On 19 October 2017, Woodside reported that wildcat Khayang Swal 1 in Block AD-7, in deepwater Rakhine Basin, was dry. The well was plugged and abandoned in late September 2017 after encountering water-wet sandstones in the Pliocene turbidite target. Final TD for the well was 3,693 m. Khayang Swal 1 was spudded on 28 August 2017 using Transoceanâs âDhirubhai Deepwater KG2â drillship, at a water depth of 1,487 m. After completing the well, the drillship was released by the operator. The high-impact well was likely targeting a previously undrilled channel complex located at the southern edge of the block, some 25 km south of the significant Thalin 1A discovery. The Khayang Swal prospect was estimated to contain resources in the order of multiple Tcf of gas. PTD of the well was 3,815 m. Khayang Swal 1 was the fifth and final firm well drilled by the âDhirubhai Deepwater KG2â which was contracted by Woodside for a long-term exploration drilling campaign in blocks AD-7 and A-6. Woodside previously reported plans to drill at least one additional contingent well in block AD-7 in late 2017, and potentially further wells in 2018. However the 2017 campaign has been completed, and the future drilling plan could depend on the full evaluation of results from the latest campaign. The drilling campaign commenced in late February 2017 with appraisal sidetrack well Thalin 1B in block AD-7, followed by the second appraisal Thalin 2. Thalin 1B successfully tested gas at a rate of 50 MMcf/d. Thalin 2 was completed in early June 2017, encountering gas shows in the targeted reservoir. The rig subsequently moved to block A-6 for a two-well programme (Pyi Thit 1 and Pyi Tharyar 1). The rig mobilized to the Khayang Swal 1 location in late August 2017 after the completion of the two wells in block A-6. Woodside has reported an estimated expenditure of around USD 100 million for exploration activities in Myanmar in 2017. A seafloor sampling campaign over blocks AD-7 and A-6 was conducted between around 22 December 2016 and 15 January 2017, using the âFugro Supporterâ MV. Approximately 990 km of MBES data were likewise acquired during the survey. An Environmental Impact Assessment (EIA) for the campaign in Block AD-7 was ongoing in early September 2016 with project report, scoping report and terms of reference submitted to the government. Drilling scoping report for Block A-6 had not yet been submitted as of October 2016. A positive outcome of the 2017 exploration drilling campaign may result into further drilling of up to four wells over 2018 and 2019, subject to the approval of joint venture partners. The Thalin 1A discovery is estimated to contain 2C resources of 1.5 Tcf of dry gas. Development options under consideration include a tie-back to the existing infrastructure at POSCO Daewooâs Shwe field complex, or a new hub for broader gas aggregation and export. The development concept is expected to be finalized in early 2018, pending approvals from partners and the government. Block AD-7 is jointly operated by POSCO Daewoo with 60% interest (PSC operator) and Woodside Energy Myanmar with 40% (deepwater drilling operator). During the first half of 2016, 3D seismic survey and drilling of the Thalin 1 gas discovery was conducted in block AD-7.
Khayang Swal 1 op. by Posco Daewoo (blk op. 60%), Woodside (well op. 40%) in AD-7 block, P&A, dry after encountering water-wet sandstones in the Pliocene turbidite target.