Tullow Oil’s Cachalote-1 Discovery Not Commercial (Mozambique)

Tullow Oil plc, a leading independent oil & gas, exploration and production group, has announced an update on its exploration wells in Mozambique.

The Cachalote-1 exploration well in Area 2 offshore Mozambique has discovered a gas bearing reservoir in an Upper Cretaceous deepwater channel system.

This well is the first deepwater exploration well drilled in Area 2 and targeted several geological plays associated with the regionally important Ibo High. 38 metres of good quality gas bearing reservoir sandstones were found in an Upper Cretaceous objective on the outboard flank of the Ibo High. However, based on the initial evaluation, it is unlikely to be commercial on a standalone basis. The deeper target did not have any indication of hydrocarbons.

The Cachalote-1 well was then sidetracked to target older sandstone reservoirs which were expected to be developed on the inboard flank of the Ibo High. Thick sandstones were encountered in this section but were not of reservoir quality. Wet gas shows were seen in the well, providing important evidence for a working petroleum system. Following completion of logging operations, the well has been plugged and abandoned.

The Discoverer Americas dynamically positioned drill ship drilled Cachalote-1 to a final depth of 2,475 metres in water depths of 688 metres. The sidetrack was then drilled to a final depth of 3,191 metres below sea level. The drill ship will now move to drill the Buzio-1 wildcat well in the east of the licence, on the outboard flank of the Ibo High.

Tullow has a 25% interest in Areas 2 and 5 in the Romuva Basin, offshore Mozambique. Statoil 40% are the operator while INPEX have a 25% non-operated interest. ENH (Empresa Nacional de Hidrocarbonetos, E.P.) have a 10% carried interest.

Angus McCoss, Exploration Director, Tullow Oil plc commented today,

“Discovering gas outboard on the vast Ibo High through drilling Cachalote-1 is encouraging although this is not a standalone commercial discovery. The potential for discovering oil in this region remains after we encountered wet gas shows in the deeper sidetrack. We will integrate this valuable data into our regional model to improve our chances of unlocking the oil play potential offshore Mozambique.

 

July 23, 2013

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