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Ouro Preto reviews campaign in Parnaíba against weak results

10/24/18

One of the wells was dry and the other showed non-commercial signs of gas

Ouro Preto has suspended its drilling campaign in the Parnaíba Basin and will evaluate the data obtained from the first two exploration wells drilled in the region by the QG-2 rig of Queiroz Galvão Óleo & Gás. The strategy was taken after the first well resulted dry and the second showed small signs of gas not economically feasible for the installation of a thermal project of the size that had been estimated by the Brazilian oil company.

With the result of the second well, Ouro Preto chose not to drill the third well of the campaign that would be done in the area of ​​the block PN-T-165, located in Piauí, and suspended the contract of charter of the QG-2 rig. The first well was drilled in August in block PN-T-137 and completed in early September, resulting dry. The second was in block PN-T-114, in Maranhão, and started in the first week of October.

Ouro Preto performed a training test in the second well. The result, according to one source, was positive, but was below expected, indicating the presence of a rich but small volume gas.

The well that resulted dry was drilled in a geological structure similar to that researched by Parnaíba Gás Natural. The second drilling was carried out in the municipality of Formosa da Serra Negra and reached the final depth of 2.5 thousand m.

Schedule kept

The change in strategy does not impact the minimum exploratory program agreed with the ANP. Ouro Preto has already complied with the minimum work commitment of the first phase and the drilling campaign marked the anticipation of the minimum exploratory program of the next stage.

Ouro Preto’s development plan for the three areas provided for the installation of a project in the reservoir-to-wire model, with the construction of three thermals of 300 MW each, which, depending on the results achieved in the exploration phase, could enter in operation in 2023. Estimates were that the thermal complex required investments of around US $ 900 million.

The expectation is that the QG-02 will be maintained in the Parnaíba Basin, even with the end of the contract, since there is a prospect that PGN will hire a new rig for its projects in the region.

Source: Brazil Energy

Categories: Uncategorized

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