Tap Oil (ASX:TAP) has reported that the Mawar-1 onshore exploration well in Block M, Brunei Darussalam, has spudded and is expected to take approximately 28 days to drill and evaluate on a trouble free basis.
Block M covers an area of approximately 3,011 km2 in the Baram Delta Basin and is the largest onshore permit in Brunei. Mawar-1 is the first well to be drilled in an initial two well exploration program in Block M, where Tap is the operator of the block.
It is the first well to be drilled in Block M since 1988 and is the first well drilled by the Block M Joint Venture for the Brunei National Petroleum Corporation (PetroleumBRUNEI).
Peter Stickland, chief executive officer, said the company has been looking forward to getting the bit in the ground and drilling the first well.
“Mawar-1 has significant oil potential at low-to-moderate risk due to the offset well control and interpretation on modern 3D seismic data,” Stickland said.
“Brunei’s established infrastructure means Tap will be able to quickly monetise any commercial discovery,” he said.
The Mawar-1 prospect was identified as being prospective for oil during interpretation work on the 3D seismic data acquired by the joint venture in 2009.
The prospect is a fault compartment identified within the Belait Anticline and pre-drill mapping indicates a prospect size up to nine million barrels of oil.
The Mawar-1 well is considered to be low-to moderate risk given the drilling history within the Belait trend and is 30kms south of the giant Seria oil field, which includes an oil refinery and terminal and the Brunei liquefied natural gas (LNG) facility.
In the case of a discovery, the well is likely to be suspended pending testing by another rig designed for that purpose.
Block M is regarded as under-explored having not seen a concerted exploration effort using modern exploration methods for over 20 years.
Participants in Block M are: Tap Energy (Borneo) Pty Ltd 39% (Operator), Kulczyk Oil Ventures Inc. 36%, China Sino Oil Co. Ltd 21% and Jana Corporation Sdn Bhd 4%.
The Joint Venture is planning to drill at least two wells on the prospective Belait anticlinal trend in 2010.