Bulgarian Black Sea gas business expands

Melrose Resources PLC said its Kavarna-1 exploration well 7 km east of Galata gas field on the Black Sea shelf off Bulgaria attempted to blow out and was plugged for safety reasons.

By OGJ editors
HOUSTON, Dec. 5 -- Melrose Resources PLC said its Kavarna-1 exploration well 7 km east of Galata gas field on the Black Sea shelf off Bulgaria attempted to blow out and was plugged for safety reasons.

The Paleocene reservoir, topped at 2,628 ft, appeared well developed and gas bearing. A strong gas influx occurred while conditioning the hole to run open-hole logs. TD is 2,899 ft. Kavarna is estimated to have 24 bcf of recoverable gas.

The Prometeu jack up will redrill Kavarna and then run an extended well test on the GE3-Kaliakra-1 discovery well 15 km east of Galata, estimated to have 47 bcf recoverable.

Kaliakra, to be tied back to the Galata platform, is to go on line in third quarter 2009. Kavarna production is expected in 2010.

Melrose Resources and Bulgaria's state Bulgargaz Holding EAD plan to convert Galata to gas storage with injection starting in third quarter 2009, when Bulgargaz may become an equity partner with as much as 40% interest. Usable capacity of 64 bcf is to be created over 3 years at a cost of $90 million.

Galata's first half 2008 production averaged 28 MMcfd. Ultimate recovery is estimated at 74 bcf.

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