Porto Energy to reach drilling target at Alcobaça-1 well in Portugal

Porto Energy has said that drilling operations at its Alcobaça-1 (ALC-1) presalt well in Portugal will take another two weeks to reach total depth.

The ALC-1 presalt well is part of the Aljubarrota-3 concession. It first spud at the end of August 2012 and has reached a total measured depth of 2,935m.

Drilling operations are being conducted under a joint venture between Porto Energy and Petróleos de Portugal (Petrogal), whereby Porto is carrying 50% of the total drilling costs.

The ALC-1 well is targeting a mapped four-way closure, approximately 800m high, to the ALJ-2 appraisal well at the company’s Aljubarrota gas discovery.

Porto Energy encountered a thicker than expected salt section, but the well has been now drilled though this salt section and into the closure below the salt.

The joint venture has decided to run a liner and then resume drilling operations to a targeted depth of 3,300m into the primary zone of interest.

Porto Energy president and CEO Joseph Ash said the company is encouraged by its preliminary findings.

"We encountered elevated gas readings when we drilled out of the salt and are now targeting a seismic anomaly we see on our 3D that we interpret as a potential reservoir interval," said Ash.

"We are working closely with Galp to evaluate this section which has the potential to make this a commercial discovery.

Porto Energy in joint venture with Netherlands based Sorgenia International and Austria-based Rohöl-Aufsuchungs Aktiengesellschaft has completed a 23-well stratigraphic drilling programme.

The Porto Lias unconventional oil joint venture drilling programme intended to evaluate the unconventional resource potential of the
Lower Jurassic stratigraphic interval within Porto’s concessions in Portugal.

Porto’s costs are 100% carried by the farm-in partners during the first phase, which originally intended to drill 19 wells. However the plan was expanded to add additional four wells.

The farm-in partners have until 31 December 2012 to start the second phase of the drilling programme.

Mr Ash added, "We are very excited about the preliminary results of the Lower Jurassic work programme. The drilling and logging program has demonstrated the thicknesses and presence of organic rich intervals that are consistent with our pre-drill estimates and whole cores taken within the Lower Jurassic interval are showing higher than expected total organic content.

"We are currently working on a comprehensive geological and geochemical analysis of the cores and initial results are very encouraging."