Exploration/Development Briefs

Jan. 16, 2012

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Norway

Det Norske Oljeselskap has spudded an exploratory well on the Kalvklumpen prospect in the PL 414 license on Block 25/6 in the North Sea off Norway.

The well targets Paleocene Hermod formation and Jurassic Brent Group sandstones at a location east of abandoned Froy field and Total SA's recent Atla discovery.

DNO is operator with 40% participating interest. Bayerngas Norge AS, Faroe Petroleum PLC, and Norwegian Energy Co. ASA hold 20% each.

Tunisia

The Tunisian unit of DualEx Energy International Inc., Calgary, let a contract to CGGVeritas Services SA to shoot a 55 sq km 3D seismic survey over the Bouhajla North prospect on the Bouhajla permit onshore Tunisia.

Surveying and permitting are to start in January 2012, with field recording anticipated to be completed around the end of February. The block lies west of Sidi el Kilani oil field in north-central Tunisia. Depth to the primary Cretaceous Abiod chalk reservoir is 2,200 m.

UK

Hurricane Exploration PLC, focused on hydrocarbon resources in fractured basement reservoirs, has been awarded a frontier license in the second tranche UK 26th seaward license round.

The license covers ten offshore blocks: 5/1, 5/2, 5/3, 5/4, 5/5, 5/6, 5/7, 5/8, 5/9, and 206/28. The area is on the West Shetland platform immediately southwest of the Shetland Isles and northwest of the Orkneys. Hurricane will have a 100% operated interest.

The acreage fits with Hurricane's strategy of exploring niche plays. While focused on the Devonian, the location also offers potential within the underlying basement, a cornerstone of Hurricane's success to date.

The company noted that the license covers a large part of the Devonian Orcadian basin that has the potential to yield important resources in an area largely overlooked on the UKCS. The initial work program will involve shooting 2D seismic.

Colorado

A nonoperated exploratory well in Rio Blanco County, Colo., flowed a stable 315 Mcfd of gas from Cretaceous Mancos for more than 10 days with no pressure decline, confirming the presence of hydrocarbons in commercial quantities, said Dejour Energy Inc., Denver.

The vertical well off the southwest flank of giant Rangely oil field cut 90 ft of net hydrocarbon-bearing sand and had been fracture stimulated with 100,000 lb of proppant and flow-tested in late December 2011. Dejour sees the South Rangely leasehold as a Mancos C (Niobrara) type resource play most suitable for horizontal development. Dejour has a 30% working interest in the vertical well.

TD is 3,863 ft. Results of the vertical test confirmed a trapped hydrocarbon presence in commercial quantities and opened up all of Dejour's remaining South Rangely acreage in the Piceance basin to lower risk exploration downstructure from the gas accumulation.

Dejour said the company and its partners will focus on the oil leg that is typically found downdip from similar gas accumulations in the Mancos C in this area. The company will report an action plan to efficiently exploit its 6,750 operated gross leasehold acres early in the second quarter of 2012.

Dejour said it will immediately begin working with the US Bureau of Land Management to obtain more drilling permits and with partners and offset leaseholders to create a drilling unit to facilitate an orderly and efficient exploitation of the discovery.

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