Portugal: Porto, Galp Disappointed Results at Alcobaça-1 Presalt Exploration Well

Porto Energy Corp., announced disappointing results from the drilling of the Alcobaça-1 ("ALC-1") Presalt exploration well in the Aljubarrota-3 concession, onshore Portugal.

The ALC-1 well, spud at the end of August 2012, was Porto's first Presalt well and reached a total measured depth of 3,240 meters. The well encountered a 300 metre gas column trapped below salt, but did not find sufficient reservoir sands to be a commercial success. The Company has begun efforts to plug and abandon the well and release the rig. 

The well was drilled under a joint venture with Galp who carried Porto on 50% of the total costs associated with the drilling of this well, estimated to be approximately $10.7 million.

"The well penetrated approximately 50 net meters of sand and saw good reservoir properties in several intervals, but much of the sands were near the base of the trapped gas column and as such were deemed non commercial," said Joseph Ash, President and CEO of Porto Energy. "Overall we drilled nearly 1,000 feet of hydrocarbon column.  The salt sealing mechanism worked.  The pre-salt charge and migration was confirmed as the sands were found to be gas bearing.  Reservoir containment was also demonstrated since there was no breach.  Unfortunately, we discovered a much lower net to gross ratio on the sands in this discovery.  Regardless, this demonstrated to the partnership that the play can work in the basin."

Porto and Galp are initiating technical discussions on the best path forward.

Source: Porto Energy