Indago Petroleum Limited has been advised that RAK Petroleum PCL today released the following statement regarding the Al Jariya-1 well in Block 31, Oman of which it is the operator.
“RAK Petroleum PCL, through its wholly owned subsidiary, RAK Petroleum Oman Limited, is operator of Block 31, onshore the Sultanate of Oman, where we are drilling the high impact exploration well called Al Jariya-1. This well is located at Jebel Hafit, close to the border with Abu Dhabi.
Just after midnight on February 2nd, while drilling at a depth of 5131 metres, we encountered a zone of high pressure and the well took an unexpected influx of water and gas. These fluids were flowed to a pit especially created for such an eventuality and after a few hours the flow was shut off at surface. The resulting high pressures experienced at surface, and the hole condition at the bottom of the well, have severely complicated rig operations. Boots & Coots, the well control specialists, were present on the rig at the time of the well control incident and have since placed an engineering team on site. Proceeding in a steady, safe manner, we are intending to carry out surveys to ascertain the current status of the open section of hole and then formulate a plan to ensure that the problematic zone is isolated in the well.
In the meantime we have been examining the rock cuttings from the formation encountered close to the bottom of the hole, along with temperature information just prior to and during the well control incident. It is apparent that the formation encountered immediately prior to the well control incident is a limestone unit of Campanian age. This contrasts with the first reservoir objective, the Natih formation, which is a shelf carbonate of Cenomanian age, some 7 million years older. We now estimate the Natih to be between 20m and 180m (with a best estimate of 50m) deeper than the deepest point currently reached. Furthermore, it should be noted that the main target Shuaiba (Thamama) is anticipated to lie another 200m deeper than the top of the Natih, and separated from the Natih by the Nahr Umr shale, a regional seal.
The source of the formation fluids which flowed to surface is uncertain. Temperature information is not conclusive but the fluids could originate from the limestone stringer encountered, or slightly deeper if a fault had been intersected.
Our conclusions are:
1. The prospect probably remains untested at the Natih level, and even more so at the Shuaiba (Thamama) level (which was forecast to contain the majority of the pre-drill success case reserves).
2. In order to drill deeper than the current level we will, at the least, have to abandon the existing section of open hole below 4591 metres and sidetrack from inside the existing casing.
3. We estimate it will take approximately 3 weeks to place the well in state where we could execute the sidetrack. However it is likely that specialist equipment (expandable casing) will be required and that consideration, plus allowing time for over pressure to dissipate, may result in moving the rig and drilling the next exploration well before returning to complete operations at Al Jariya.
The forward plan will not be formulated until we have obtained more information about the state of the open hole section and discussed the various options with our partners and the Ministry of Oil and Gas for the Sultanate of Oman, who are closely following our activities.
RAK Petroleum PCL routinely insures itself, and its partners, for serious operational events, such as an uncontrolled surface or sub-surface blowout. As a result, we are in discussions with our insurers, who have visited the well site and reviewed the incident with our operations team.”
Indago CEO David Bremner commented,
“The past eight weeks have been difficult for both Indago and RAK. We are hopeful, however, of getting back on track with the Al Jariya well if current remedial operations prove successful. Clearly, the geological information suggesting that the prospectivity remains substantially undiminished drives us towards seeking to complete the well. Despite the additional well control costs incurred recently, the company remains adequately funded for its budgeted drilling programme. Furthermore the possibility that some, or even all, of the incremental costs resulting from the well control incident may be covered by insurance is very helpful”.
Indago holds an approximate 50% interest in Block 31. The Operator, RAK Petroleum PCL, holds the balance of the interest.