) joint venture partner KrisEnergy revealed that the Italian oil
major has stopped work at a 15.2 meter hydrocarbon column in Ca
Ngu-1 exploration well in Block 120, offshore Vietnam.
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Since the well did not come across any significant volume of
hydrocarbons, the well has been plugged and abandoned. The well
encountered oil and gas in the primary objective that confirmed
the presence of petroleum system in the area.
Per KrisEnergy, wireline log data established the existence of
gas in the Pliocene sandstone reservoirs and a 15.2 meter
hydrocarbon column in the Miocene carbonate reservoir. The data
provided by the drilling of well Ca Ngu-1 is likely to be
beneficial for future exploration within Block 120, which is
believed to hold multiple exploration plays.
Drilling operations were suspended due to a string of strong
typhoons which passed through the region requiring the evacuation
of crew members from the semisubmersible rig Songa Mercur on
The Ca Ngu-1 well, which started drilling on Oct 10, reached a
total depth of 4,232 feet (1,290 meters). The Ca Ngu-1 well is
located in a water depth of around 885 feet (270 meters). Block
120 spans 3,130 square miles covering the Quang Ngai Graben and
the Tri Ton Horst where the water depth ranges from 164 feet (50
meters) to 3,609 feet (1,100 meters).
Eni, the operator of Block 120, holds a working interest of 50%.
Other partners KrisEnergy and Neon Energy (Song Hong) Pty Ltd
hold 25% each.
Eni carries a Zacks Rank #4 (Sell). Some better-ranked stocks in
the oil and gas sector include
Harvest Natural Resources Inc.
Blueknight Energy Partners, L.P
). All these stocks hold a Zacks Rank #1 (Strong Buy).