f M3 South Discovery in Central Luconia

In 2003 SSB made a gas-condensate discovery, M3 South, in the prolific Central Luconia Province, 7 km south of the M3 gas field. M3S-1 was drilled in May 2003 on the crest of a steeply dipping carbonate pinnacle build-up. The well encountered 420’ of gas in a GDT situation and the well was abandoned after encountering drilling problems. Initial pressures from the exploration well suggested a much longer hydrocarbon column yet to be proven. An appraisal well was drilled in May 2004 with the successful deployment of pressurised mud cap drilling to handle occurring total losses. The appraisal well, drilled on the steep flank, successfully proved an 1100’ gas column. Pressure measurement suggests that M3 South is situated in a confined pressure setting, with a 400psi aquifer pressure increase from the surrounding fields (M1, Jintan, M3, M4). Gas analysis suggests that M3 South has a unique hydrocarbon source and migration pathway despite being located only several kilometres from producing fields. The steeply dipping flank of the pinnacle made seismic imaging and depth prognosis difficult. Initial PSDM imaging shows significant improvement in the internal imaging of the build-up. The exploration and appraisal campaign were planned using an integrated exploration, well engineering and development team. The benefit of this well coordinated effort was a smooth transition from exploration to production with the Field Development Plan being completed within 6 months after the appraisal campaign.