Continental Focus, International Reach

TG World Updates Niger Program

Thursday, November 29, 2007

In its Q3 report, TG World gave an overview of the 2007/2008 program for its Tenere Block in Niger. Following the drilling of the Saha-1 in October 2006 and the Fachi West-1 in April 2007, both abandoned, the company and its partner CNPC embarked on a hunt for the location of the next well. CNPC spent the past six months integrating the results of the first two Ténéré exploration wells and 4,155.5 km of proprietary, and 7,969 km of reprocessed vintage 2D seismic data.

 

A preliminary selection has been made and the next well is expected to be drilled approximately 25 km north-west of the Fachi-1 well, drilled in the 1970s, along the continuation of the Fachi High Horst block. The prospect is designed to test the Cretaceous-age Donga sandstone as its primary reservoir target. This is a new play resulting from technical analysis of the Saha-1 well, which tested oil in non-commercial quantities from a reservoir in the shallower Yogou formation. Additional infill 2D seismic data coverage, which was not completely acquired during the summer, may be finished before finalizing the third well location, TG World reported.

 

Seismic operations have been delayed from the planned Q3 2007 start-up. The delay is due to security concerns raised by incidents that took place earlier this year in the Agadez region. The operator is working with the Niger authorities to put in place increased security for both the seismic and well operations. At this time it is uncertain when seismic operations may commence; start-up could be in Q4 2007, or may be delayed further.

 

TG World said that if the next well is deemed “technically robust” without infill seismic, it will take about two months to construct the well site and move the rig from the previous drilling site. If the third well requires infill seismic data, a further two months is needed before spudding. Commencement of well operations is subject to the same security issues as the seismic program.


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