First drilling in North Ganal block completed

By Demas Simbolon

Calgary-based oil and gas firm Niko Resources reported that first drilling operation on the Lebah-1 well in North Ganal Block, Makassar Strait, had been completed by its operator Eni oil and gas company.

The North Ganal Block was awarded on November 21st of 2011 to a consortium of five partners, namely North Ganal Energy Ltd - a wholly owned subsidiary of Black Platinum Energy - with interest of 20 percent, Statoil 19 percent, Niko 31 percent, Eni 20 percent and GDF Suez 10 percent.

Niko said in a press statement that the well reached a vertical depth of 11,585 feet while testing all the pre drill geologic objectives. The well has been plugged and abandoned and the Discoverer Seven Seas is moving off location. This was the first of two wells to be drilled on the 2,437 km square North Ganal Block.

The Lebah-1 well targeted a series of upper Miocene-Pliocene deep water channel Sands analogous to those found in nearby discoveries by Eni and partners.

Although Lebah drilled over 800 feet? of reservoir quality sands distributed over a number of intervals only one of the sands was hydrocarbon bearing. The Upper Miocene 11,500 feet? sand had 12 feet? of gas at the top of a 41? gross sand interval.

Additional interpretation of the newly reprocessed seismic data by Eni, integrating the results from Lebah-1, will allow the Joint Venture Partners to evaluate the resource potential of the 11,500? and other sands.

Additional possible drilling locations have already been identified within the depositional trend. As well, the significant resource potential of deeper Middle Miocene sands will be the subject of future drilling.

Editing by Benget Besalicto Tnb.