PTTEP's Block M7 well off Myanmar noncommercial

PTT Exploration & Production PLC (PTTEP)'s initial foray onto Block M7 in the Gulf of Martaban, Myanmar, was unsuccessful, raising doubts about the anticipated gas potential.

Jan. 3, 2009

By an OGJ correspondent
BANGKOK, Jan. 2 -- PTT Exploration & Production PLC (PTTEP)'s initial foray onto Block M7 in the Gulf of Martaban, Myanmar, was unsuccessful, raising doubts about the anticipated gas potential.

Janaka-1 was the first exploration well drilled by the Thai-state-controlled group on the 13,302 sq km acreage by the West Ariel jack up.

Spudded on Aug. 8, the well was drilled to 3,581 m TD. Although it encountered three petroleum bearing formations with a total thickness of 18 m and discovered gas, it was declared noncommercial.

PTTEP has written off the well's cost, slightly over $28 million, in fourth-quarter 2008.

However, PTTEP Chief Executive Anon Sirisaengtaksin said PTTEP will conduct additional studies and will re-evaluate the petroleum potential with a view to planning further exploration on the block in the near future.

PTTEP, which operates Block M7 with a 100% interest, completed 500 line-km of 2D seismic campaign earlier this year and originally planned to drill only two exploration wells there.