Thursday, 10 June 2010

2nd Palawan oil well tops forecast at 18,000 barrels

Alena Mae S. Flores
Manila Standard
http://www.manilastandardtoday.com/insideNews.htm?f=2010/june/9/news1.isx&d=2010/june/9

THE Tindalo-1 oil well in northwest Palawan is flowing at the rate of 18,689 barrels a day, surpassing pre-test expectations, the Australian firm Nido Petroleum said Tuesday.

The company was expecting the oil field to produce 7,000 to 15,000 barrels a day, but starting June 6 the field had been producing 15,000 barrels and was now gushing at varying rates, it said.

“The results from the stimulation and drill-stem testing program have exceeded my expectations,” Nido deputy managing director Joanne Williams said.

Nido, operator of service contract 54A covering the project, started the drill-stem testing on June 5. It has a 42.4-percent stake in the project, and its joint-venture partners are Kairiki Energy (30.1 percent), Trafigura Ventures III B.V. (15.1 percent), and TG World Energy Corp. (12.5 percent).

The Tindalo well flowed for 27 hours during testing, and it achieved a maximum flow rate of 18,689 barrels unassisted, the company said.

The oil produced during testing was processed on top of the drill rig and stored for later sale aboard the Tove Knutsen, rather than being flared or burned as was the usual practice, Nido said.

Several fluid and crude oil assay samples were taken from the well, which will be analyzed over the coming weeks.

“Preliminary analysis of oil quality indicates 27-degree API with no wax,” the company said.

“Extensive sampling of the oil is being undertaken for reservoir fluid characterization and crude marketing purposes.”

Nido discovered the oil field in October 2008, and the joint-venture partners then decided to proceed with well development in December 2009.

The company had previously estimated Tindalo’s recoverable volume at 1.5 million to 9.1 million barrels, and an average of 5.1 million barrels.

Nido president Emmanuel De Dios said the company would be using the money earned from the well to drill in Palawan’s other areas over the next 18 to 24 months. The company said it had identified over 20 prospects in shallow waters with an estimated potential for 200 million barrels.

“Tindalo is only one of several discoveries in Nido’s shallow water acreage, which have the potential to become significant cash generators,” De Dios said.

The Tindalo field is the second Filipino oil field to start production since the early 1990s—the other being the Galoc oil field that started producing in October 2008.

It was not immediately clear if Nido’s shares are now being traded in Australia. The company asked for a trading halt starting Friday last week until it had made an announcement on its well-testing.

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