Nido Petroleum Ltd declares the successful conclusion of the drilling phase of the Galoc development on 7 January 2008.

Phase 1 of the Galoc development drilling programme was designed to drill two horizontal production wells located to access the maximum producible oil volumes from the southern half of the field. This programme commenced on 7 October 2007 with the spudding of Galoc 3.

The drilling programme included a pilot hole to establish the optimum drilling location for the horizontal production sections. Following the results from the pilot hole, the location of the Galoc 3 horizontal section was moved slightly further north to improve access to oil in place and drainage area.

A total of 11,346 metres was drilled during this drilling programme, which was successfully concluded yesterday when the 5.5 inch predrilled liner was run on the Galoc 3 horizontal production section.Total Production Section of 2,900 metres

Of the 11,346 metres drilled, a total of some 2,900 metres of horizontal production section is now in place across the reservoir (at a depth of approximately 2,190 metres below sea level). The wells each cover more than 40% of the field width

During the drilling of both Galoc 3 and 4, logging while drilling (LWD) logs were acquired. Initial petrophysical interpretation shows reservoir parameters as good as, or better than, anticipated in predevelopment studies.

The drill ship ‘Energy Searcher’ will remain on location for a further 3 weeks to execute the completion program. This involves installation of the completions, the subsea trees and control systems. Once this work is finalised, oil will be flowed to surface to clean out the drilling fluids in preparation for the commencement of production following installation of Galoc’s FPSO, ‘Rubicon Intrepid’. At the end of the completion programme, the rig will then demobilise to Singapore and installation of the mooring and riser system will commence.

Nido’s Deputy Managing Director, Ms Joanne Williams said “We are very pleased with the results of the Galoc drilling programme. To put it in perspective, the total production section that has been achieved is the equivalent of over two and half times the total length of the Sydney Harbour Bridge. This is certainly no mean feat, and I congratulate the operator, the Galoc Production Company, on its efforts and the excellent results.”

Ms Williams went on to say, “Looking forward, the next milestone in the development will be the well testing planned later this month. I look forward to flowing these wells for the first time, and the start of production once the sub-sea infrastructure and the FPSO have been installed and commissioned.”

Tags: Nido Petroleum Limited