Weekly Update from Bligh's web site:
Press Releases
DRILLING ACTIVITY AND PROJECT STATUS REPORT, May 22, 2001
22 May, 2001
The Manager
Company Announcements Office
Australian Stock Exchange Limited
10th Floor, 20 Bond Street
Sydney NSW 2000
Dear Sir
DRILLING ACTIVITY AND PROJECT STATUS REPORT
NEW ZEALAND - PEP38719, Taranaki Basin, Bligh Interest: 5.00%
The Kauri-1 exploration well is currently drilling ahead in 12 ¼" hole, at a depth of 1670 metres.
Kauri-1 will be drilled to a total depth of 4500 metres to evaluate the Tariki sandstone, Rimu limestone and Cretaceous sandstone reservoirs within upper and lower thrust blocks in the large Kauri structure. The well is expected to take 40-45 days to reach total depth.
The Kauri structure is situated immediately south of the Rimu structure, extending in part offshore. The Tariki sandstone and Rimu limestone reservoirs, which flowed oil and gas in the Rimu structure, are to be intersected approximately 200-400 metres high to their intersections in the Rimu wells. It is considered likely that the Rimu and Kauri structures could be laterally continuous, and the Kauri well has the potential to lift the reserve potential of the trend into the range of 100-150 million barrels of oil equivalent.
NEW ZEALAND - PML 38141, Taranaki Basin. Bligh Interest: 1.62%
The Te-Popo-1 well is currently drilling ahead in 8 ½" hole at a depth of 2069 metres. The well is being drilled to evaluate the north-eastern extent of the Tikorangi reservoir in the Waihapa-Ngaere field, in which Bligh holds a 1.62% interest through its 50% owned subsidiary, Bligh Oil & Minerals (NZ) Ltd.
UNITED STATES- Bayou Choctaw Project, Louisiana, Victory Financial Lease. Bligh Interest: 22.50%
The Icon Victory Financial No. 1 well has been drilled to a depth of 7277 feet, and 10 ¾" surface casing set at approximately 2500 feet. At a depth of 7248 feet, the well encountered significant hydrocarbon shows, associated with an overpressured 2 foot zone, which is either a thin sand or a fault zone. The zone lies 200-300 feet above the secondary objectives of the well, which is the productive sands of the Marg Idi, Marg Howeii and Cib. Hazz formations, in which most of the 23 pay zones of the Bayou Choctaw field lie. The VFL 1 well was intended to target 8-10 of these zones for completion, to recover undrained oil updip of the historical production, at depths in the interval from 7400 feet to 8200 feet. Independent engineering study credits the VFL 1 location with proved undeveloped recoverable reserves in excess of 750,000 barrels of oil at these levels. Once casing has been set at around 8300 feet, it is intended that the well be drilled to test for
substantial oil and gas reserves in the probable and possible categories in the deeper Marg Tex and Bol Mex formations, which are the primary objective, at depths of 9000-10,000 feet.
The attempt to control the excess pressure associated with the 2 foot zone has caused differential sticking of the drill pipe at total depth of 7277 feet. As a result, it has been decided that the optimum course of action lies in backing off the drill string, setting a cement plug immediately under surface casing at 2500 feet, and sidetracking the well. This process has been initiated, and it is anticipated that drilling will recommence in 3-4 days. While unfortunate, the problem is not uncommon in the South Louisiana salt basin. It will, however, involve additional expenditure in order to re-drill the well to target depth.
The VFL 1 is located on approximately 500 acres of leasehold controlled by Icon Oil NL and Bayou Choctaw Inc. on the north flank of the dome, in which Bligh is earning a 22.50% interest. Following completion of the VFL 1, Bligh intends to propose the drilling of the Wilberts 93 well, located on the west flank of the salt dome, on 1523 acres of leasehold in which Bligh is the operator and controls 83.33% working interest. Under the terms of the agreement between Bligh and Icon/BCI, Icon/BCI have the right to earn an additional 23.33% interest in Bligh's Wilberts lease, such that the interest will ultimately be shared 60-40. 10-20 proved undeveloped locations, most with deep gas potential, have been identified on our joint holdings in the area. The VFL 1 is the first of a comprehensive program of wells to be drilled over the coming two years.
BLIGH OIL & MINERALS N.L.
Surrey Bogg
Chairman |
