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Exploration & Development — Quick Takes
Repsol sees 927 million boe in Vaca Muerta so far
Repsol YPF said it has identified the existence of a recoverable 927 million bbl of oil equivalent, 80% oil, in Late Jurassic-Early Cretaceous Vaca Muerta shale on about 3.5% of its 12,000 sq km holdings in the Neuquen basin in Argentina.
The company derived its estimates from the results of 15 vertical wells completed in the unconventional formation on 428 sq km on the Loma La Lata Norte block. It said one other well is already producing from Vaca Muerta in a separate 502 sq km area in the basin.
Repsol termed the 927 million boe the company's largest oil discovery and said the volume is similar to the existing reserves of Argentina firm YPF, in which Repsol holds a 58% interest.
Repsol noted that the Vaca Muerta formation underlies 30,000 sq km in the Neuquen basin and that Wood Mackenzie consultants has identified the formation as "one of the world's best shale plays."
Wood Mackenzie's evaluation, completed earlier in 2011, was based on numerous factors including development of the hydrocarbons market, infrastructure, regulation, availability of water, fiscal terms, quality, comparative volume, potential for enhanced recovery, and organization of the supply chain, Repsol said.
Repsol said the 15 vertical wells at Loma La Lata Norte had initial flow rates of a combined 5,000 b/d of oil equivalent including 40-45° gravity oil.
Meanwhile, the single well in the 502 sq km area is producing 400 b/d of oil equivalent with 35° gravity oil. The 502 sq km area "has significant potential for large volumes to be developed in the future once the appropriate studies and preliminary work to determine resources is completed," the company said.
EPA announces final hydraulic frac research plan
The US Environmental Protection Agency announced its final hydraulic fracturing research plan. It will look at the full cycle of water in fracing, from its acquisition through its mixture with chemicals and actual fracing, to its postfracing stage, including management of flowback and produced water as well as its ultimate treatment and disposal, EPA said.
Initial research results and study findings will be released to the public in 2012, with the final report scheduled for delivery in 2014, EPA said. It noted that it announced locations earlier this year of five retrospective and two prospective case studies.
Oil and gas industry associations immediately responded to EPA's Nov. 3 announcement. The American Petroleum Institute said while it is still studying final details of the agency's final study plan, it is confident that a full examination of fracing will confirm that the process poses no significant risk to human health, drinking water resources, or the environment.
"The oil and gas industry has a key role to play in the future of American energy production," said Stephanie Meadows, API's upstream senior policy advisor. "The industry has taken the lead in working with state regulators to constantly improve operations, industry practices and guidelines, as well as improve communications with local communities."
Daniel Whitten, vice-president of strategic communications at America's Natural Gas Alliance, said ANGA and its member companies "continue to support the congressional mandate that the agency use 'a transparent, peer-reviewed process' that will 'ensure the validity and accuracy of the data.' This transparency is critical to providing the public with confidence about the methodology and assumptions employed in the study."
ANGA is committed to being an active and vocal participant throughout the study process, Whitten continued. "We remain confident that a scientific and data-driven examination will provide policymakers and the public with assurance of the safety of the hydraulic fracturing process," he said.
TNK-BP to join Brazil Solimoes basin exploration
The Brazilian subsidiary of TNK-BP of Russia will become a 45% partner with a unit of HRT Petroleum, Rio de Janeiro, in 21 exploratory blocks in the Solimoes basin in northwestern Brazil.
HRT will remain operator of the blocks. TNK-Brazil Exploration & Production Oil & Gas Natural Ltda. will acquire its interest after Brazil's National Petroleum Agency ANP approves transfer of the concession rights from Petra Energy SA.
Once the rights are transferred, HRT said it will receive $1 billion from TNK-Brazil over 2 years. TNK-Brazil will also reimburse HRT past costs and make future payments of as much as $5 billion for 10 years from the approval of the transfer by the ANP, HRT said. The blocks, on which several exploratory wells have encountered hydrocarbons, total 48,500 sq km (see map, OGJ, Mar. 7, 2011, p. 54).
TNK-Brazil will have the option, exercisable from 30 months from ANP's approval of the transfer, to acquire a further 10% interest in HRT's Solimoes concession rights at a consideration to be based on reserve and resource values.
Cretaceous light oil find off Liberia noncommercial
The Montserrado-1 exploratory well off Liberia is a noncommercial light oil discovery that established a working hydrocarbon system in the Liberian basin.
Operated by Anadarko Petroleum Corp., Montserrado went to 5,400 m in the LB-15 block and encountered good-quality, water-bearing sands in the main objective. It intersected 8 m of hydrocarbon pay in a deeper secondary objective and recovered a sample of light oil.
Anadarko will plug the well and move the drillship to Sierra Leone to drill the Mercury-2 appraisal well and the Jupiter exploratory well on Block SL-07B-11.
Liberia Block LB-15 interests are Anadarko 47.5%, Repsol 27.5%, and Tullow Oil PLC 25%.
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