Carnarvon Petroleum (ASX:CVN) has drilled its Thailand exploration well NSE-B2ST1 to its target depth of 1,050 metres and is now completing it for production.
The NSE-B2ST1 well started sidetrack drilling operations late last month and production from this well is expected within the next week.
Carnarvon had previously announced fluid losses from the fractured igneous reservoirs being targeted by the well. The company said that these fluid losses are a positive indication of fractures and permeability that are critical to oil production from the igneous reservoirs.
The joint venture is now preparing to flow back drilling fluids and commence testing to determine the potential of the reservoir at this well location. As before, it is planned to preserve flow rates and maximise recovery rates.
Previous successful wells drilled in this area experienced similar losses during drilling, and after flowing back a portion of lost drilling fluids and cleaning up during initial production testing, wells produced oil at rates of 1,340 to 2,650 barrels of oil per day.
An example of this is NSE-B1 which tested at a stabilised flow rate of 2,650 bpd and has an cumulative production to date of approximately 442,000 barrels, after incurring losses up to 240 barrels per hour during drilling.
The rig is now being mobilised to the next location which is NSE-H4, targeting the main Na Sanun East volcanic reservoir. That well is likely to be spudded within the next few days.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.