Chad group preparing to start oil production

Caracal Energy Inc., Calgary, said it will initially ship 468,000 bbl of line fill from its wells in southern Chad as it continues to make progress toward producing into the Chad-Cameroon oil pipeline.

Caracal will carry out the shipment on behalf of itself and its partners Glencore and the state company SHT. Initial production to come from the Badila-1 and 2 wells is expected to total as much as 14,000 b/d.

PetroChad Transportation Inc. is the company authorized to ship oil within Chad as defined under Caracal’s production sharing contract.

An inland transportation authorization has been granted, and PCT will ship and measure oil shipments into the export transportation system through custody transfer metering. PCT is constructing blending and shipping facilities required to bring Mangara field onstream. The facilities are to be completed and commissioned in the fourth quarter.

Meanwhile, Caracal spudded the Krim exploratory well on Aug. 4 just southwest of Mangara field and spudded the Badila-4 well on Aug. 8 to appraise the southeast extension of the primary Badila field. A rig will then move to spud the Bitanda exploratory prospect.

The Krim well targets the Cretaceous C and D sands now under development in Mangara field and the Cretaceous E sands that in Mangara-5 have a potential range of 150-230 m of net pay based on petrophysical analysis. The Krim drillsite is less than 10 km from Mangara field facilities.

Badila-4 is on a new structural high mapped on 3D seismic shot over Badila field in the quarter ended June 30. Badila field has possible reserves of 40 million bbl over and above the proved plus probable reserves of 45 million bbl. Much of the possible reserves are associated with the area in and around the Badila-4 well location.

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