Exploration/Development news briefs, Dec. 20


Chevron Corp., San Francisco, has confirmed Lobito field in deepwater Block 14, off Angola. The Lobito 2 was drilled in 1,650 ft of water 4 miles northwest of the Lobito 1 discovery. The appraisal identified 200 ft of net oil pay and encountered an oil column measuring up to 770 ft. The discovery tested 10,200 b/d of 35˚ oil from a single-zone drillstem test under constrained flow conditions. Chevron's Cabinda Gulf Oil Co. is operator with a 31% interest; Sociedade Nacional de Combustiveis de Angola, Agip Angola, and TotalFinaElf-Angola each hold 20%, and Petrogal has 9%.

Danish Oil and Natural Gas Co. has a discovery on Block 16/98 in the Danish North Sea. The Cecilie-1 was drilled in 59 m of water to 2,319 m TD. It flowed 1,888 b/d from a Danien chalk. A sidetrack confirmed the discovery. Owners were DONG, the operator, with 22%, Denerco Oil AS 37%, LD Energi AS 24%, and RWE-DEA AG 17%.

RWE-DEA AG of Hamburg, Germany, has farmed into Ramco Energy PLC's interest in Carpathian Blocks 434, 435, 454, and 455 in southern Poland. RWE-DEA will operate and earn a 50% interest by funding the next $6 million of the work program, including the drilling of two wildcats by September 2002.

Polish Oil & Gas Co. has agreed to purchase the gas produced from FX Energy Inc.'s Kleka 11 discovery well in western Poland, FX said. The company did not reveal the well's production. FX Energy claims to be the first foreign company to sign a gas purchase contract with POGC and the first western company to produce and sell gas from a discovery in Poland.

Essex Resource Corp., Vancouver, decided not to exercise its option to acquire a 12% working interest in the Tatyanovskoe and Oktyabrskoe licenses in the Autonomous Republic of Crimea, Ukraine. In order to maintain its rights to the 12% interest in the two licenses, Essex had to make a non-refundable payment of $90,000 to Nostra Terra (Overseas) Ltd. on or before Dec. 14, with a further payment of $400,000 payable on Jan. 15. Essex said it wanted to focus on its Hassi Bir Rekaiz play in Algeria.

PanCanadian Petroleum Ltd., Calgary, said its third Deep Panuke appraisal well, M-79A, off Nova Scotia, flowed 63 MMcfd over 5 days. The well was drilled to 15,105 ft TD, followed by a horizontal sidetrack in the main reservoir section that found 360 ft of net pay. The second appraisal well flowed 50 MMcfd over 3 days (OGJ Online, Aug. 21, 2000). M-79A is 250 km of Halifax, NS, and about 3 km east of the Panuke platform. PanCanadian, which holds 100%, expects to determine commerciality of the field by end of March.

Noble Affiliates Inc., Houston, said its subsidiary EDC Europe Ltd. has completed an asset exchange with Shell UK Ltd. Shell acquired EDC's 12.5% interest in UK North Sea Block 20/4b and a cash payment in exchange for EDC acquiring Shell's 12.885% interest in Block 21/20a, which includes Cook field. The deal is effective Oct. 1, 1999. Cook field was commissioned in April and was producing 12,000 b/d. Reserves are more than 20 million bbl.

EEX Corp., Houston, plans to sell its interests in 100 shallow water Gulf of Mexico lease blocks to an undisclosed purchaser for $60 million effective Oct. 1, 2000. EEX kept the rights to deeper, non-producing horizons in 10 of the blocks. Separately, EEX said an exploratory well on Garden Banks Block 344 tested shows. The hole went to 21,000 TD. EEX was considering a confirmation well. It holds a 100% working interest and 80% net revenue interest in the block.

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