India's offshore MJ discovery in D6 Block set at 1.4 Tcfe
CALGARY –- Niko Resources has received an independent resources evaluation report for the MJ Discovery in the D6 Block in India from Deloitte, an independent petroleum engineering firm. The report quantifies the discovery at 1.4 Tcfe.
“The discovery and successful appraisal of MJ adds a new and exciting chapter to the D6 Block. Going forward, thecontractor group in the block will be working on plans to develop MJ, which may lead to potentially significant additions to reserves and production levels in the coming years,” said William T. Hornaday, COO at Niko Resources.
Deloitte has evaluated the contingent resources for the MJ Discovery in the D6 Block in India based on available
information, including the drilling, testing and coring results of the MJ‐1 discovery well and the MJ‐A1, MJ‐A2, and MJA3
appraisal wells.
The drilling of MJ‐1, located in the Central (North) fault block, was completed in May 2013 in a water depth of
1,024 m to a total depth of 4,509 m to explore the prospectivity of a Mesozoic Synrift Clastic reservoir
lying over 2,000 m below the already producing reservoirs in the Dhirubhai 1 and 3 gas fields.
Formation evaluation indicates a gross gas and condensate column in the well of about 155 m in the Mesozoic
reservoirs. In a drill stem test, the well flowed 30.6 MMcfd of natural gas and 2,121 bpd of liquids though a
36/64-in. choke, with a flowing bottom hole pressure of 8461 psia, suggesting good flow potential. The well flow
rate during the test was limited by the rig and well test equipment configuration.
The appraisal program, which included three appraisal wells, has provided additional information on
understanding the reservoir. The first appraisal well, MJ‐A1, in what is now designated as the Northern fault
block, had encouraging results.
No hydrocarbon bearing zone was encountered in the second appraisal well, MJ‐A2, in the Eastern segment of MJ discovery area. The third appraisal well, MJ‐A3, in the Central (South) fault block, encountered hydrocarbons at the zone of interest, with the zone thinner than expected.
Deloitte’s best case estimate of gross unrisked contingent resources of 1.4 Tcfe relates to the Central (North), Northern and Central (South) fault blocks that were drilled by the MJ‐1, MJ‐A1, and MJ‐A3 wells, based on an estimated areal extent of approximately 24 km2, approximately twice the areal extent of the analogous MA field that is currently producing.
