Videocon Industries Ltd. said Petroleo Brasileiro SA (Petrobras), the operator of the BM-SEAL-11 Concession, has completed formation test in Well (3-SES-176D) informally known as Farfan#1, the first to evaluate the production capacity of the accumulation located in the concession area BM-SEAL-11, Block SEAL-M-426 in ultra deep waters of the Sergipe-Alagoas basin offshore.
The block is 60 percent owned by Petrobras and 40 percent by IBV Brasil, a 50:50 joint venture of BPCL and Videocon Industries Ltd.
Petrobras further confirmed the test evaluated 30 meters of turbidite sandstones formation and confirmed good reservoir characteristics featuring excellent productivity of good quality oil (38 degree API). It further added that the formation test, conducted at a depth of 5,609 meters, was a continuation of the operations carried out in the area as released to the market on August 9 stating that the well found reservoir thickness of 51 m, with good conditions of permeability and porosity.
Petrobras and IBV will proceed with further implementation of the Discovery Evaluation Plan as soon as the same is approved by Brazil's National Petroleum Regulators, Natural Gas Biofuels Agency (ANP).
The Farfan#1 well is located 104 km from the city of Aracaju, around 5 km from the discovery well and at a water depth of 2,476 meters in the appraisal Well drilling.
Pradeep N. Dhoot, Dubai-based Director of Global E&P Business of Videocon Hydrocarbon Holding Ltd., said, "The notable success of the first evaluation of production capacity of the accumulation of oil located in the Concession Area BM-SEAL-11, Block SEAL-M-426, underlies the increasing value of our oil and gas exploration efforts in Brazil."
At the BSE, Videocon Industries shares are currently trading at Rs.178.25, up 2.38 percent from the previous close.
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