"Rhino Resources has hit hydrocarbons with its Sagittarius 1-X exploration well in Namibia's Orange basin, although it appears too early to say if the company has a commercial discovery on its hands. This is the first of two exploration wells that Rhino and its partners, Azule Energy and state-owned Namcor, plan to drill in Petroleum Exploration Licence 85. Rhino reported that the probe penetrated Upper Cretaceous targets and intersected “a hydrocarbon reservoir, with no observed water contact”. It said that “intensive wireline logging operations allowed for the collection of hydrocarbon samples and sidewall cores”, with fluid and reservoir properties to be confirmed with laboratory analysis.
The well was spudded on 18 December by the Noble Venturer drillship, reaching its target depth on 6 February. Drilling operations have now been wrapped up and the rig has moved to drill the second exploration well, targeting the Capricornus prospect and a different hydrocarbon play. Commenting on the initial well results, Rhino’s chief executive Travis Smithard said: “The hydrocarbon-bearing reservoir encountered is evidence for the effectiveness of charge, although further assessment will be required by Rhino and [its] partners to evaluate the results of the well.” He said Rhino's attention will now turn to the second target in the programme, which is the Capricornus prospect, a northeast-southwest trending channel system: “The Capricornus-1X well is due to be spud within the next 24 hours and is estimated to take 47 days to drill,” Smithard said."
PCL Price at posting:
1.8¢ Sentiment: Buy Disclosure: Held
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