Vermilion to drill wildcat off southwest France

Jan. 10, 2007
Vermilion REP, a subsidiary of Calgary-based Vermilion Resources Ltd. and Vermilion Exploration SAS, is planning to drill an exploration well on the Aquitaine maritime permit which covers a 1,211 sq km area in the northern part of offshore Aquitaine basin in southwest France.

Doris Leblond
OGJ Correspondent

PARIS, Jan. 10 -- Vermilion REP, a subsidiary of Calgary-based Vermilion Resources Ltd. and Vermilion Exploration SAS, is planning to drill an exploration well on the Aquitaine maritime permit which covers a 1,211 sq km area in the northern part of offshore Aquitaine basin in southwest France.

Following 2D and 3D seismic surveys carried out in September and October 2005 at a cost of $6 million, with final processing completed in February 2006, Vermilion is planning an exploratory well in this year's third quarter at a cost of $25-30 million.

Six large structural leads have been mapped at the primary Lower Cretaceous reservoir target. In addition, a large structural lead has been identified at the Upper Cretaceous-Lower Tertiary level, and a location for the hole is being selected, said Paul Beique, director of investor relations for parent firm Vermilion Energy Trust.

"A well depth of 3,000 m would be sufficient to penetrate the entire Lower Cretaceous sequence," Beique said, adding that it would take 30-40 days to drill. "The big question," he said, "is the quality of the reservoir, whether the rock is porous and permeable."

Although it is an extension of the onshore oil-prone Parentis subbasin, and its distance to shore varies at 20-80 km in 50-200 m of water, the 22 exploration wells drilled over time by Esso, Shell, or Elf have never so far yielded commercial results. Esso, which never found a partner to share the development costs, drilled the most recent well, Pegasus, in 1998.

"The old wells were drilled on poor quality data," said Beique, who added that he is confident the quality of the 3D seismics run over 775 sq km "is sufficiently good to provide correlation from well control to the prospect area."

The current exploration term of the Aquitaine Maritime permit ends in December. It can be renewed to 2012, but only on 75% of the acreage.