Panoro Energy ASA , an independent oil and gas company, announces that the drilling of the Sabiá well, offshore Brazil, is completed.
Panoro Energy ASA is currently evaluating the drilling results of well 1-VBEP-1-SPS which targeted the Sabiá prospect, located in Concession BM-S-72 (Block S-M-1100) in the Santos basin. Three main reservoirs were the targets of this well; the Intra Juréia, the Itajaí-Açú wedge turbidites and the Ilha Bela 2 turbidites. The well is placed about 250 km south the town of Santos, São Paulo State, Brazil, in water depths of 195 meters. The well has reached a final depth of 4200 meters where a decision was made to stop drilling.
Based on the current data, it is expected that discovered volumes are at the low end of the pre-drill range as envisaged by Panoro. Early indications are that the commerciality of the discovery cannot firmly be stated at this moment, but the well showed that an active petroleum system is operating in the area which can have a positive impact in the geological chance of success for the next two prospects to be drilled in the area, namely the Canário and Jandáia prospects. However, only after integration of all data will a more accurate assessment of the discovered volumes be possible.
The GSF Arctic I rig will now be moved to drill the second prospect in the exploration campaign, the Canário Prospect, which is expected to be spudded within two weeks.
Panoro Energy holds a 15 % ownership in this block and its costs for the Sabiá well have been fully carried. The partners are Vanco Brasil Exploração e Produção de Petróleo e Gas Natural Ltda (Operator 70%) and Brasoil Round 9 Exploração Petrolífera Ltda (15%).
Press Release, September 14, 2012