Home MMBIZ News PTTEP Hits Gas in Block M3

PTTEP Hits Gas in Block M3

Thailand’s PTT Exploration and Production, the upstream arm of state-owned energy group PTT, has made gas discoveries in four appraisal wells drilled in block M3, offshore Myanmar.

The four appraisal wells are Aung Sinkha-3, Aung Sinkha-4, Aung Sinkha-5 and Aung Sinkha-6.

The Aung Sinkha-3 well flowed gas at approximately 34,500 million cubic feet per day (mcfd) and condensate at 195 barrel per day (bpd), PTTEP said in a statement on Wednesday last week.

The Aung Sinkha-5 well showed gas flow rates of approximately 9,000 mcfd, while the Aung Sinkha-6 well indicated gas flow rates of about 14,000 mcfd and also had associated condensate flow rates of approximately 1,820 bpd, the company said.

The Aung Sinkha-4 well, however, did not flow any gas despite a discovery in the reservoir because the equipment for acidising limestone reservoirs could not be prepared, the company said.

Acidising is a type of stimulation treatment implemented to restore natural permeability of the reservoir and enable hydrocarbon flows.

PTTEP plans to conduct additional drilling of appraisal wells in 2014 for potential development and production from the Aung Sinkha field, the company said.

The company expects to start development of block M3 in 2016 at the earliest, according to a presentation made by the company to analysts earlier this month.

PTTEP holds an 80 percent operating interest in block M3, located in the Gulf of Mottama, with Mitsui Oil Exploration Co holding the remaining 20 percent.

PTTEP has invested in several upstream projects in Myanmar, including the Yadana, Yetagun, Zawtika, M3 and M11, and PSC G and EP 2 projects.

The Yadana and Yetagun projects are in production, Zawtika is in the development stage, and the others are in the exploration stage.

The company expects to begin producing 300,000 mcfd of gas from the Zawtika project located in the Gulf of Martaban by end 2013.

 

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