T HE British company, Enterprise Oil plc has discovered natural gas and oil

condensate as a result of its first test well in Cambodian waters south of

Sihanoukville.

In a statement released on Apr 14 after three months of

drilling, the firm said that "its most successful test produced a maximum flow

rate of 4.7 million cubic feet per day of gas and 180 barrels per day of

condensate."

 

Enterprise's General Manager for Cambodia Barry Rogers said the company was

"very encouraged" by the find but cautioned against expectations that Cambodia

would benefit immediately from the news of Enterprise's discovery of petroleum

reserves offshore.

"The flow rates from this one test are subcommercial,"

said Rogers, "but we've gained knowledge which tells us that the geology in the

region is a working hydrocarbon generative system." Rogers noted that a typical

production well would need to produce about 30 million cubic feet of gas per day

to be potentially commercially viable.

Rogers said that based on the

success of Enterprise's first test well, it was very likely that additional

seismic surveys would be undertaken.

"What we need to understand is the

distribution of the resevoir," said Rogers. He added that oil or gas production

was "a long term process" while citing the example of gas wells in the Gulf of

Thailand where there was a period of ten years between when gas was first

discovered and production actually began.

"It's unrealistic to expect to

see any production for perhaps five years," said Rogers referring to

Enterprise's lease of offshore Blocks I and II which cover about 5,000 square

kms of the Gulf of Thailand each.

Enterprise Oil has a 40 per cent

operating interest in the offshore Cambodia drilling concession.