforated over a 3-metre interval between 2,214 metres and 2,217 metres and mechanically stimulated. Following clean out operations, the well owed at surface at an estimated rate up to 280,000 cubic feet (7,929 cubic metres) per day with an estimated average rate of 250,000 cubic feet (7,080 cubic metres) per day. No condensate was retrieved from the interval, which is in line with the mud-log showing 93% methane.
To achieve the threshold of commerciality, it is estimated the well would require a stabilised production rate across the intervals of approxi- mately 1mn cubic feet (28,320 cubic metres) per day, which was not achieved from the Anita and Lobe C targets.
As a result, testing of the shallower Magal- lenes 60 interval, which was the upper secondary target of the CLM x-1 well, and the Magallenes 40 interval is now under consideration with the objective, in aggregate with the ow rates achieved from the intervals already tested, of seeking to exceed the commercial threshold. These additional sand intervals showed ele- vated gas shows during drilling, and whilst there can be no assurance that further testing and/or commerciality of the well will follow, further technical work will now be undertaken by the Tapi Aike partners to aid the consideration of whether testing of these additional intervals should be undertaken. In the interim, the CLM x-1 well will be shut in for evaluation and the
Well Head Pressure will be measured during this time.
Whilst the lack of commerciality from the tested intervals is disappointing, the CLM x-1 well has proven the presence of a working petro- leum system on the Chiripa Oeste 3D seismic in Tapi Aike, with the Class III amplitude vs o set (AVO) characteristics being a successful predictor of the presence of gas. e data and information collected to date from the CLM x-1 well will be used to calibrate and further enhance the predictive capability of the 3D data acquired last year to identify other drilling locations that could be commercial.
Following the gas discovery as a result of this well result, it is anticipated that the Tapi Aike partnership will qualify for an extra year on the rst Tapi Aike exploration period. An extension would take the current exploration licence phase to four years expiring on September 7, 2021, without additional commitments, enabling additional technical work to identify commer- cially viable drill locations. e operator of the Tapi Aike licence will request the additional year from the Santa Cruz Province and no issues are anticipated in obtaining the additional licence year.
The Tapi Aike partnership are evaluating the independent plays in the recently processed western seismic (Travesia de Arriba) with a view to drilling a well in this area later this year.
Martin Hull, CEO of Echo Energy, com- mented: “It is a disappointment that our ini- tial exploration well at Tapi Aike has returned non-commercial flow rates from the tested intervals. Data from the CLM-x-1 well will now be used to calibrate and further inform our sub- surface model and the JV partnership will use this enhanced dataset to identify future drilling locations on the licence. It is anticipated that the second Tapi Aike Exploration well will spud in H2-2020.
“At Santa Cruz Sur, we expect to commence testing shortly on the recently drilled Campo Limite (CLix-1001) well. We look forward to
updating the market on the results of the CLix- 1001 testing operations in due course.”
Echo Energy, February 19 2020
Karoon Energy reports
disappointment at
Marina-1 exploration
well offshore Peru
Karoon Energy’s Marina-1 exploration well in Block Z-38 Tumbes Basin o shore Peru has now drilled down to a depth of 3,021 metres MD near the top of the Cardalitos Formation.
Mudlogging and LWD logging results from the Primary targets in the Tumbes Formation indicated that the well encountered thin water bearing sands with no oil and only minor gas shows.
Final logging is now being completed and Marina-1 will be plugged and abandoned.
Marina-1 provided a large amount of valua- ble data on the geological setting for this region of the Tumbes Basin. Several potential reservoir sequences were encountered in the well, unfor- tunately these sections were water wet and pro- vide no prospectivity at this location. e well results will now be thoroughly analysed, but no further drilling is planned in Block Z38 in this campaign.
Operationally the well has progressed to plan, on time and within budget, with no safety or environmental incidents. e total drilling operation is still estimated to take 30 days.
Karoon’s primary focus continues to be com- pleting the Baúna acquisition and delivering on our growth aspirations in Brazil.
Karoon’s wholly owned subsidiary, KEI (Peru Z-38) Sucursal del Peru, owns a 40% operating equity interest in the Block Z-38 with Tullow Oil holding 35% and Pitkin Petroleum holding the remaining 25% equity interest.
Karoon Energy, February 17 2020
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Week 07 20•February•2020