By OGJ editors
HOUSTON, Feb. 28 -- CDS Oil & Gas Group PLC, London, plans to farm out its Gabino Mendoza and Boqueron blocks in the Chaco basin after its first well failed to meet expectations.
The CDS-GM-05-5001 well, which fulfilled the company's Gabino Mendoza work obligation, went to TD 1,635 m and found liquid hydrocarbons in several zones (OGJ Online, Dec. 27, 2005). However, reservoir quality is too poor for the liquids to flow oil unassisted. Mobilization delays caused a $1.4 million cost overrun.
Several companies have expressed interest in taking a farmout.
The company will focus on shallow oil exploration around the Emilia well on the Boqueron Block. It also believes the Gabino Mendoza Block to be gas prospective at 2,600 m.