Singapore-based oil and gas exploration company Interra Resources Ltd said its jointly controlled entity, Goldpetrol Joint Operating Co Inc, has started drilling a new development well in Myanmar’s Chauk oil field.
The well, CHK1177, will be drilled to a depth of 3,300 feet as an infill development well and a southern offset to CHK1171, another well which was completed as an oil producer in August last year at an initial rate of 125 barrels of oil per day, the company said.
Interra said its primary objective is to accelerate production from the oil reservoirs that produce from the wells in this fault block.
Following a fruitful year in drilling in Myanmar last year, CHK1177 became the first well to be drilled as part of the company’s 2014 Myanmar drilling campaign.
In central Myanmar, Interra holds 60 percent of the rights and interests to two of the onshore producing oil fields in Chauk and Yenangyaung under two Improved Petroleum Recovery Contracts (IPRCs).
The two Myanmar concessions extend over a total area of about 1,800 square kilometres and are located along the Ayeyarwaddy river, about 580 kilometres north of Yangon.
Goldpetrol, the operator of Chauk oil field, said it will continue to use three drilling rigs simultaneously in its drilling campaign.
Interra estimated that the results of the drilling and completion should be available in about six weeks.
CHK1177 is being drilled by using Goldpetrol’s ZJ450 rig, thus drilling costs are expected to be relatively low, Interra said. Interra’s share of the cost of drilling will be funded from existing funds on hand, it said.
Interra is an investment holding company engaged in oil and gas production, field development and exploration. It also owns participating interest in oil fields in Indonesia.