Area Drilling

Dec. 2, 2002
Lundin Petroleum AB, Stockholm, said Preussag Energie GmbH, Lingen, Germany, took a farmout of a 331/3% interest in blocks D and E in Albania, subject to National Petroleum Agency approval.

Albania

Lundin Petroleum AB, Stockholm, said Preussag Energie GmbH, Lingen, Germany, took a farmout of a 331/3% interest in blocks D and E in Albania, subject to National Petroleum Agency approval.

Lundin, through its subsidiary Coparex Netherlands BV acquired earlier this year, will remain operator of the blocks with 662/3% interest.

Drilling on the South Tirana prospect, a large subthrust play for Ionian carbonates expected at 4,500 m, is to start in 2003. The structure has more than 35 sq km of closure. Lundin has acquired more than 300 km of 2D seismic on the blocks, which total 1,391 sq km.

Bulgaria

Melrose Resources PLC, London, began awarding contracts for the $52 million development of Galata gas field in the Black Sea, where it hopes to start production by January 2004.

The company said it arranged $23 million in mezzanine financing through AIG Emerging Europe Infrastructure Fund LP and $34 million in senior debt through Black Sea Trade & Development Bank and International Finance Corp. Loan drawdown is subject to conditions and is expected to be available by yearend 2002, Melrose said.

Melrose's Petreco Sarl unit has a contract under which state distributor Bulgargaz would purchase 14.1 bcf/year for 3 years. Galata, 20 km offshore in 35 m of water, has 49 bcf of proved reserves and 31 bcf probable (OGJ, Nov. 3, 1997, p. 31).

Gulf of Mexico

Wireline logs indicated intervals of hydrocarbon pay at an exploratory well on the JB Mountain prospect in 10 ft of water on South Marsh Island Block 223.

Operator El Paso Production Co. drilled to 20,000 ft and plugged back to 19,500 ft due to mechanical problems, said interest owner McMoRan Exploration Co., New Orleans (OGJ Online, June 7, 2002). A McMoRan spokesman would not elaborate.