Area Drilling

Dec. 20, 2004
Williams Cos., Tulsa, said its net production in Argentina averages 6,000 b/d of oil and 16 MMcfd of gas based on its 69% ownership in APCO Argentina Inc., Tulsa.

Argentina

Williams Cos., Tulsa, said its net production in Argentina averages 6,000 b/d of oil and 16 MMcfd of gas based on its 69% ownership in APCO Argentina Inc., Tulsa.

Extension and infill drilling on several blocks has brought Williams's net proved reserves to 35.7 million boe.

Williams's interests are 53% in the Entre Lomas concession in Rio Negro and Neuquen provinces, 45% in the Canadon Ramirez concession in southwestern Argentina, and 2% in the Acambuco concession in northwestern Argentina.

Also, APCO Argentina in August 2003 completed a seismic commitment to become a 50% working-interest partner in the 2.1 million acre Capricorn exploration block near the border with Bolivia.

Chad

The government awarded Gulf of Guinea Petroleum Corp. Inc. the Chari-Ouest and Largeau concessions in central Chad.

Chari-Ouest covers 8,200 sq km in the center of the Doba basin adjacent to discoveries and production managed by ExxonMobil Corp.'s Esso Chad E&P Inc. unit.

Largeau covers more than 251,000 sq km in central and northern Chad.

GGPC is 51% owned by Energem Resources Inc., a Vancouver, BC, mining and energy concern.

Earlier this year, Gabon awarded GGPC rights to the 105 sq km East Orovinyare production license. Marathon Oil Corp. discovered the East Orovinyare accumulation in 1997 in 19 m of water off Gabon. GGPC plans a fast-track development. The East Orovinyare discovery well cut an oil column of more than 400 ft, and the first appraisal well flowed a combined 2,460 b/d of 35° gravity oil from the Upper Cretaceous Batanga formation.

Italy

Po Valley Energy Ltd., Rome, plans to develop gas reserves in northern Italy's Po Valley.

The company, formerly North Sun Italia SpA, plans to list on the Australian Stock Exchange after its initial public offering was oversubscribed. PVE will have $70 million market capitalization.

Edison Gas SpA, operator of the San Vincenzo Permit, drilled a successful gas well in Santa Maddalena field that cut "extensive gas columns in three main zones" and was cased to 1,005 m, PVE said. This well should start production in mid-2005.

PVE also plans to redevelop Sillaro field on the Crocetta Permit 30 km east of Bologna and Vitalba field on the Cascina San Pietro Permit 23 km east of Milan.

ENI SpA, Milan, originally developed all three of the fields in Tertiary reservoirs.

PVE also has interests in the Pandino, Malerba, and Clodo exploration permit areas and the Castrocaro permit application area.

Jordan

The government awarded Sonoran Energy Inc., London, rights to assess the exploration potential of the 11,250 sq km Azraq block east of Amman and study the prospects for boosting production from Hamzah field using modern technology.

After 5 months, Sonoran, working with Jordan's state Natural Resources Authority, will have first option on the block subject to agreeing a mutually acceptable work program with NRA.

The eastern part of the Azraq block contains the northerly extension of the Azraq-Sirhan graben, mature for oil generation, Sonoran said.

Hamzah field, on the same block 100 km east of Amman, has produced since 1985, but the last well was drilled in 1989. The reservoir is a carbonate that produces through vertical wells. Production has declined to 40 b/d recently from more than 400 b/d at peak, and cumulative recovery is nearly 1 million bbl of sweet oil.

The oil is trucked to the 90,400 b/d Jordan Petroleum Refinery at Zerka on the outskirts of Amman.

Saudi Arabia

Saudi Aramco discovered an oil field in the central kingdom 185 km south of Riyadh and just off the southwest edge of large Nuayyim oil field.

The discovery well, Abu Sidr-1, flowed 3,000 b/d of 54° gravity Arabian superlight crude at 152 psi wellhead flowing pressure through a 36/64 in. choke on a vertical cased-hole test from a Permian Unayzah A reservoir at 8,530 ft.

