Exploration/Development Briefs

Dec. 3, 2012

Angola

TGS-NOPEC Geophysical Co. has launched an extension to its multiclient 3D seismic survey offshore Angola to further image conjugate margin presalt basins.

The 4,064 sq km extension on Blocks 36 and 37 will add to the original 12,500 sq km survey that has been acquired. Preliminary data are to be available from late 2013.

Australia

Murphy Oil Corp. has expanded its position in the Browse basin offshore Western Australia by picking up 20% working interest in Block WA-408-P where drilling is expected to start in December.

The gas-prospective block directly offsets Block AC/P 36, in which Murphy hold a 50% working interest.

Murphy provided no additional details or terms regarding its stake in on Block Wa-408-P.

Separately, a group led by Santos Ltd. has drilled a large gas-condensate discovery in the Browse basin 60 km west of giant Ichthys field offshore Western Australia (OGJ Online, Nov. 19, 2012).

The Crown-1 exploratory well, in 440 m of water on WA-274-P, logged 61 m of net gas pay in the Jurassic Montara, Plover, and Malita reservoirs and recovered multiple condensate-bearing gas samples.

The WA-408-P joint venture has committed to drill the Dufresne-1 and Bassett West-1 exploratory wells as soon as Crown-1 has been completed.

Congo (Brazzaville)

Murphy Oil Corp. has plugged and abandoned its unsuccessful Opale Marine-1 well in the Mer Profonde Nord block offshore Congo (Brazzaville).

Murphy West Africa Ltd. had 100% interest in the Opale Marine well. No depths were provided, a spokesman said.

As a result of the Opale Marine-1 well, Murphy plans to take a $48 million charge in the fourth quarter. Murphy also will take a $29 million noncash charge to write off the Titane Marine-1 well, drilled in October 2010 and suspended pending results of additional exploratory drilling in the block.

Earlier this year, Murphy announced a $370 million noncash charge to fourth quarter 2011 earnings related to Azurite oil field offshore Congo (Brazzaville). That impairment charge related to lower than expected production rates.

Murphy operates Azurite field with 50% interest (OGJ Online, Jan. 24, 2012).

Gabon

Harvest Natural Resources Inc., Houston, has spudded the Dussafu Tortue Marin-1 exploratory well on the Dussafu Marin PSC offshore Gabon.

The DTM-1 well targets stacked postsalt Madiela and presalt Gamba and Dentale reservoirs to 10,500 ft planned total depth below sea level in 380 ft of water.

Drilling time is estimated at 40 days using the Saipem SPA Scarabeo-3 semisubmersible. Harvest operates the PSC with a 66.667% interest.

Germany

Danoil Exploration AS has taken a farmout from the UK unit of PA Resources AB to earn a 10% interest in the B20008/73 license in the North Sea offshore Germany.

After the farmout, which is subject to regulatory approval, PA Resources will retain a 90% interest.

The license lies partly adjacent to PA Resources operated Danish License 12/06, held 64% by PA Resources and 8% by Danoil, in which the Broder Tuck gas-condensate and Lille John oil discoveries were made in 2011.

Detailed studies are ongoing to assess the scope to progress the Broder Tuck field directly to development, and an appraisal well at Lille John is to be drilled as soon as a rig slot can be secured.

The German license is prospective at similar levels to the two discoveries and to nearby fields in Denmark and the northern Netherlands, specifically Jurassic sandstone, Cretaceous chalk, and Miocene sandstone, PA Resources noted.

Under the farmout, Danoil will partially carry PA Resources costs to obtain extensive 3D seismic coverage over the license and adjacent areas.

Indonesia

Niko Resources Ltd., Calgary, and Zaratex NV encountered no commercial reservoir at the Jayarani-1 exploratory well on the Lhokseumawe PSC offshore Aceh Province in western Indonesia.

Jayarani-1 went to a TD of 11,537 ft and penetrated the predrill geologic objectives of Oligo-Miocene Peutu and Cunda carbonates.

