POSCO International announced on 17 February 2020 that wildcat Mahar 1 in Block A-3, offshore Rakhine Basin, has discovered gas, testing approximately 38 MMcf/d. According to local media reports, quoting the company, the well was drilled to a TD of 2,598 m and intersected a gas column of about 18 m. Mahar 1 is located at a water depth of approximately 1,200 m.  The well was spudded in late November 2019 using the "Maersk Viking" D/S. In early December 2019, Mahar 1 was suspended at a drilled depth of approximately 1,960 m while the rig moved to spud a second wildcat, Kissapanadi 1, located 17 km northeast. Kissapanadi 1 may have been completed around late December 2019, with results still under evaluation. Operations at Mahar 1 probably resumed in early January 2020.  Upon completion of Mahar 1, the rig is expected to mobilize 24 km southwest to spud the third and last firm well in the campaign, Yan Aung Myin 1, around March 2020.  The firm drilling programme is scheduled to last until April 2020 for a total duration of approximately 155 days. Maersk reported that the drilling contract is valued approximately USD 33 million, including mobilization fee.  The proven exploration target in the area is the Pliocene turbidite play which is producing biogenic gas from the Shwe Gas Project in adjacent Block A-1.  Mahar 1 and any other discovery from the current exploration campaign are planned to be appraised with two to three additional wells, starting from 2021. The new resources could be developed to extend production plateau of the Shwe Gas Project. The operator is planning to complete Shwe Phase II and Phase III developments between 2022 and 2024, in order to maintain gas sales volume of 500 MMcf/d.  The Mahar structure, located about 20 km southwest of the Mya South production facilities, was initially defined by the operator as "Prospect G". The other structures were provisionally defined as "Mya Channel Fill" (Kissapanadi) and "Prospect A-South" (Yan Aung Myin).  The last exploration activity in the area was a 1,900 sq km 3D seismic survey covering both blocks A-1 and A-3. The survey was likely completed around early March 2015, using PGSâs âRamform Titanâ survey vessel. The survey commenced on 27 January 2015 with the first part of acquisition in Block A-1, followed by Block A-3.  Blocks A-1 and A-3 are operated by POSCO International with 51% interest alongside partners ONGC Videsh (17%), MOGE (15%), Gail (India) (8.5)% and Kogas (8.5%).  Background Information  The 6,779 sq km block was awarded to Daewoo (100%) in February 2004. OVL and Daewoo had applied separately for the block, both seeking a 100% equity. Block A-3 lies adjacent and south of Block A-1, where operator Daewoo made a gas discovery with the sidetrack of its first wildcat Shwe 1, marking the first discovery in Myanmar waters in the Rakhine Basin. The well, drilled from November 2003 to January 2004, flowed 32 MMcfg/d from Lower Pliocene basin floor fan sandstones upon testing.   On 1 November 2004 Daewoo entered into the exploration phase of the block by paying an agreed signature bonus of US$ 2.5 million. Subsequently, during February-April 2005, the company acquired 7,797 line km of 2D seismic over the block at an estimated cost of US$ 2.2 million. Interpretation of the new seismic data has led to the identification of undisclosed number of prospects including Mya (Emerald).   On 3 October 2005, Daewoo finalised a deal with ONGC Videsh Ltd (OVL), Gas Authority of India Ltd (GAIL) and Korea Gas Corporation (Kogas) to acquire stakes of 20%, 10% and 10%, respectively in Block A-3. The two Indian state firms, OVL and GAIL, paid premiums of US$ 2.88 million and US$ 1.44 million, respectively. It followed a Memorandum of Understanding (MOU) signed on 5 October 2004 to finalise the farm-in agreement, where a combined 30% equity was offered to the two Indian firms against their request for 50% equity.  Daewoo drilled four exploration wildcats in the block and discovered the Mya field in 2005. In 2007, two appraisal wells were drilled, Mya 2 and Mya 3, and successfully appraised gas. Three wildcats, Mya West 1, Kyauk-Seine 1 and Thandar 1, were drilled between 2007 and 2008 but did not have favorable results.   In January 2008, the operator completed a 1,006 sq km 3D seismic survey using CGGVeritasâs âCGG Harmatanâ survey vessel.
Mahar 1 nfw. (Posco 51% op , ONGC Videsh 17%, MOGE 15%, Gail 8,5%, Kogas 8,5%), 1st of 3 wells planned in ex-prospect G in block A-3, ops. concluded at TD ca. 1950m, reportedly 18m gas column encountered (presumably in the target Pliocene turbidites), testing approximately 38 MMscf/d. Appraisal drilling would be planned in 2021. WD=1100m.