stuck drill string and high gas readings, page-35

http://www.bworldonline.com/content.php?section=Corporate&title=Consortium-abandons-oil-well-in-Leyte&id=33496

Consortium abandons oil well in Leyte


TACLOBAN CITY -- The consortium drilling a potential oil well that initially showed promise of reserves for liquefied petroleum gas (LPG) in offshore San Isidro, Leyte has abandoned the site after failing to penetrate the area?s sturdy rock formations.

Bert Garcia, engineering manager of consortium member NorAsian Energy Philippines, Inc., yesterday told members of the Leyte provincial board that repeated attempts to penetrate over-pressured rock formation at a depth of 250 meters failed.

?After reviewing the situation, the company decided to quit for this season and prepare for another campaign later,? Mr. Garcia said.

?We encountered a very high pressure even on a shallow depth. The contour is very difficult and there were weak zones at shallow 224 meters depth. There is a high gas and water flow that we cannot control. It might cause an underground blowout,? Mr. Garcia added.

Meanwhile, the firm also reported to the provincial board that it has begun its three-dimensional (3D) survey of the Camotes seabed between Cebu and Leyte.

The said seabed is covered by Service Contract 69. The survey will check whether drilling for oil in the area will be viable.

Mr. Garcia said they will complete the survey of the 150-square-kilometer area in 18 days.

?The 3D seismic survey is designed to elevate prospects previously delineated in a seismic survey [last year],? Mr. Garcia said.

NorAsian, along with Trans-Asia, Alcorn Gold Resources Corp., and PetroEnergy Resources Corp. started drilling the Duhat-1 and Duhat-1A wells off the coast of San Isidro town in May this year. ?When we were drilling the first hole, we were able to detect C3 and C4 gases,? he said.

?In ordinary parlance, these gases compose the LPG. So we are very optimistic of this prospect,? Mr. Garcia added.

He said they were evaluating the results of their initial drilling operations, and preparing the budget for another drilling campaign early next year.

The consortium was awarded Service Contract 51, which encompasses around 332,000 hectares over the northwest Leyte basin and is estimated to produce two million to 18 million barrels of oil. -- Reyan L. Arinto