Exploration/Development Briefs

Feb. 27, 2012

China

A group led by ROC Oil Co. Ltd., Sydney, will drill a second appraisal well in 2012 in Bohai Bay offshore China.

The petroleum contract covering the 28 sq km Zhao Dong block was modified in March 2011 to include the adjacent 16 sq km Zhanghai block and 26 sq km Chenghai block with the aim of commercializing previous nearby discoveries and encouraging further exploration. ROC Oil operates the new blocks with 39.2% interest, PetroChina Ltd. has 51%, and Sinochem has 9.8%.

The first appraisal well, ZD CP2N-H-1, was brought on production in August 2011. A subsea oil pipeline from Zhao Dong to the Dagang refinery began deliveries on Oct. 19, 2011.

ROC acquired the Zhao Dong interests from Apache China Corp. in 2006. Production started from C4 field, in which ROC holds an 11.575% unitized interest, and the extended reach area of the C&D fields from new facilities commissioned in October 2008.

Green Dragon Gas Ltd. said it averaged coalbed methane production of 4.4 MMcfd in the 2011 fourth quarter from the Shizhuang South block in China.

The company said it drilled 67 wells in 2011, of which 53 were vertical wells, compared with 29 in 2010. Most drilling was on Shizhuang South, but the 2011 drilling included 5 wells on Guizhou, 4 wells on Qinyuan, 2 each on Fencheng and Panxie East, and 1 on the Shizhuang North. These five are exploration blocks.

The blocks are in Shanxi, Anhui, and Jiangxi provinces.

The company is connecting the pipeline spur that will link the Huabei gas gathering station to China's main West-East trunk pipeline, which is to enable the sale of gas to PetroChina Huabei to start in the second quarter of 2012. It did not list its 2012 drilling plans.

Denmark

Norwegian Energy Co., Stavanger, said it has spudded the Luna-1x exploratory well in License 1/11 in the North Sea 150 km northwest of Esbjerg, Denmark.

The prospect is in Rotliegendes sands. Noreco operates the license with 47% interest. Elko Energy has 33% and Danish North Sea Fund has 20%.

Guinea

Oil shows and sandstones encountered while drilling the targeted Upper Cretaceous section at its Sabu-1 exploratory well offshore Guinea "are particularly encouraging in the development of the turbidite fan plays farther downdip on the concession," said Hyperdynamics Corp., Houston.

The well went to a total depth of 11,844 ft in 2,329 ft of water 90 miles southwest of Conakry.

"Petrophysical analysis of electric logs indicates the presence of hydrocarbons in noncommercial concentrations in multiple layers of sandstones distributed throughout a 1,300-ft interval of Santonian to Turonian age sediments," the company said.

The indicated oil saturation appears to be residual, suggesting that larger volumes of oil formerly were present in the reservoirs but later leaked out or that the rocks lay on a hydrocarbon migration pathway.

Hyperdynamics said the results "provide evidence that hydrocarbon generation has taken place in the basin and enhances the prospectivity of our 9,650-sq-mile concession, one of the largest in West Africa."

Hyperdynamics, concession operator with 77% interest, will incorporate the well results with interpreted data from 4,000 sq km of 3D seismic now being processed, in order to plan the subsequent drilling program in consultation with Dana Petroleum PLC, which has 23%, and the government.

Guyana

CGX Energy Inc., Toronto, has respudded the Eagle-1 exploratory well offshore Guyana that was halted in June 2000 due to overlapping maritime border claims between Guyana and Suriname.

Eagle-1, on the company's 100% owned and operated Corentyne petroleum prospecting license, is to go to 4,250 m to test the Eocene and Maastrichtian geologic zones. The Ocean Saratoga semisubmersible is handling the 60-day assignment.

Following peaceful resolution of the boundary dispute, CGX has shot two 3D seismic surveys, creating a portfolio of prospects on the Corentyne PPL, Eagle-1 being the first well to be drilled to test the original Eocene prospect, plus a deeper Maastrichtian prospect, both of which are stratigraphic tests.

India

Jubilant Energy NV has spudded the Kathalchari-NE appraisal well on the AA-ONN-2002/1 block in Tripura, India. Projected depth is 2,990 m to test the Middle Bhuban equivalent sands encountered in the discovery well, one of which flowed 5.2 MMscfd of gas.

The new well will be the second to appraise the company's Kathalchari-1 discovery. Drillsite is 4 km north-northeast and updip from the discovery well and 2.6 km northwest and downdip of the Srikantabari-1 appraisal well.

Jubilant Energy plans to test the shows encountered while drilling Srikantabari-1, which was terminated at 2,973 m MD due to well control issues. Five Middle Bhuban zones have been identified for testing. Jubilant is operator with 20% interest, and GAIL India Ltd. has 80%.

Indonesia

Salamander Bangkanai Energy, operator of the 4,534 sq km Bangkanai PSC on East Kalimantan, Indonesia, plans to drill four development wells in Kerendan gas field in late February followed by an exploratory deep test.

The rig, having been refitted for high-pressure, high-temperature operations, is expected to be mobilized from Batam Island, Riau, to Kalimantan by the end of February.

The development drilling will enable Kerendan gas field to be put on production. The rig will also explore the very large prospect at depth below Kerendan.

Ivory Coast

Ivory Coast has awarded several ultradeepwater exploratory licenses offshore in the Gulf of Guinea.

Anadarko Petroleum Corp. will operate the CI-515 and CI-516 licenses, 175 km southwest of Abidjan, with 45% interest, with partners Total SA 45% and state Petroci 10%.

Total will operate CI-514, 200 km southwest of Abidjan, with 54% interest, with partners Canadian Natural Resources International 36% and Petroci 10%.

The blocks are in 2,000-3,000 m of water 100 km from land. The work program includes a 3D seismic survey of the entire acreage and one well on each during the initial 3-year exploration period. Total will assume operatorship on each of the three blocks upon the first commercial discovery.

Total plans to spud an exploratory well at the end of 2012 on its CI-100 deepwater block, where it is operator with 60% interest, along the marine boundary with western Ghana.

Libya

Italy's Eni SPA said it has stepped up efforts to fully resume Libyan oil production and gas exports through the Greenstream pipeline and targets a return to the precrisis 280,000 b/d of oil equivalent by the second half of 2012.

Eni has brought its Libyan output back to 240,000 boe/d.

The company restarted oil production at Wafa and Bu Attifel fields in September 2011, turned on Wafa gas field with reopening of Greenstream in October, resumed output of the Sabratha gas platform at Bahr Essalam field via Greenstream in November, and recommenced El Feel and Bouri oil fields the same month.

The company on Dec. 20, 2011, notified its counterpart in the Libyan petroleum contracts, National Oil Corp., of the termination of the April 2011 declaration of force majeure.

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