In a statement JV partner GeoGlobal Resources said, “The well was drilled to a depth of 2,620 metres over a period of 90 days. Due to deteriorating hole, conditions caused by a number of drilling difficulties, the programmed total depth of 3,300 metres could not be reached. [Operator] GSPC elected to run casing to 2,220 metres in order to overcome adverse drilling conditions, but with limited success. An open hole logging program from 2,220 to 2,620 metres was then successfully completed.”

“GSPC elected to test this interval [but], since this prospective interval could not be cased, a 400 metre open hole barefoot test was conducted to confirm the presence of hydrocarbons in this interval. Inability in this 400 meter open hole to isolate the water within this highly fractured reservoir resulted in preferential coning of water with 84% methane and 16% light gases and condensate [and] the result was an unsuccessful production test.

“Based on log analyses, GSPC ran three additional DST tests between 1850 to 2182 metres indicated high formation damage of the potentially productive gas zones but no water. GSPC has elected to abandon the KG-1 well and move to the next location,” it added.

According to GeoGlobal president and CEO Jean P. Roy, “We are disappointed that we were unable to successfully complete a test of our main target reservoir. Our uphole secondary targets were also badly damaged with the heavy mud weight that was used during the lengthy time it took to drill our main target.”

“[However], GSPC and GeoGlobal have learned a lot from our first exploration well which will prove invaluable when we return to drill our next well into this structure. Information gained by the drilling of the KG-1 structure is being incorporated into the 3D seismic data to delineate the hydrocarbon indicators across the KG-1 structure and further extrapolate this data across the entire KG Block,” he added.

GeoGlobal has a 5% net carried interest in the wells drilled on the KG Block.