Higher rates from this zone are expected when using horizontal completions in the future, Saudi Aramco said.

UK

Oilexco Inc., Calgary, plans to test its 12th appraisal well near the 1990 Brenda oil discovery in the UK central North Sea.

The 15/25b-12Y well cut 64 ft of gross oil pay in a Paleocene Forties channel sand that had excellent reservoir characteristics, Oilexco said.

The company has drilled six appraisal wells, 12 including sidetracks, 11 of which have intersected oil, and four of which have been production tested.

The area is in the Outer Moray Firth basin and 8 km southwest of the Agip SPA's Balmoral field production facility, to which Brenda may be tied back (OGJ, Aug. 16, 2004, p. 52). Production could begin in 2006.

Common oil/water contacts in several well bores including 12Y "indicate this area to be an extension of the 'Brenda East' accumulation to the northwest," Oilexco said. Another set of well bores defined the "Brenda West" accumulation.

Uzbekistan

The government, Uzbekneftegaz, and OAO Lukoil, Moscow, placed into effect the production-sharing agreement for the Kandym-Khauzak-Shady gas project in southern Uzbekistan.

Lukoil Overseas 90% and Uzbek- neftegaz 10% will start work under the 35-year PSA, where they expect to spend more than $1 billion over project life. Commercial gas production is to start in 2007 at 315 MMcfd, and estimated ultimate recovery is placed at 7.3 tcf.

The steering committee drafted reservoir management plans for Khauzak and Shady fields and a work program and budget for 2005.

The fields are within 50 km north and east of Turkmenabat (Chardzhou), Turkmenistan, and Kandym field extends into Turkmenistan (see map, OGJ, Oct. 14, 2002, p. 44).

The international unit of former Enron Corp. once targeted development of 15 fields in Uzbekistan's Kandym and Surhandarya regions (OGJ, Feb. 13, 1995, p. 32).

Alberta

Private Glacier Energy Ltd. and Vermilion Energy Trust, Calgary, are targeting coalbed methane and shallow conventional gas in central Alberta.

The program calls for the drilling of 20-25 wells before winter freeze.

Glacier cased one well with pay zones in Drumheller coals and the Edmonton sand and Belly River formations in the quarter ended Sept. 30 and recompleted two wells, resulting in combined production of nearly 400 Mcfd from all zones.

Glacier drilled and cased 7 more wells by early November and planned to drill 15 more wells. Then it will focus on completions and tie-ins in winter.

All of the cased wells encountered the expected coal beds, and several also cut attractive shallow gas formations. Anticipated completion rates are 50-300 Mcfd/well.

Kansas

Petrol Oil & Gas Inc., Las Vegas, plans to improve production on a 522-acre oil property in eastern Kansas with 35 wells that it acquired from an undisclosed seller.

The acquired land, designated Petrol-Paola, is east of the company's Petrol-Rantoul (RWJ) property in Franklin, Miami, and Johnson counties in Paola-Rantoul field. Petrol will operate the property for Petrol Paola LLC, in which it has 20% net revenue interest.

Petrol also began a 25-well drilling program on a newly acquired, fully-equipped coalbed methane property producing 3 MMcfd in Thayer gas field in Southeast Kansas. Seller was not disclosed. The initial target is Cherokee coal seams on its Coal Creek Project in Coffey County.

Utah

Stone Energy Corp., Lafayette, plans to test coalbed methane potential on 27,000 net acres 40 miles southeast of its Monument Butte oil and gas field in Duchesne County.

In the company's first foray into CBM, it will drill 3-5 exploratory wells to test coal beds at 2,000-4,000 ft in 2005.

The project is part of the company's overall 2005 capital budget of $315 million before acquisitions and capitalized overhead costs. Stone plans to participate in 62 wells next year. The budget breakdown is Gulf Coast-Gulf of Mexico shelf 50%, GoM deep shelf 20%, and Rocky Mountains 15%.