Interra Resources Limited (the Company or Interra) reported Friday that its jointly controlled entity, Goldpetrol Joint Operating Company Inc. (Goldpetrol), has commenced drilling development well CHK 1194 in the Chauk oil field in Myanmar.
Interra has a 60 percent interest in the Improved Petroleum Recovery Contract of the Chauk field and also owns 60 percent of Goldpetrol which is the operator of the field. CHK 1194 is being drilled using Goldpetrol’s ZJ 450 rig, thus drilling costs are expected to be relatively low. Interra’s share of the cost of drilling is funded from existing funds on hand.
CHK 1194 is to be drilled to a targeted depth of 4,000 feet in the Chauk South fault block as an offset to producing wells CHK 1188 and CHK 1190 which were completed as oil producers in July and September 2014 respectively. In addition to having the primary objective of accelerating production from the reservoirs that produce oil in these two offset wells, the deeper proposed drilling depth will allow CHK 1194 to test deeper reservoirs that produce in other wells in this fault block.
Interra estimates that the results of the drilling and completion should be available in approximately six weeks. The Company will announce the results as soon as they may be ascertained as well as updates reflecting critical or unexpected events during drilling.
Separately, Goldpetrol has completed development well CHK 1192 in the Chauk oil field as an oil producer.
CHK 1192 was drilled to a total depth of 2,900 feet in the Chauk South-Central fault block as a southern offset to producing well CHK 1185 which was completed in May 2014 as an oil producer. The objective is to accelerate oil production from the reservoirs that produce in CHK 1185 and other wells in this fault block. Following production testing, CHK 1192 has been completed through casing perforations over eleven reservoirs totalling 61 feet for 62 barrels of oil per day.
CHK 1192 is the twentieth well drilled in the Chauk oil field and the twenty-seventh in Myanmar in 2014.