Frustrating drilling results for Sterling

20th Sep 2010 07:57

Sterling Energy, the oil and gas company with interests in the Middle East and Africa, has had mixed results with its latest exploration well drill tests in Kurdistan.The Sangaw North number one exploration well has been drilled to an intermediate depth of 2,395 metres and open-hole wire-line log data acquired from 1,450 metres to 2,395 metres.Two prospective zones were identified from the well data.In the first drill stem test an initial recovery of gas was followed by flowing water with minor gas content during the six hour flow period.In the second, following an initial clean up period, the well produced gas at an estimated flow rate of 4m standard cubic feet per day (mmscfd) along with some drilling fluids. However the gas flow decreased and was replaced with water, believed to be formation water, flowing at an estimated rate of 4,300 barrels per day. The well was then shut-in and then re-opened for a second flow period. The well initially flowed water and then produced gas at an estimated flow rate of 1 mmscfd. Again, the gas flow decreased and was replaced with water at an estimated rate of 750 barrels per day."The initial recovery of gas flowing to surface from these zones within the Kometan and Shiranish is encouraging; however the subsequent water flow from these zones is disappointing," said Alastair Beardsall, the company's chairman.The company's forward plan for the well is to drill ahead through the remaining Cretaceous section to evaluate the Qamchuqa reservoir and then to the deeper reservoirs in the Jurassic. The well is expected to reach a depth of 3,660 metres during the fourth quarter of 2010.