Horizon Oil Limited announces that Horizon Oil (Thailand) Ltd., its wholly owned subsidiary, signed a concession agreement for Block G10/48 with the Royal Thai Government Ministry of Energy at a ceremony held in Bangkok last Friday. The Company and its partners had previously been advised that their group was the successful bidder on the block.
Horizon Oil (Thailand) Ltd. holds a 25% interest in the G10/48 concession in association with Pearl Oil (Thailand) Ltd (50% and operator) and Tana Oil & Gas (Thailand) Ltd (25%). The G10/48 concession is located in the southern part of the Gulf of Thailand immediately south of the giant Pailin field and west of the Bongkot field (see map below). Covering some 18,780 sq km, the concession contains the southward extension of the Pattani Trough which is the main producing basin in Thailand, with production of 2.2 bcf gas per day and 95,000 bopd.
The Pattani Trough is primarily a gas producing basin with many individual accumulations concentrated in the basin depocenter, where source rocks are buried to depths in excess of 5,000m and generate mainly gas. The oil production comes primarily from fields such as Benchamas and Jasmine at the northern end of the basin where source rocks are buried less deeply. The southern end of the Pattani Trough in Block G10/48 is thought likely to mirror the maturity profile of the northern end and to therefore be prospective for oil as well as gas. The last exploration activity in the area covered by Block G10/48 was conducted by Texaco prior to 1996. Texaco drilled two wells, one of which, Mayura-1 drilled in 1994, was an oil discovery that flowed up to 500 bopd on test. The Mayura discovery, estimated to contain recoverable reserves of 10 – 15 mmbo, was deemed non-commercial at the time and Texaco eventually relinquished the block.
The concession allows the partners to explore for hydrocarbons over a period of seven years and requires an agreed minimum work program to be carried out.
Commentary by Chief Executive Officer
“We are pleased to have renewed our partnership with Pearl Energy and Tana in being successful in acquiring such a significant exploration area in Thailand. Block G10/48 typifies Horizon Oil’s exploration objectives – it is a material acreage position in a fairway where the productive analogues are well understood, operating conditions are benign, oilfield services and infrastructure are abundant and where there is high local demand for both oil and natural gas. The block encompasses the complete southern end of the Pattani Trough and is covered by an existing large seismic database. We have mapped several large structures on the seismic data set. The existence of a working oil system has been proven by the Mayura discovery which is already covered by a 3D seismic survey and may itself be a candidate for early development.
For its size and location the area has been very lightly explored with only three wells drilled to date and this leaves considerable potential for what will be an active seismic and drilling campaign.
Our consortium has also submitted a bid on the neighbouring G11/48 block and we anticipate the results of the Thai Government’s deliberations on the award of that block within the next month or so.”