Niko will now move the Ocean Monarch semisubmersible to West Papua to drill the Ajek-1 exploratory well on the Kofiau PSC, the first well to be drilled based on its patented SeaSeep technology, followed by the Cikar-1 well on the West Papua IV PSC and at least four other wells in the area. Partners in these wells include Hess Corp. on Ajek-1 and Statoil ASA on Cikar-1.

Niko's Indonesia business plan has been to acquire a large number of PSCs in emerging exploratory trends, use advanced technology to develop a portfolio of high impact wells, execute leveraged farmouts, and target partners with worldwide deep water experience.

Niko expects to benefit from economies of scale in drilling operations as well as increase the statistical likelihood of success.

Niko made a number of changes in the Ocean Monarch that have and will result in large time and cost savings. For example, due to reductions in the weight of materials and equipment on the rig, the time required for location moves could be reduced by more than 30%, Niko said.

Malaysia

BC Petroleum Sdn. Bhd., the company incorporated to operate and manage the four-field Balai Cluster Risk Service Contract offshore Sarawak, Malaysia, has completed initial tests of the first well, Bentara-2.

The Bentara-2 well in Bentara field achieved rates of 1,685-2,275 b/d of 30° gravity oil on a 40⁄64-in. choke from a perforated interval at 2,665-71 m measured depth below rotary table. The test accessed an estimated 9.4-m reservoir net pay section, said operator ROC Oil Co. Ltd.

Logs indicate as many as 14 reservoir sections in the well with a combined estimated hydrocarbon pay thickness of more than 100 m. Now shut-in, the well awaits arrival of the early production vessel to conduct extended production testing of the remaining reservoirs.

BCP will move the rig to Balai field, 25 km east of Bentara, to drill the Balai-2 well. The Balai Cluster RSC consists of Bentara, Balai, Spaoh, and West Acis fields.

Drilling of appraisal wells is part of the predevelopment phase that began in early 2012. Upon successful completion of the predevelopment phase and agreement on the fields' economic viability, BCP will submit a field development plan and progress to develop the fields.

BCP shareholders are ROC Oil 48%, Dialog Group 32%, and Petronas Carigali 20%.

Morocco

Longreach Oil & Gas Ltd. said Prospectiuni SA has begun shooting 500 line-km of 2D seismic over the Koba and Kamar drill targets on the Sidi Moktar permit in Morocco.

The survey is aimed at derisking and optimizing the drilling locations at Koba and Kamar and to help convert a number of other identified leads into drillable prospects. Prospectiuni has deployed a Vibroseis cableless crew.

Longreach is also launching international tenders for a rig to drill two wells and to procure the associated long-lead items for drilling in the first half of 2013.

Longreach has interpreted more than 4,500 line-km of existing 2D seismic data on Sidi Moktar and has completed reprocessing 1,750 line-km with Key Seismic Solutions Ltd., Calgary. This work has yielded a greatly enhanced image of the prospective Triassic section.

The removal of multiple reflections and imaging of the dipping Triassic rocks, correlated with nearby Meskala gas field, has transformed the prospectivity of the Triassic section, Longreach said.

Norway

A unit of Lundin Petroleum AB, Stockholm, said further geophysical and geological studies are needed to clarify the potential in the Juksa target at its 7120/6-3 S well on PL490 in the Barents Sea offshore northern Norway.

The well, 10 km northwest of Snohvit field, targeted two levels on the Snurrevad-Juksa prospect. The main objective was to prove the presence of hydrocarbons in Lower Cretaceous-Upper Jurassic reservoirs.

Preliminary analysis of a cored section of the reservoir indicate thin oil-bearing sands in a zone 8-9 m thick at the top of a 25-m Lower Cretaceous sand sequence. No reservoir was found to be present in the Snurrevad target.

The Transocean Arctic semisubmersible drilled the well to 2,993 m below mean sea level in 330 m of water.

Lundin Norway AS is operator of PL490 with 50% interest. Spring Energy Norway AS has 30% and Norwegian Energy Co. ASA 20%.