25th Oct 2019 09:51
(Alliance News) - Shares in Empyrean Energy PLC and Coro Energy PLC fell on Friday, as both companies announced failed attempts to bring up gas from a well in the Duyung production sharing contract in the West Natuna basin, offshore Indonesia.
Coro, a southeast Asia-focused oil & gas firm, holds a 15% interest in the Duyung, while explorer Empyrean has an 8.5% stake.
Shares in Coro were 15% lower at 2.39 pence on Friday, while Empyrean Energy shares were down 12% at 8.82p in London.
Following the completed drilling of the Tambak-2 well, a full logging suite was acquired, including formation pressure measurements, which confirmed a a 33 feet gross gas pay zone.
However, while preparing for a drill stem test across the Intra-Muda reservoir, an inflatable open hole bridge plug, which is used to isolate the gas-bearing reservoir for testing, had failed.
During operations to recover the plug, the well began flowing natural gas to the surface, leading to the well being immediately shut in for safety reasons. Heavy mud containing barite was used to kill the well, however a large quantity was lost in the reservoir.
Despite the well being conditioned, and drill stem test equipment being put in place, two separate test attempts failed to flow gas to the surface, due to the heavy formation damage caused by the kill mud.
Looking ahead, both companies said the next step in the drilling campaign is to mobilise the rig to the Tambak-1 location, where the well spud is expected in the coming days.
"While the lack of a successful drill stem test at Tambak-2 is disappointing, the main objectives of the well have been met, namely demonstrating a continuous gas-bearing reservoir over a large distance; confirming the same pressure system and gas-water contact as seen at Mako South-1 and in addition, the same quality of reservoir but with better sand development than expected," said Coro Chief Executive James Menzies.
"A valid flow test at Tambak-2 without kill mud being required due to the packer failure would have been desirable given the excellent quality reservoir seen on logs and the 33 feet of net gas pay. The logs confirm an excellent quality reservoir at an approximate 13.5 kilometre step out from Mako-South 1. This achievement alone is expected to have a positive bearing on resources and potential reserves," added Empyrean Energy CEO Tom Kelly.
By Dayo Laniyan; [email protected]
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