The Sun Resources (ASX: SUR), Raisama (ASX: RAI) and Carnarvon Petroleum (ASX: CVN) joint venture at the L20/50 onshore concession in Thailand will complete drilling of the first well in the next two to three days.
This will include the running and evaluating wireline logs.
Tapao Kaew, the first of three potential prospects in the JV, has completed the setting of intermediate casing and is drilling ahead in 8 ½” hole as planned, and has been drilled to 1,600 metres on the way to total depth of 1,715 metres.
Tapao Kaew is located in the Phitsanulok basin, 50 kilometres south of the Sirikit oil field.
The primary formation marker target is interpreted to have been intersected as proposed at a depth of around 800 metres, with no significant reservoir sections intersected.
This resulted in a slower than anticipated drilling through claytstone formation, and also a lack of hydrocarbon shows.
However, reservoir quality fluvial deltaic sands, as interpreted from a nearby well analogue, are still anticipated to be intersected deeper in the section.
The JV potentially will cover three well sites.
The first, Tapao Kaew-1 is part of the Tapao Kaew prospect targeting a gross speculative potential resource of 21 million barrels.
The second well site, Krai Thong, is estimated to have a gross speculative potential resource of 37 million barrels.
The third well site, Chalawan, is estimated to have a gross speculative potential resource of 32 million barrels.
Sun will maintain a significant 42.5% interest in L20/50 following farm-out to Peak.
A major benefit for potential early cash flow is any discovery at L20/50 can be very quickly commercialised with crude oil transported by truck to one of Thailand’s nearby oil refineries for sale.