By OGJ editors
HOUSTON, Oct. 17 -- CDS Oil & Gas Group PLC, London, is preparing to spud the first of what could be a series of exploration wells in nonproducing Paraguay.
The company let a contract to Nabors International to move Rig 426 from Bolivia to drill a well to 3,200 m on the 98,800-acre Gabino Mendoza Block in northwestern Paraguay. The well, to spud this month, is in the Chaco basin, which produces oil and gas in Bolivia.
The drillsite is 200 m from Independencia-1, which CDS tested in March 2004 at 960 Mcfd of gas from 4 m of Carboniferous sandstone at 588 m. Gas is 94% methane with no sulfur.
CDS Oil & Gas has imported casing for as many as five wells.
Independencia-1 is a reentry of the Pure Oil Mendoza-1R, which briefly drillstem tested at a rate of 2.6 MMcfd of gas from 2,600 m in 1959. The well also had oil shows at 721-1,800 m and a sequence of Devonian silts and shales at 1,676-3,234 m MD, the company said.
CDS Oil & Gas holds 100% interests in the 5.7-million-acre Boqueron Block and the 1.2- million-acre PG&E Block. Of the 26 wells drilled on the three blocks, 22 had hydrocarbon shows.