Work to start on block in India's Assam-Arakan basin

Feb. 12, 2001
The Assam government approved a petroleum exploration license on Block AA-ON/7 for Canoro Resources Ltd., Calgary.

The Assam government approved a petroleum exploration license on Block AA-ON/7 for Canoro Resources Ltd., Calgary.

The action makes effective the production sharing contract that the Indian government issued in February 1999.

The main oil and gas fairway of the Assam-Arakan basin trends through the 1,934 sq km block. Oil and gas fields there, including historic Dibgoi field, produce mainly from Miocene and Oligocene sandstones, which Canoro said are present on Block AA-ON/7.

Canoro's Canadian consortium has a 65% working interest in and operates the block.

The license enables the company to start operations on the block. The company will get access to the existing 5 wells, two of which tested gas from multiple pay zones. The planned work program involves a reinterpretation of 500 km of existing seismic, 50 km of new seismic, at least one exploration well and possibly re-entries of existing wells.

Canoro noted in 1999 that the foothills area is well known for high-pressured reservoirs and that the existing fields were flowing under pressures ranging from 3,000 to 4,000 psi. It said several large structures had been identified but not drilled.

One of the existing wells flowed gas from a 120 m, continuous pay zone, a 10 m zone, and a 15 m zone. Canoro said the well was drilled on a basement high estimated at 10,000 ha.