British explorer Heritage Oil has spudded another wildcat exploration well at the Miran concession in Kurdistan, following news that a previous exploration effort failed to yield commercials flows of gas.
“Drilling of the Miran East-1 exploration well has commenced with an estimated target depth of c.4,000 metres,” said a statement released today by Genel Energy, Heritage’s minority partner in the Miran field.
“This is the first well to be drilled on the highly prospective eastern structure, which has an area of approximately 130 square kilometres.”
The news follows a report from Heritage that the Miran West-3 exploration well showed gas but testing in the Lower Cretaceous formation resulted in no measurable flow of hydrocarbons to surface, due to the lack of an extensive connected fracture network at the well location.
“The Miran 3 well has confirmed the presence of gas in place at this location on the Miran structure,” said Tony Hayward, Genel CEO.
“Integration of the well results and the recently completed 3D seismic survey will provide a better estimate of the potential recoverable gas reserves and assist in development planning.”
The Miran 1 well, which is being drilling on a different structure to the Miran 3 effort, is targeting exploration potential within the Cretaceous and Jurassic reservoir intervals of the eastern structure, contiguous with the hydrocarbon bearing Miran West structure. Drilling is expected to take approximately seven months with multiple intervals to be evaluated and tested as the well is drilled.
“Hayward says the Miran field “has the potential to add significantly to our resources,” as part of Genel’s hunt for a further 700 million barrels of hydrocarbon resources in the Kurdish region of Iraq.
Listed explorers focused on the Kurdish region of Iraq had a torrid time on the London Stock Exchange this week, after reports that ExxonMobil – whose entry raised hopes of a takeover spree in the region – may only have a few days to decide whether to defy Baghdad and remain in Kurdistan, or resile from contracts it has negotiated with the Kurdish Regional Government.
