Woodside, on behalf of joint operator CNPC, reported the results of wildcat Aung Siddhi 1 in deepwater Block AD-1, located in the northern Rakhine Basin, on 19 July 2018. The well discovered gas in two primary sandstone objectives. Based on log interpretation, the upper sandstone contains a 60-m gross gas column with 10 m net gas pay. The lower sandstone contains a 45-m gross gas column with 16 m of net gas pay. The gas columns have been confirmed by pressure measurements and gas sampling. The well was drilled to a TD of 4,540 m. Further assessment of the discovery is underway.  Aung Siddhi 1 was drilled using Transoceanâs âDhirubhai Deepwater KG2â D/S at a water depth of 1,391 m, approximately 100 km southwest of the Myanmar coastline. Operations at the well were completed around late June 2018.  The rig reached location at the end of April 2018, and a pilot hole was likely drilled prior to the spud of the actual well. Aung Siddhi 1 was spudded on 2 May 2018. Drilling was underway as of late May 2018 at a depth of approximately 2,900 m. Operations were initially expected to take approximately 40 days.  Aung Siddhi 1 was targeting dry gas in Pliocene turbidite sandstones, with a PTD of 4,600 m. The play is likely analogue to the Thalin 1A discovery in block AD-7. Pre-drill resources at Aung Siddhi 1 have been estimated by the operator to exceed 100 MMboe.  Drillship âDhirubhai Deepwater KG2â was hired by Woodside in November 2017 for a firm five-month drilling contract, starting from May 2018. After the completion of Aung Siddhi 1, the rig was mobilized to Block A-7 to drill wildcat Dhana Hlaing 1. The campaign is expected to continue with appraisal well Shwe Yee Htun in Block A-6 in July 2018. Additional wells could be drilled in block AD-1 and in the adjacent block AD-8 in 2019, depending on results of the initial drilling.  Woodside has agreed to acquire 50% interest from CNPC in blocks AD-1, and AD-8, plus shallow water block AD-6, subject to the fulfillment of certain conditions precedent. As of December 2017, the transaction was pending completion. Upon closing of the deal, Woodside will be the operator for deepwater drilling activities while CNPC will be in charge of liaisons with the government.  The previous activity in block AD-1 was wildcat Aung Pyi Hein 1 in early 2015. The well, located at a water depth of 1,700 m, was drilled to TD around 5,000 m using CNOOCâs âHai Yang Shi You 981â S/S rig. The well was likely targeting Pliocene turbidite sandstones, and it was likely dry.    No wells have been drilled within block AD-8.    Blocks AD-1, AD-6 and AD-8 were officially awarded to CNPC (with 100% interest) in January 2007.    The farm-in to blocks AD-1, AD-6 and AD-8 will increase Woodsideâs position in the northern Rakhine Basin, where the company holds interests in blocks AD-7 (40%, joint operator with POSCO Daewoo), AD-02 (45%, non-operator) and A-4 (45%, non-operator). Woodside also has interest in the central/southern Rakhine Basin, in blocks A-6 (40%, joint operator), A-7 45%, operator) and AD-5 (55%, operator).    Woodside has drilled three wells in block AD-7 between February and October 2017, using the âDhirubhai Deepwater KG2â D/S. The first two wells, Thalin 1B and Thalin 2, appraised the Thalin 1A discovery. The third well, Khayang Swal 1, was targeting a different prospect in the southern part of the block, and it encountered water-wet sandstones. Khayang Swal is situated approximately 30 km west-northwest of Aung Siddhi 1.  Background Information    On 15 January 2007, Chinese state company CNPC signed three PSCs with Myanmar state company MOGE for the offshore blocks AD-1, AD-6 and AD-8. The frontier blocks lie within the Exclusive Economic Zone (EEZ) of Myanmar's waters in the Bay of Bengal, in proximity with POSCO Daewoo's blocks A-1 and A-3 in the Rakhine Basin. Water depths in AD-1 and AD-8 exceed 1,000 m, while AD-6 is located primarily in shelf waters.    Total signature bonus for Blocks AD-1, AD-6 and AD-8 is estimated at USD 10 million.    In November 2007 to January 2008, CNPC acquired 9,401 km 2D seismic survey covering blocks AD-1, AD-6 and AD-8. The data was acquired by BGP using the "Dong Fung Kan Tan 1" M/V. The company previously shot a single test line over Block AD-1 in May 2007. It is understood that Block AD-8 is the most prospective of the three blocks, although the 2D seismic data suggest that structural traps are not developed in Blocks AD-1 and AD-8. Relatively little exploration has taken place in the potentially gas rich deepwater area.    Exploration activities in the blocks were halted in 2009 due to boundary disputes with Bangladesh. However, the issue was resolved with a sentence by ILTOS in March 2012.    CNPC completed 2,100 sq km 3D seismic survey over two blocks, AD-1 and AD-8, on 21 January 2013. The survey was carried out by a 12-streamer geophysical vessel MV Hai Yang Shi You 720 owned by China Oilfield Services Ltd (COSL) in water depths range from 1,000 m to over 2,000 m. The survey commenced in early December 2012.    In block AD-6, CNPC conducted a two-well drilling campaign between March and May 2014. The wells, Aung Zabu 1 and Aung Zabu 2, were drilled at water depth of less than 100 m, likely targeting Pliocene sandstones. It is understood that both wells were dry.
Aung Siddhi 1 (Woodside and CNPC 50/50 JV) in DW Block AD-1, gas disc, in two primary sst. objectives. Based on log interpretation, the upper sst contains a 60m gross gas column with 10m net gas pay. The lower sst. contains a 45m gross gas column with 16m of net gas pay. The gas columns have been confirmed by pressure measurements and gas sampling. Well disappointing not commercial ?.   