Sarawak pinnacle reef gas discovery sets Newfield mark

Newfield Exploration Co., which is exploring strategic alternatives for its assets offshore Malaysia and China, has gauged gas at a second pinnacle reef discovery on Block SK 310 offshore Sarawak, Malaysia, and estimates initial gas in place at 1.5 to 3 tcf, the largest conventional exploratory success in the company’s 25-year history.

A drillstem test of the company’s B-14 well, which encountered 1,585 ft of net gas pay among an 1,800-ft gross column in the main carbonate objective, confirmed its commerciality. Newfield, which said it has identified dozens of reef prospects with multi-tcf potential along trend and near gas pipelines, will resume drilling in the 2013 third quarter at the B-17 prospect.

The B-14 well is in 250 ft of water 50 miles offshore Sarawak. It is less than 3 miles from the company’s first pinnacle reef discovery in a similar water depth at which Newfield has declared recoverable reserves of 265 bcf. A joint development is planned.

Recent amendments to gas terms in Malaysia make natural gas developments economically competitive with oil developments, the company said. The company signed a production sharing contract for Block SK 408 and completed farming into Block SK 319 in December 2012 covering a combined 1.7 million acres and nearly doubling Newfield’s position offshore Malaysia.

Newfield operates 1.1 million acre Block 310 with a 30% interest. Mitsubishi Corp.’s Diamond Energy Sarawak subsidiary has 30%, and Petronas Carigali has 40%.

Block 408 covers 1.1 million acres in 200-400 ft of water and has 16 discoveries with existing infrastructure and production hubs located less than 10 miles from dozens of potential prospects identified to date. The company has a 10-well commitment over a 3-year initial exploration period. Newfield will operate with a 40% interest, and Shell and Petronas Carigali have 30% each.

Block 319 covers 580,000 acres in 300 ft of water or less adjacent to Block 408. Newfield has identified several exploratory prospects and has a five-well commitment over an initial 3-year exploration period. Shell operates Block 319 with 50% interest, and Newfield and Petronas Carigali have 25% each.

Goldman, Sachs & Co. is leading Newfield’s strategic alternatives search and is expected to open a data room in the second quarter of 2013.

Related Articles

Stone confirms oil pay with Cardona development well in deepwater gulf

07/08/2015 Stone Energy Corp., Lafayette, La., encountered 288 ft of net pay in two intervals with its Cardona No. 6 development well on Mississippi Canyon Bl...

WAFWA: Aerial survey finds lesser prairie chicken population grew

07/06/2015 A recent range-wide aerial survey found the lesser prairie chicken population rose 25% from 2014 to 2015, the Western Association of Fish & Wil...

Buru awarded onshore Canning licenses

07/06/2015 Buru Energy Ltd., Perth, and Mitsubish Corp. have been granted two production licenses for Ungani oil field in the onshore Canning basin of Western...

Earth model assists Permian asset valuation

07/06/2015 Laredo Petroleum Inc.'s Permian-Garden City asset is an unconventional resource play with more than four potential stacked zones covering a 1,700 s...

China's Yanchi area, western Ordos basin derived from mixed source

07/06/2015 The Yanchi area lies in the west of China's Ordos basin and to the west of the giant Sulige gas field, site of recent breakthroughs in Lower Permia...

Newfoundland, Labrador prepare for deepwater exploration

07/06/2015 Canada-Newfoundland and Labrador Offshore Petroleum Board's (C-NLOPB) most recent call for bids for the Eastern Newfoundland Region is coming to a ...

Group suggests principles for Alberta royalty review

07/06/2015 The Canadian Association of Petroleum Producers (CAPP) has suggested that four principles guide Alberta in an oil and gas royalty review planned by...

US House committee leaders send letters to Plains, PHMSA about leak

07/06/2015 US House Energy and Commerce Committee leaders from both parties asked Plains Pipeline LP and the US Pipeline and Hazardous Materials Safety Admini...

EIA: Argentina, China lead shale development outside North America

07/06/2015 Argentina and China have respectively drilled more than 275 and 200 wells targeting shale plays over the past 2 years, providing each country with ...
White Papers

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by
Available Webcasts

Operating a Sustainable Oil & Gas Supply Chain in North America

When Tue, Oct 20, 2015

Short lead times and unpredictable conditions in the Oil & Gas industry can create costly challenges in supply chains. By implementing a LEAN culture of continuous improvement you can eliminate waste, increase productivity and gain end-to-end visibility leading to a sustainable and well-oiled supply chain.

Please join us for this webcast sponsored by Ryder System, Inc.


On Demand

Leveraging technology to improve safety & reliability

Tue, Sep 22, 2015

Attend this informative webinar to learn more about how to leverage technology to meet the new OSHA standards and protect your employees from the hazards of arc flash explosions.


The Resilient Oilfield in the Internet of Things World

Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.


Taking the Headache out of Fuel License and Exemption Certificates: How to Ensure Compliance

Tue, Aug 25, 2015

This webinar, brought to you by Avalara, will detail the challenges of tax document management, as well as recommend solutions for fuel suppliers. You will learn:

-    Why it’s critical to track business partner licenses and exemption documents
-    The four key business challenges of ensuring tax compliance through document management
-    Best practice business processes to minimize exposure to tax errors


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected