Highlights
• POE-9A flows oil at 682 BOPD - constrained by slim hole casing and still cleaning up
• L44H-D2 - deepest well at Na Sanun East Oil Field has intersected oil shows. Up to four deep volcanic zones to be tested immediately
• NS3-D1ST - first horizontal development well at Na Sanun East Oil Field drilling ahead, with lost circulation of approximately 200bbls/hr encountered in volcanics
• Environmental approval received for 32 drilling locations at Na Sanun East and Wichian Buri Oil Fields
• Ongoing development, appraisal and exploration programme gathering momentum in Thailand
EXPLORATION PERMIT SW1
POE-9A Appraisal Well (Carnarvon 40%)
The POE-9A vertical appraisal well, located approximately 130 metres south of the NSE discovery well POE-9 is producing, on pump, from the main volcanic zone at rates of approximately 682 bopd, with a 6.5% BS&W, as the well continues to clean up. Based on the fluid levels recorded in the well bore, the current rate is believed to be restricted by the slim hole casing (4.5") design of the well. An earlier test of a deeper volcanic zone failed to
produce hydrocarbons at commercial rates.
EXPLORATION PERMIT L44/43
L44H-D2 Appraisal Well (Carnarvon 40%)
The L44H-D2 deviated appraisal well is currently logging after reaching a total depth of 2,357 metres measured depth ("MD"), 2,103 metres true vertical depth ("TVD"). This is the deepest well drilled on the Na Sanun East Oil Field.
In addition to the main volcanic zone, five deeper, never before tested volcanic intervals have been encountered at 1,079, 1,154, 1,483, 1,698 and 1,824 metres MD with measured thicknesses of 21, 6, 27, 62 and 26 metres respectively. Oil shows were observed while drilling at depths of 1,080-1,100m, 1,505-1,510m and 1,845-1,850m. Upon the completion of logging, it is anticipated testing will be conducted on up to four zones and take approximately 21 days to completion, at which time full results will be announced. Unlike POE-9A, which is in the southern fault compartment of NSE and was drilled to only one deeper volcanic horizon, L44H-D2 is in the central fault compartment of NSE and is planned to test multiple deeper volcanic zones.
NS3-D1ST Side Track Appraisal Well (Carnarvon 40%)
The NS3-D1ST high angle deviated/horizontal side track is currently drilling ahead at a measured depth of 928 metres (848 metres TVD) within a volcanic tuff above the main volcanic target zone. Lost circulation of approximately 200bbls/hr has been encountered in the volcanic tuffs that sit immediately above the main volcanic target zone. NS3-D1ST will deviate north of the original NS3-D1 well bore and is projected to drill an approximately 200 metre horizontal section of the main target volcanic. As part of this operation, the original NS3-D1 well bore has been abandoned and will be replaced by this new, horizontal side track.
Drilling is anticipated to be completed in approximately 12 days.
NS8-D1ST Side Track Appraisal Well (Carnarvon 40%)
Upon the completion of L44H-D2, the Aztec rig #14 will move to the NS8-D1 well location where, in exactly the same fashion as NS3-D1, a horizontal side track will be drilled utilizing the existing well bore.
Operations Update
Production is approximately 7,200 bopd gross (2,880 bopd net Carnarvon) with the NS3-D1 and NS8-D1 wells shut-in while horizontal side track operations are either underway, or about to be undertaken as part of the development programme to optimise the production wells.
Environmental approval has now been received for 32 drilling locations at the Na Sanun East and Wichian Buri Oil Fields. Construction is currently underway on location NSE9-G, located at the crest of the NSE central fault compartment where up to three horizontal wells are anticipated to be drilled from the same surface location, commencing in approximately 5 weeks. With the approval of the NSE development location in hand, production is anticipated to ramp up significantly over the coming three to six months.
Permit Holders
Pan Orient Energy (Operator) 60%
Carnarvon Petroleum 40%