P. 2 ~ Continued - Exploration/Development Briefs

Nov. 21, 2011

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Tunisia

Cooper Energy Ltd., Perth, expects to have processed data available from the high-resolution 3D seismic survey on its Nabeul permit in the Gulf of Hammamet off Tunisia available for interpretation in third-quarter 2012.

CGGVeritas shot 600 sq km of full-fold data on the 3,352 sq km permit in September through November. Survey objectives were to mature the Alpha, Gamma, and Updip La Marsa leads in the western part of the permit adjacent to Birsa and Oudna oil fields.

The permit lies 80-150 km off Tunisia in 270-1,200 m of water and borders Italian waters. The main exploration play is Miocene Birsa formation sandstones. The 3D seismic is expected to enable the location of a well to be drilled by 2013.

Alberta

Strategic Oil & Gas Ltd., Calgary, has completed its third successful Keg River well in the North Marlowe oil pool at Steen River, northwest Alberta, and plans to drill three more vertical Keg River wells in first-quarter 2012.

The 100/15-22-122-21w5m vertical well stabilized at 225-250 b/d of clean oil with associated gas after 11 days on production. It penetrated a dolomite zone with over 12 m of net oil pay and is structurally the highest well in the pool, on the northeastern rim of the Steen River astrobleme. The well tested close to virgin reservoir pressure.

The $1.7 million well confirms the lateral extent of the oil pool and the porosity mapping derived from the 3D seismic. Strategic has a 100% working interest in the North Marlowe Keg River pool.

British Columbia

Yoho Resources Corp. and Progress Energy Resources Corp., both of Calgary, have gauged gas-condensate in Devonian Upper Montney tight sands at horizontal wells at Nig northwest of Dawson Creek, British Columbia.

The d-97-H/94-H-4 well, in the northern part of Yoho's land block 8 miles north of the first Yoho-operated well at Nig, flowed up tubing from the horizontal section on clean-up at a rate of 5.6 MMcfd with 700 psig on a 38⁄64-in. choke with an average 56 b/d of free condensate after a seven-stage frac using a plug and perf completion.

Yoho estimates liquids production to be in excess of 30 bbl/MMcf, 40-50% condensate.

The company's first Yoho horizontal well at Nig, a-41-A/94-H-4, was placed on production in November through third-party facilities at initial rates of 5 MMcfd. The d-97-H/94-H-4 well is expected to be on production early in 2012.

Yoho and Progress are drilling a third horizontal well targeting the Upper Montney. The area is also prospective for Lower Montney, which is expected to be tested in early 2012 with the drilling of a fourth well.

Yoho has accumulated 40,751 gross (20,375 net) acres of land at Nig.

Yoho anticipates it will apply to license a 25 MMcfd compressor station at Nig, construction of which will depend on upcoming drilling results.

Louisiana

Leasing spurred by the oil and gas potential of the emerging Jurassic Lower Smackover Brown Dense limestone has spread to East and West Carroll parishes, together with St. Tammany the state's only parishes without hydrocarbon production.

Mineral rights to more than 6,000 acres of state land were leased in October in south-central East Carroll Parish, among the nation's poorest, netting more than $1.8 million, said Louisiana Department of Natural Resources Sec. Scott Angelle. Competition pushed lease prices above $300/acre, uncommon in Louisiana outside the Haynesville shale play, Angelle noted.

Private interests have nominated 3,000-plus acres of state water bottoms centering on the southwest quarter of East Carroll and parts of West Carroll and Richland parishes in the state's northeast corner for bid in the December sale. East Carroll Parish Clerk of Court staff report that private mineral lease transfers have accelerated to a rate unprecedented in recent years.

Operators have drilled 125 wells ever in East Carroll, and the 30-plus wells drilled since 1981 were all dry, Louisiana Office of Conservation records show.

Initial exploration of the Brown Dense began farther west in southern Arkansas and Claiborne and Morehouse parishes, La. (OGJ Online, July 29, 2011).

The Morehouse well was the first permitted that parish in 3 years and was quickly followed by two more, including one by ExxonMobil subsidiary XTO Energy. Drilling has started at one of three other wells permitted in Claiborne.

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