re: hdr - why it's called Chingetti 4-3-
Fusion Oil & Gas (FOG) announcement
RNS Number:9590A
Fusion Oil & Gas PLC
10 September 2002
Fusion Oil & Gas plc
("Fusion" or "the Company")
Routine Drilling Progress Report
Fusion announces that the 'Deepwater Discovery' drillship is on location at the
Banda exploration prospect and is anticipated to commence drilling shortly.
Following guidelines from the Mauritanian authorities, this exploration well
will be designated Chinguetti-4-3.
The Banda exploration prospect is an independent geological feature, situated in
a water depth of 300 metres, and located approximately 21 kilometres to the east
of the Chinguetti accumulation. The Banda exploration prospect is within the
same reservoir sand system as the Chinguetti accumulation and will test a
different geological trapping configuration. Fusion estimates that the Banda
exploration prospect could hold a potential recoverable resource in the range
250 to 300 million barrels. The close proximity of the Banda exploration
prospect to the Chinguetti accumulation could, in the event of joint success,
result in a combined development, with potential commercial benefits. The Banda
exploration prospect lies on the border between PSC B and PSC A, with the
Chinguetti-4-3 well located in PSC A.
The Chinguetti-4-2 well has been temporarily suspended following mechanical
failure of the testing equipment during preparation for a second production
test. In the interests of drilling efficiency, the Joint Venture has decided to
temporarily suspend the Chinguetti-4-2 well whilst replacement equipment is
obtained and commence drilling of the Banda exploration prospect.
Following completion of the Chinguetti-4-3 (Banda) well, it is anticipated that
the drillship will return to the Chinguetti-4-2 well to conduct a second
production test prior to drilling a southerly appraisal well on the Chinguetti
accumulation (Chinguetti-4-4). The forward programme will be confirmed prior to
completion of the Chinguetti-4-3 exploration well.
Fusion has a 6% interest in PSC B and a 3% interest in PSC A. Under terms of an
agreement with the original Licencees, Fusion will contribute 6% of the cost of
drilling this first well in PSC A.
Alan Stein, Managing Director of Fusion, commented:
"We are encouraged by the information collected from the Chinguetti-4-2 well,
which has confirmed the presence of oil in the upthrown fault block in the
Chinguetti structure.
The primary reservoir zone encountered in Chinguetti-4-2 consists of a variety
of oil bearing reservoir sand intervals. Although sand influx prevented a
representative production flow being achieved during the test of the first
interval within this zone, this is commonly indicative of excellent productive
potential. It is expected that significantly higher flow rates could be achieved
from appropriately designed production wells.
The Chinguetti-4-3 well is a test of a new exploration play concept that could
have implications for the development of the Greater Chinguetti Area.
Accordingly we look forward to the results of this well with considerable
interest".
10th September 2002
For further details please refer to the company's web page www.fusionoil.com.au
or contact:
Fusion Oil & Gas plc
Alan Stein, Managing Director Tel: +61 89 226 3011
Fax: +61 89 226 3022
e-mail: [email protected]
College Hill Associates
James Henderson Tel: 020 7457 2020
Fax: 020 7248 3295
Peter Rigby e-mail: [email protected]
This information is provided by RNS
The company news service from the London Stock Exchange
HDR
hardman resources limited
