Petronas Carigali has returned to test the Yen Tu 1X well in Viet Nam using Premium Drilling jackup Deep Driller 5.

In September 2004, Petronas began drilling operations on the Yen Tu 1X well. The well was drilled to a depth of 6,339 feet (1,932 m), and encountered hydrocarbon-bearing zones in two Miocene formations and the carbonate basement. The well, which represented the first oil discovery in north Vietnamese waters, was then plugged and abandoned pending further appraisal.

Engaged in oil and gas exploration on offshore blocks in the northern Gulf of Tonkin since 2000, partner American Technologies Incorporated Petroleum’s (ATIP) first major energy resource property acquisition involved a production sharing contract (PSC) for Blocks 102 and 106, covering 5,405 square miles (14,000 sq km) off the coast of Hai Phong, Viet Nam. Since 2000, ATIP and its partners have drilled four exploratory wells in the blocks, Yen Tu, Ha Long, Thai Binh, and Ham Rong, resulting in the discovery of three new oil and gas fields. The area has undergone testing, and ATIP said estimates show the ability to produce at a high commercial rate.

In June 2008, Petronas began testing the Ham Rong 1X well. The Ham Rong prospect is located in Block 106, in the Song Hong Basin. The prospective area is about 47 miles (75 km) south of Hai Phong City, with water depths of between 82 feet (25 m) and 98 feet (30 m). Drilling commenced at Ham Rong 1X in June 2008 to test the hydrocarbon potential of the area’s pre-tertiary fractured and karstified carbonate basement, as well as the Miocene channelized clastics reservoir.

The well was drilled to a final total depth of 12,139 feet (3,700 m) and encountered hydrocarbon-bearing zones in carbonate basement formations. Drill stem testing of the Ham Rong well showed open flow production at a commercial rate. The discovery confirms the existence of oil in the basement of ATIP’s reserves as was anticipated and increases the expectations for future reserves based on the existence of oil in the basement for the prospect. Following the successful testing at Ham Ron 1X, the Yen Tu 1X field was reopened, and is currently being tested, the results of which are expected to become public within the next 60 days.

Petronas operates the block with 50% interest, while ATIP holds 20% interest. The remaining partners are Singapore Petroleum Co. with 20% interest and PetroVietnam holds the remaining 10% interest.

“Our recent exploration activities have conclusively demonstrated the existence of a bare minimum of several hundred millions of barrels of oil in the Gulf of Tonkin,” commented ATI Petroleum CEO Dr. Huu Duc Dinh. “We look forward to moving into production on our existing finds, as well as continuing exploration activities in the South East Asian region, as well as other locations around the globe.” (Energy Current)