Falkland Oil and Gas Ltd. (FOGL) focused on exploration in areas to the South and East of the Falkland Islands reported on Tuesday that the well drilled at its Scotia prospect discovered poor quality hydrocarbons.
The 31/12-01 well will be now plugged and abandoned and FOGL next step is to commence a 3D program which will begin once PGS M/V Ramform Sterling arrives in the Falklands.
According to the company release the well was drilled to a depth of 5.555 meters and strong gas shows were identified with interpretation of wireline log data indicating that the target interval 4.719m to 4.769m comprises 50m of hydrocarbon bearing fine grained sandstones and clay-stones.
“The wireline logs indicate that, at this location within Scotia, the sandstones form fairly poor quality reservoir, although some zones have up to 20% porosity. Other thin hydrocarbon bearing sandstones were encountered beneath the main target in the interval 4900m to 5164m. Subsequent evaluation of the main interval using a wireline formation testing tool did not flow hydrocarbons, indicating that the reservoir has low permeability”.
The release adds that rock cuttings and sidewall core samples were obtained from several potential source rock intervals and these will be sent to the laboratory for detailed analysis.
“The results should provide vital information on the quality and maturity of these source rocks and also provide a better understanding of the distribution of oil and gas within this part of the South and East Falklands’ basin”.
Since Scotia covers an area of approximately 350 square kilometers further technical work is required to assess just how representative the current exploration result is, and whether or not better quality reservoir may exist elsewhere within Scotia.
”The well data will be invaluable for calibrating the forthcoming 3D seismic program. The 3D seismic will be used to map sand fairways in the play and, when combined with detailed analysis from the Scotia well, should allow identification of better quality reservoir and differentiation between oil and gas prospects” points out the FOGL release.
FOGL CEO Tim Bushell said that the results of the Scotia well provide further endorsement of the hydrocarbon potential of the South and East Falkland Basin and “have proven the presence of hydrocarbons within the mid Cretaceous Fan Play.
We now plan to fully evaluate the results of the Loligo and Scotia wells. The forward program will focus strongly on three key themes: evaluation of source rock potential and hydrocarbon migration; identification of good quality reservoir within the Tertiary and Cretaceous prospects and plays and the potential commercialization of gas and associated liquids in the South and East Falklands’ basin.
During 2012 we have drilled two encouraging wells, both of which found hydrocarbons and were completed safely and within budget. They reinforce our confidence in the potential of the basin”, concluded CEO Bushell.
FOGL is the operator of the well, holding a 40% interest, whilst Noble Energy Inc. holds a 35% interest and Edison International Spa, holds the remaining 25% interest. Under the terms of the farm-out agreements, FOGL is paying 15% of the costs of this well.