India

Located in the prolific Cambay Basin, the Cambay field is currently the most significant component in the Company’s portfolio, covering 161 km2 (approximately 40,000 acres) in Gujarat State, the industrial heartland of India. 

In June 2021 Synergia Energy Ltd executed a binding sale and purchase agreement to acquire GSPC’s 55% participating interest in the Cambay Production Sharing Contract, providing Synergia Energy Ltd with a 100% working interest in the Cambay concession. 

Cambay Overview

The geology in the Cambay Asset is proven to contain hydrocarbons in the Miocene, Oligocene and Eocene zones. Over 70 wells have been drilled on the field with cumulative production of over 104 BCF of gas. 36 wells have penetrated the Eocene Formation, a tight siltstone section with 16 vertical wells testing oil and/or gas to surface. The contract area is covered by a high quality 3D seismic survey acquired by Synergia Energy Ltd in 2007. Synergia Energy Ltd is committed to implementing proven hydraulic fracturing stimulation technology to achieve commercial production from the Eocene Formation which has 206 BCF of P50 gas reserves and an additional 720 BCF and 53 mmbbls of contingent gas and gas condensate resources respectively.

Cambay in Depth

The national oil company, ONGC drilled the first well in 1958 and there have been a significant number of subsequent wells targeting conventional reservoirs in the Cambay Basin. 

A discovery of oil in the nearby Ankleshwar structure in 1960 provided a further boost to the exploration in the Cambay Basin and out of 244 prospects drilled, 97 are oil and gas bearing.

Synergia Energy Ltd became one of the first foreign companies in the basin when it farmed into a PSC with Niko and GSPC in 2005 as an operator with a 45% interest.

 

Between 2006 and 2011, the Company conducted an extensive work programme in the contract area, including 3D seismic, five wells and a study to evaluate the application of shale gas technology to the Eocene reservoirs. Netherland Sewell & Associates, Inc. (NSAI), conducted an independent assessment in 2011 which identified significant Contingent and Prospective Resources.

Cambay-73 was originally drilled in 2008 as a vertical well with a single stage fracture stimulation. During an extended production test in 2012 it had a peak production rate of 1MMscfd and 23.5 bbls of condensate.

In 2014, Synergia Energy completed the Cambay-77H horizontal well, achieving significant progress in delivering the following proof of concept objectives:

  • Efficient drilling operations demonstrating the repeatability of targeting the EP-IV Zone
  • EP-IV Zone reservoir properties lateral consistency, with variability ranges within expectations
  • Completion of 4 fracture treatments, albeit 3 fracture zones were thought to be non-productive
  • Successfully demonstrated “Plug and Perf” completion technique in India
  • First horizontal well in the Cambay Basin with multiple fracture treatments to achieve flowback
  • Flowback data used to calibrate horizontal well model for the first time

The key field results from Cambay-77H flowback and production testing were encouraging. The sustained initial 24 hour rate during flowback was 2.03 MMscfe/d, comprising 55% light oil/condensate with concurrent water production of 1,867bbls/d. Flowing wellhead pressure was 1,261 psig. (Rates are presented in energy equivalents converted at 5,800 scf of gas per bbl of oil because the well was originally designed as a gas and condensate producer).The results indicated recovery of significant volumes of oil and gas could be achieved.  Importantly, Cambay-77H and the model, confirm that the tight Eocene formation in the Cambay Field is amenable to this form of fracture treatment, leading to the conclusion that the EP-IV Zone could be commercially developed with this technology.

Current Status

In April 2022, production from the C-73 and C-77H wells was resumed after a hiatus of several years with production being co-mingled through the C-73 production facility. A gas sales contract was executed in April 2022 to market gas to the local low-pressure grid system.

Following the resumption of production in April 2022 and the increase of the Company’s working interest in the Cambay PSC to 100% pursuant to the GSPC WI acquisition, a review of Synergia Energy’s reserve and resource position was conducted by an independent reserves auditor (RISC). This has resulted in the return of 206 BCF of gas and 8 mmbbls of condensate to the 2P reserves category from Contingent Resources.

In preparation of a full-field development, Synergia Energy undertook a re-fracking operation in July 2022 on the C-77H well to establish a robust fracking methodology for future new wells. The original 4 fracked zones were isolated with a bridge plug and two new zones were individually fracked in the heel of the well. Testing during flowback resulted in gas flow rates of up to 0.5 mmscfd through a 16/64” choke while the well was being cleaned of frac fluid. New wells can be extrapolated to produce c. 4 mmscfd from 15-20 fracked zones, providing robust economics.