Neptune intends to drill a third Dugong panelDeepSea Yantai Rig

Neptune intends to drill a third Dugong panel

If the Tail prospect comes in as expected, a third prospect slightly further to the southwest will also be drilled.

As announced by partner Petrolia Noco yesterday, the Dugong partnership with Neptune as the operator aims to drill a third exploration well on the Dugong discovery (Shamu prospect). This will be 33/6-6S, probably located about 5 km to the southwest of the Dugong discovery well. Drilling of this well will be subject to the success of the Dugong Tail exploration campaign, which is planned for spud later this year. For that reason, the well 33/6-6S well has not been formally approved yet.

Cross-section through the Dugong discovery as presented in the latest Impact Assessment Program published by Neptune this month.

In March, Neptune drilled appraisal well 34/4-16S on Dugong. Even though the well confirmed Dugong as a significant discovery, it did slightly revise down the expected volume range from 40-120 MMboe to 40-108 MMboe.

Drilling of a third well into another panel between the Beta and Gamma faults (see here for a map of the prospects) can be seen as a sign of confidence of the partnership with regards to prospectivity. On the other hand, it may be a key well for which a discovery is required in order to make the development economic. Let’s first see what the Dugong Tail well will result in later this year.