Exploration/Development Briefs

Jan. 16, 2012

Brazil

A drillstem test of 8 m of new pay in the Carboniferous Jurua formation in the 1-HRT-4-AM well in the Solimoes basin in Brazil indicated a production potential of 8.8 MMcfd of gas and 300 b/d of 65° gravity condensate, said HRT Participacoes em Petroleo SA, Rio de Janeiro.

HRT said the TUS-116 rig will remain on SOL-T-194 block to test an updip appraisal well on the same structure and further evaluate its commercial potential. The HRT-4 well, 25 km south of Urucu, reached a total depth of 2,806 m. HRT has 100% interest in the block.

Meanwhile, HRT spudded the 1-HRT-6-AM well on the Eucalipto prospect in the Tefe municipality in the SOL-T-170 block. It is to test a 20 sq km structure 10 km southwest of Araracanga field and 20 km southwest of the 1-BRSA-769-AM oil producing well.

Main targets of 1-HRT-6 are the Jurua at 2,950 m and the Devonian Uere formation. Forecast final depth is 3,400 m.

China

Far East Energy Corp., Houston, said it agreed with China United Coal Bed Methane Corp. to retain, relinquish, and extend the exploration period of CBM blocks in China.

The modification agreement will be forwarded to the Ministry of Commerce for formal approval.

On the Yunnan block in Yunnan Province, Far East would relinquish the Enhong area and retain the 119,340-acre Laochang area, which it considers to hold much greater potential.

Far East has drilled 11 wells in the Laochang area compared with three in Enhong, which has difficult topography, and considers large parts of Enhong marginal or nonprospective.

The company said that China in the last few weeks has discussed increasing CBM subsidies for producers to 0.5 yuan/cu m from the current 0.2 yuan. If enacted, that would increase the total for which gas produced by Far East may be sold to $7.85, including government subsidies.

France

Gallic Energy Ltd., Calgary, began operations at the first of two wells it will reenter seeking gas-condensate on the 127,000 net acre Ger permit east of Lacq and Meillon gas fields in the Aquitaine basin of France.

The company targets gas in three conventional formations to 3,000 m measured depth, including the 200-m thick Cretaceous flysch carbonate that had gas shows that were never tested, at the Ossun-2 well. Total SA predecessor Soc. National des Petroles d'Aquitaine drilled the well in the late 1960s.

Gallic is preparing a second drill site, Azereix-1, for reentry next. Gallic is 100% owner and operator of both wells.

Ireland

The PR Singleton Ltd. subsidiary of Providence Resources PLC has been offered a frontier exploration license on six blocks in the Rathlin basin off Northern Ireland.

The license covers the 125/18, 125/19, 125/20, 125/23, 125/24, and 125/25 licenses 75 km northeast of Londonderry. Several wells have been onshore from the offshore blocks.

The initial license phase requires a well to be drilled in order to advance to the next phase. Providence has begun technical studies. The offer, part of the UK's 26th seaward round announced Dec. 30, 2011, gives the company interests in eight basins off Ireland.

India

Jubilant Energy NV, Amsterdam, will test five zones totaling a gross 92.5 m in the Miocene Middle Bhuban formation encountered at the Srikantabari S-1 appraisal well on the southern part of the AA-ONN-2002/1 block in Tripura, eastern India.

The S-1 well was drilled to appraise Middle Bhuban reservoir sands tested in the Kathalchari-1 discovery well. Drilling was terminated for well control reasons at 2,973 m measured depth versus the planned target depth of 3,323 m because of a gas kick at 2,972 m. Another gas kick was observed at 2,781 m.

Jubilant holds a 20% participating interest in the block through its subsidiary Jubilant Oil & Gas Pvt. Ltd. India, operator for the block. GAIL Ltd. holds the balance 80% participating interest.

Indonesia

A 2D multiclient seismic survey is to start over several open acreage blocks in the Sumba Straits off Indonesia.

The prefunded program by CGGVeritas, Spectrum Geo Inc., and GeoData Ventures is to cover 1,325 km and start in early January. Final deliverables are expected in March.

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