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Notable comment (we already knew this but good to see it in the press):


“The implications are that if we can produce from those sandstone reservoirs then flow rates from that field would be significantly higher because they’re a typically better quality reservoir."



Eromanga chasing company-maker

Friday, 16 January 2009
Marija Zivkovic

BRAZILIAN explorer Eromanga Hydrocarbons believes Block 330 of the Sergipe-Alagoas Basin in Brazil could be a company-maker after the PACA-2 well was declared an oil discovery.

Eromanga said oil shows were recorded over a total of 232m through three intervals – Morro do Chaves Member, Penedo and Barra de Itiuba Formations – including shows in the deeper Serraria Formation.

“Not only did the zone that we already producing from [Morro do Chaves Member] come back with oil, we also discovered oil in two sandstone reservoirs below that,” chief executive officer Phil Galloway told PetroleumNews.net.

“The implications are that if we can produce from those sandstone reservoirs then flow rates from that field would be significantly higher because they’re a typically better quality reservoir.

“More importantly, the reserve size is significantly bigger and we’re just working through how much bigger. So increasingly block 330 is looking like a company maker for us.”

Galloway also said the company sees a “significant increase” on its pre-drill estimate of 11 million barrels of oil recoverable once reserve calculations are made that include the Panedo and Barra de Itiuba Formations.

PACA-2 was spudded on December and is about 1 kilometre northwest of the successful PACA-1 well.

The PACA-1 has produced 6200 barrels of oil from a cemented and damaged section of the Morro Do Chaves member since production began on October 1, 2008 according to Eromanga.

Galloway told PNN the joint venture with Brazilian company Gavea is planning further development and appraisals wells in the block.

“Importantly with these wells, they are very low cost because you’re onshore, you’re working in a good operating environment and in low-cost country like Brazil, then these wells are typically, our share, about $1 million,” he said.

The PACA-2 well is expected to be completed and put on production sometime in the first quarter of this year.

Eromanga holds a 40% stake in block 330, while Operator Gavea has the remaining 60%.