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Appraisal well Shwe Yee Htun-2 has been successfully drilled with formation evaluation results indicating a gas column and net pay thickness that substantially exceeds prior expectations, according to MRPL E&P.
The domestic oil and gas firm said this equates to a track record amounting to 100-percent success with five gas discoveries achieved in five wells drilled in Myanmar offshore Block A-6.
The Shwe Yee Htun-2, an appraisal well in offshore block A-6, was tested to be able to produce natural gas, according to an official announcement from the Ministry of Electricity and Energy on September 22.
The well located at about 102 kilometers northwest of Pathein, Ayeyarwady Region, was spudded-in on July 20, 2018, by Dhriubhai Deep Water KG2 (DDKG2) rig.
It reached a total depth of 15,912 feet (4,850 meters) in a water depth of 7,628 feet (2,325 meters). The minimum total gross gas column based on wireline pressure data from both wells is now estimated to be approximately 787 feet (240 meters). Wireline formation evaluation also indicates that Shwe Yee Htun-2 encountered 131 feet (40 meters) of net gas pay.
This discovery showed a gas reservoir which is larger than expected, the company said. MRPL E&P is its Production Sharing Contract (PSC) operator.
As of September 22, drill stem test results indicate Shwe Yee Htun-2 achieving a flow rate of 50 million standard cubic feet per day of gas limited by testing equipment through a 40/64 choke. The well is now being plugged and abandoned as planned.
“This discovery makes a very great potential to go to commerciality. We will have to discuss with JV firms and MOGE. It is extremely promising to go from commercial discovery to development. No new drilling will be made during this year. It is likely in the coming years. To carry on to development stage, negotiations will have to make with both MOGE and JV firms,” U Tint Swe, MPRL E&P’s executive director, told The Myanmar Times.
At this offshore Block A-6, exploring works have been jointly done between the companies – MPRL E&P, a Myanmar company that has 20 percent stake; Woodside Energy, an Australian company that has 40 percent stake; and French Total that has 40 percent stake.
“Our back-to-back ultra-deepwater drilling campaigns in Block A-6 reinforces MPRL E&P’s commitment towards unlocking the energy resources necessary to drive further progress in Myanmar; energy resources that are necessary to meet the rapidly growing energy demand not only in our country but also in the Asia Pacific region,” said CEO U Moe Myint.
Among the offshore oil and gas exploration projects, Yadana, Shwe, Zawtika, and Yetagun are now in progress. From these fields, a further two new potential blocks have been discovered, according to state-owned Myanma Oil and Gas Enterprise.
The ministry will invite international tenders for up to 31 oil and gas exploration fields in early next year.
