Santos Discovers Oil and Gas in Vietnam

Thursday, October 12, 2006
Santos Limited (STO) announced that it has completed testing of the Dua-5X well, offshore Vietnam, after discovering multiple gas and oil reservoirs in the southern fault block of the Dua structure. The company reported that the two reservoir intervals have been tested with the primary reservoir target flowing oil at a stable rate of 5,543 barrels of oil per day (bopd) plus 6.76 million standard cubic feet of gas per day through a 2 inch choke. The oil and gas producer said that a deeper secondary reservoir flowed at a rate of 247 bopd through a 28/64” choke.

Santos reported that work would now commence on the resource assessment and preparation of a reservoir evaluation report, which is the first step in the commercialization process within the PSC terms. The group said that immediately prior to drilling the southern fault block, the Dua-4X and Dua-4X ST1 wells were drilled in the northern fault block of the Dua structure. These wells were step-outs from the 1974 Dua-1X discovery well, which flowed at a rate of 1,500 bopd from the main reservoir.

The company reported that wireline testing of both Dua-4X and Dua-4X ST1 recovered oil samples and pressure data. Following completion of operations on Dua-5X, Santos says the rig will be moved to drill well 12E-CS-1X on the Blackbird prospect also in Block 12E. This well will explore a large tilted fault block up-dip of a previous well that encountered very good oil shows, the company said. Source: Shaw

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