Ophir Energy Plc G4/50 exploration drilling programme (9230C)
21 Oktober 2015 - 8:39AM
UK Regulatory
TIDMOPHR
RNS Number : 9230C
Ophir Energy Plc
21 October 2015
21 October 2015
Ophir Energy plc
("Ophir")
Commencement of G4/50 exploration drilling programme
Ophir announces that it has commenced its two well exploration
drilling programme in Block G4/50, in the western Gulf of Thailand
with the spud of G4/50-10 exploration well on the Soy Siam
prospect.
The G4/50 Block partly surrounds Ophir's producing Bualuang oil
field and spans a series of Tertiary aged sub-basins in the western
Gulf of Thailand. The two well programme will test whether there is
a working hydrocarbon system in one of these, the presently
undrilled South Western Sub-Basin. The main play risk is considered
to be charge, specifically source distribution and maturity.
The Soy Siam Prospect comprises a single fault block which has
potentially been charged from both the Bualuang and South Western
Sub-Basins. The G4/50-10 well is targeting Miocene sandstones that
are the age equivalent of the producing reservoirs in the Bualuang
oil field, located 15 km to the north. The Soy Siam Prospect has 25
MMbo of mean prospective resource and a 21% chance of success.
On completion of the G4/50-10 well, the rig will move to drill
the Parichat South West (SW) prospect. The Parichat complex is a
cluster of four fault blocks located 30 km south of the Bualuang
field that have potentially been charged from deeper in the South
Western Sub-Basin. Each fault block has multiple stacked, Miocene
and Oligocene reservoir targets. The south west fault block is the
initial target with a mean prospective resource of 25 MMbo and a
32% chance of success. If successful, the Parichat South East fault
block would form an immediate follow on location.
The Emerald Vantage jack up rig will be used for the G4/50
drilling programme. The estimated cost of the two well programme is
c. $18 million and it is expected to take approximately 50 days to
complete.
There is considerable additional potential in the event of
success in either of these wells. Ophir has mapped six further
prospects in the South Western Sub-Basin with total mean unrisked
resources of 155 MMbo. These prospects and leads are highly
interdependent in terms of risk and, in the event of success, there
will be substantial de-risking across this play. Ophir has
Environmental Impact Assessment approvals in place for a total of
18 drilling locations in the Southern Western Sub-Basin which
provides considerable running room in the play. The reduction of
both drilling rates and shallow water costs have offset the
reduction in oil prices, such that the commercial threshold for a
MOPU development in the Gulf of Thailand is 10-15 MMbo at current
oil prices.
Commenting on the drilling programme, Nick Cooper, Chief
Executive Officer of Ophir, said:
"The Soy Siam and Parichat SW wells represent low cost
exploration wells that, at current oil prices, can still deliver
attractive risked returns in the event of success. Moreover, as the
first well penetrations in the South Western Sub-Basin, these wells
have the potential to unlock a considerable drilling inventory and
substantial prize. Any discovery could be swiftly developed and
potentially repeated. Over the past decade, other operators have
created substantial value pursuing similar strategies throughout
the Gulf of Thailand. If Ophir encounters success in these first
two wells, we would be well placed to replicate this."
Ends
For Further Enquiries please contact:
Ophir Energy plc +44 (0)20 7811 2400
Nick Cooper, Chief Executive Officer
Bill Higgs, Chief Operating Officer
Geoff Callow, Head of Investor Relations
Brunswick Group +44 (0)20 7404 5959
Patrick Handley
Carolina Desmeules
This information is provided by RNS
The company news service from the London Stock Exchange
END
STRPKDDKABDKOKB
(END) Dow Jones Newswires
October 21, 2015 02:39 ET (06:39 GMT)
Ophir Energy (LSE:OPHR)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Ophir Energy (LSE:OPHR)
Historical Stock Chart
Von Jul 2023 bis Jul 2024