Petro Matad Spuds Davsan Tolgoi-4 Well, Proactive Investors
Petro Matad has announced the spudding of its Davsan Tolgoi-4 (DT-4) exploration well, which could be the last well to be drilled in 2010 on the Greater Davsan Tolgoi prospect in Mongolia’s B# # LOCK XX.
The DT-4 well is being drilled vertically to an estimated target depth of approximately 2,020 metres. The well is being drilled by contractor DQE International.
A further announcement will be made once drilling is completed, or as appropriate. The well will test a four-way fold closure which forms part of the previously untested Davsan Tolgoi West 1 prospect. DT-4 is 3.4 kilometres west of DT-1.
Each of the previous wells discovered oil in B# # LOCK XX’s Greater Davsan Tolgoi prospect.
The latest well will test a second prospect, from the 14-lead B# # LOCK XX inventory.
Davsan Tolgoi West has an estimated 21 million barrels of oil and it is separate from the Greater Davsan Tolgoi prospect.
The DT-4 well is intended to test oil migration - which is now proven in Greater Davsan Tolgoi - and it will assess the ‘charge possibilities’ for other leads and prospects to the west and south.
The company highlighted that once DT-4 has been drilled, it will have tested a combined 142.5 million barrels from the pre-drill inventory – which has a pre-drill recoverable resource estimate of 882 million barrels
DT-4 is scheduled to be completed before mid-December, but mid-winter conditions in Mongolia are unpredictable and can be severe. Accordingly the company said it is reluctant to forecast the possibility of commencing what would be a fifth well, DT-5, in calendar year 2010 although the contract with DQE extends to drill a further well using the same rig.