Exploration/Development Briefs

April 23, 2012

Albania

Bankers Petroleum Ltd., Calgary, said it has cased and suspended the Ardenica exploratory well in eastern Block F in Albania northwest of Patos-Marinza heavy oil field.

Ardenica, a gas prospect, went to a total depth of 2,030 m. Petrophysical and drilling data indicate that the well penetrated several thick porous sands but did not encounter any hydrocarbon shows that would merit testing.

The company will study the well and seismic data to further evaluate and upgrade several other prospects mapped on the 185,000-acre block.

Brazil

HRT O&G Exploracao e Producao de Petroleo Ltda. Said its 1-HRT-5-AM well on the SOL-T-192 block has tested natural gas to open a new production trend in the Solimoes basin of northwestern Brazil.

HRT noted "exceptional flow characteristics through a vertical well" as the flow reached 13.1 MMcfd of gas through a 40⁄64-in. choke. The well is on a previously untested structure 20 km south of Jurua field.

HRT O&G holds 55% working interest in the block, and TNK-Brasil has 45%.

Colombia

Gran Tierra Energy Inc., Calgary, is building location for the La Vega Este-1 exploratory well on the Azar block in the Putumayo basin of Colombia.

The well, targeting the same Cretaceous sandstone intervals present in the Costayaco and Moqueta discoveries, is expected to spud in late April.

Gran Tierra is operator with 40% working interest, Lewis Energy Colombia Inc. has 40%, and Gold Oil PLC has 20% subject to Agencia Nacional de Hidrocarburos approval.

Separately, Parex Resources Colombia Ltd. and Petroamerica Oil Corp., Calgary, plan to begin a long-term test of the Las Maracas oil discovery well and spud an appraisal well in this year's second quarter on the 110,400-acre Los Ocarros block in Colombia's Llanos basin.

The Las Maracas-2 sidetrack tested at rates as high as 938 b/d of 37° gravity oil in August 2011. Through various transactions the companies expect to emerge with 50-50 participating interests in the block, subject to approval by Colombia's ANH.

Egypt

The PetroSinai joint venture has established production of 60 b/d of clean oil on a progressive cavity pump after workover of the Lagia-6 well drilled in 2000 in Lagia field on the Sinai Peninsula in Egypt.

The Lower Miocene Nukhul reservoir produces 16-19° gravity oil from just above 1,500 ft (OGJ, Feb. 6, Newsletter). The rig has moved to the Lagia-7 well, also drilled in 2000, for a rework, after which it is to drill four new wells using either fracturing or cyclic steam technology.

A proposed engineered development plan calls for drilling as many as 55 wells to fully develop the current fault block on the 32 sq km Lagia Development Lease 26 km south of Sudr, Matarma, and Asl oil fields. MENA sees light oil potential in the Cretaceous at 3,400-4,300 ft.

Participants in PetroSinai are Egyptian Petroleum Co. and MENA Hydrocarbons Inc., Calgary.

Guyana

Sagres Energy Inc., Calgary, will return its 25% interest in a 7,800 sq km petroleum prospecting license in the Takutu basin in central Guyana to Canacol Energy (Guyana) Inc.

Sagres Energy, which acquired the interest on Oct. 30, 2009, by farmout from Canacol Energy, plans to focus its time and resources on its assets in Colombia and Jamaica.

Hungary

The PetroHungaria kft combine has encountered 20 m of gas-bearing formations in the targeted Miocene volcaniclastic reservoirs at the Peneszlek-105A sidetrack in Peneszlek field in eastern Hungary.

The PEN-105A well exceeded management expectations and will extend field life for at least 2 years, said Ascent Resources PLC, which holds 48.3% interest in PetroHungaria. DualEx Energy International Inc., Calgary, has 40.44% interest.

PEN-105A was sidetracked from the existing PEN-105 well to 1,640 m measured depth at a bottomhole location 460 m northeast of the original well. It was designed to drain gas reserves from the northern half of the structure, which is bisected by a sealing fault. The initial well recovered 850 MMcf of gas from the smaller southern part of the structure since going on line in March 2010.

Preliminary testing of a 7-m perforated interval at PEN-105A yielded a flow of 928 Mscfd, and the well is being reconnected to production facilities. PetroHungaria will perforate additional section and perform an acid wash in coming weeks. Acid wash doubled the production rate at the initial well.

Kenya

Simba Energy Inc., Vancouver, BC, will shoot 750 sq km of 3D seismic on land Block 2A in Kenya starting in May 2012.

GeoDynamics Research SRL of Italy will gather the data with 250 measuring points on 2-km spacing over parts of two basins. Simba has already identified two leads on the block by reworking existing 2D seismic.

GeoDynamics said the infrasonic passive differential spectroscopy to be employed is a direct hydrocarbon indictor process that utilizes high sensitivity seismometers. The seismometers are used in an extensive worldwide grid monitoring the earth's subsurface seismic activity. This grid identifies the background noise as a frequency spectrum.

IPDS detects low frequency in the 1-8 Hz range as spectral signatures over hydrocarbon reservoirs. A hydrocarbon reservoir is a frequency converter and deforms the frequency of the natural earth noise. These deformed signals on spectroscopic analysis produce unique spectral signatures that are used as DHIs.

Namibia

Azimuth Ltd., Hamilton, Bermuda, will earn a 20% working interest from Eco (Atlantic) Oil & Gas Ltd., Toronto, in three licenses in the Atlantic offshore Namibia under a farmout agreement.

Azimuth will fund 40% of the cost of 2,500 sq km of 3D seismic on blocks 2012A, 2213A-2213B, and 2111B-2111A which total more than 25,000 sq km. Assignment of a 20% working interest in the licenses to Azimuth is subject to the approval of Namibia's Ministry of Mines & Energy.

Eco Atlantic, through the project management group of Kinley Exploration and Azimuth, will be responsible for designing, sourcing, and operating all aspects of the 3D seismic program, expected to cost more than $25 million.

Eco Atlantic currently holds a 90% working interest in the licenses through a subsidiary, and Namibia's state NAMCOR has 10% carried.

Meanwhile, Eco Atlantic terminated a farmout agreement with West Bay Investments Ltd. as to the 2013B, 2014B, 2114, and 2418 onshore coalbed methane blocks that cover 7.4 million acres and has been granted an extension to drill at least one well by March 2015.

Oman

DNO International ASA drilled the West Bukha-5 development well on Block 8 in the Persian Gulf off Oman to 200 m above the top of the target Lower Cretaceous Thamama reservoir.

The company plans to drill into the top of Thamama, set 7-in. liner, and drill a 600-m horizontal section in Thamama. DNO is operator of 277 sq km Block 8 with 50% interest, and LG International Corp. has 50%.

Meanwhile, production from the company's two operated fields is temporarily shut in as a result of blockage in the pipeline between the Bukha and West Bukha production platforms that occurred in routine pigging operations. Efforts are under way to resolve this situation, but total downtime may be as much as 4 weeks.

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