Sagres abandons Apoteri exploration well
Published:Wednesday | May 4, 2011 | 12:00 AM
Oil and gas explorer Sagres Energy Inc said early indicators suggest that its Apoteri K-2 well in Guyana holds little promise for commercial extraction of fossils and would be abandoned.
The Canadian company drilled to a depth of 9,812 feet at the K-2 exploration well on the Takutu Block, which it hit April 20.
At a measured depth of 8,300 to 9,376 feet, Sagres said it had only encountered light oil and gas shows, and that the reservoir quality was poor based on drilling indicators and tests.
"Three drill stem tests were performed in this interval: one was a mechanical failure and the other two were mechanically successful but failed to recover any reservoir fluids, indicating very tight reservoir," the company said in a statement.
At 9,764 through to 9,812 feet, the company said its exploration indicated "a significantly fractured reservoir zone" within the Apoteri Formation.
A drill stem test across the fracture on April 22 suggested the presence of better quality resources but, said Sagres, produced 1,500 barrels of formation water per day with no trace of oil.
"Although excellent reservoir quality was encountered in this interval of the Apoteri Formation, the fractured reservoir appears to have been penetrated below the oil - water contact, defined by the interval of oil and gas, shows higher up in the section between 8,300 and 9,376 ft measured depth," Sagres said.
The exploration contract is held by a consortium: Canacol Energy Limited has a 65 per cent "working interest", and Groundstar Resources Limited, the operator of the petroleum prospecting licence, holding 10 per cent.
Sagres Energy acquired 25 per cent working interest in the prospecting licence from Canacol by paying for 30 per cent of the cost to drill the K-2 exploration well.
Sagres said the consortium was evaluating the next exploration drilling location on the block, having decided to abandon the Apoteri K-2.
Sagres is also exploring for petroleum resources in Colombia and Jamaica. In the case of Jamaica, the company is seeking joint venture partners for three blocks it has a licence to explore.