The Canadian upstream firm Canoro Resources Ltd has abandoned its latest exploration well in the north eastern block AA-ON/7. The operating committee of the block has decided to plug and abandon the Borkathani exploration well after no commercial reserves were found during a series of testing operations, Canoro sources have revealed. The shallow drilling rig shall now be released from the current location.
The development comes shortly after the government approved a proposal to extend the exploration period of AA-ON/7, which falls between the militancy prone Assam and Nagaland border, from five years to seven years in order to provide the contractor more time to complete additional work programme in the Nagaland part of the block.
Canoro, the operator with a 65% stake in the block is keen to exploit new areas in the acreage especially after the failed test on Dolakharia. Prior to Dolakharia, Canoro had to abandon its first exploration well, Sonakhet, in the Assam block, because the well did not encounter any major hydrocarbon bearing sands. Also subsequent drill stem tests (DST) carried out on various zones were not very encouraging.
The E&P firm recently acquired an advanced 140 line kilometers (LKM) of 2D seismic in the 1,089 sq km Assam block. Readers would note that budget for AA-ON/7 for the fiscal year 2008 alone has been earmarked for Rs 16 crores, subject to a petroleum ministry review.