Gas production increase on horizon in Moldova

Gas and oil drilling are increasing slowly in the eastern European republic of Moldova. A combine of Costilla Energy Inc., Midland, Tex., and Redeco Energy Inc., Calgary, is drilling the first of two wells planned this spring in idle Valeni oil field (see map, OGJ, Feb. 3, 1997, p. 63). The field has three potential pay zones. TD is to be 1,400 ft. Costilla and Redeco hold 50-50 interests in an 8.3 million acre oil and gas concession that covers all of Moldova. The firms completed four gas

June 1, 1998

2 min read

Gas and oil drilling are increasing slowly in the eastern European republic of Moldova.

A combine of Costilla Energy Inc., Midland, Tex., and Redeco Energy Inc., Calgary, is drilling the first of two wells planned this spring in idle Valeni oil field (see map, OGJ, Feb. 3, 1997, p. 63). The field has three potential pay zones. TD is to be 1,400 ft.

Costilla and Redeco hold 50-50 interests in an 8.3 million acre oil and gas concession that covers all of Moldova. The firms completed four gas wells and three dry holes last year in Victorovca gas field. The wells are capable of 500-600 Mcfd/well.

They have been selling about 500 Mcfd of gas from one shallow well since August 1997 at $4 (Canadian)/Mcf to industrial, commercial, and residential customers in the town of Baimaclia.

The firms signed a contract in May with Concern MoldovaGaz JSC, the Moldovan natural gas transmission company and distribution utility. The contract provides for an annually fixed price based on current market less a 5% discount, or about $3 (Canadian) for 1998. The contract will be in force for the duration of the concession but does not require exclusive dedication of reserves, Redeco said.

The companies are evaluating feasibility of residential gas distribution to Leova and Comrat in Leova and Cantemir counties, and design and permitting are under way for a 22 mile pipeline between Cantemir and Comrat.

Existing engineering plans identify 29 well locations in Victorovca field and 10 in Baimaclia field based on 160 acre spacing.

Signing of the gas contract also makes possible the exploration and development of about 23 more "prospects" throughout southern Moldova. The "prospects" are mostly gas wells that are undeveloped discoveries, mostly in shallow Miocene and Jurassic plays. Some have been delineated. Long term flow rates are likely to average 250 Mcfd/well from zones above 2,500 ft.

The firms plan to acquire 100-150 km of 2D seismic data this year to evaluate potential of deeper zones. That will add to an earlier 25 mile 2D survey.

Redeco said its analysis of extensive Soviet seismic data on the Moldovan deep basin shows that earlier Soviet drilling never reached or tested the 30 deep structures indicated.