Mongolian E&P Petro Matad delivered an operational update on its Heron-1 oil discovery well, plans for the Heron-2 well and the Gobi Bear-1 exploration well.
Work on the Heron-1 discovery well has been completed with the down-hole pump installed and ready for production. The well was found to be in good condition and the perforated zone from 2,834 m to 2,846 m in the Lower Tsagaanstav Formation from which the well flowed at 821 barrels of oil per day (bopd) on test was isolated and hydraulically stimulated.
Pressure responses observed during the stimulation were consistent with a successful operation and oil was observed during the subsequent recovery of the stimulation fluid. All completion equipment has been demobilized and the well site prepared for the installation of production facilities.
Facilities have been purchased and are ready to be installed. PetroChina, as operator, has provided spare oil storage tanks at nominal cost, which are now being integrity tested and which will complete the production site configuration.
The contract for the drilling of two wells in the Block XX Exploitation License area has been agreed with PetroChina’s drilling subsidiary, DQE Drilling, and approved by MRPAM. Mobilization of the rig to drill the Heron-2 well is planned to begin before the end of August, with well spud expected by mid-September.
Heron-2 will be drilled to a total depth of approximately 2,900 m and the anticipated timing will allow for a full evaluation of the well results, flow testing and completion within the current operational window.
A smaller rig for the Gobi Bear-1 exploration well is expected to mobilize to site in the first half of September and to spud before month’s end. The planned total depth of 1,800 m should be reached in good time to allow for logging and, if merited, testing before the normal winter operational shutdown in late November.