China
Primeline Energy China Ltd. and Primeline Petroleum Corp., London, signed a production-sharing contract covering 7,006-sq-km Block 25/34 in the East China Sea.
Primeline agreed to acquire seismic data and drill exploration wells on the block, 390 km southeast of Shanghai in 75-95 m of water.
China National Offshore Oil Corp. has the right to participate with as much as a 51% interest in any commercial discovery.
Meanwhile, Primeline and CNOOC agreed in principle to sign a new contract that covers the retained area of Block 32/32 and the surrounding area.
The acreage includes the undeveloped 1997 Lishui 36-1 (formerly Vicky) Upper Paleocene gas-condensate discovery well and one appraisal well (see map, OGJ, Dec. 17, 2001, p. 66).
Quebec
Corridor Resources Inc., Halifax, and Hydro-Quebec Petrole et Gaz, Quebec City, plan to drill a second well in mid-2005 on the Chaloupe structure on Anticosti Island in the Gulf of St. Lawrence.
Consulting engineers have estimated oil in place at 30 million bbl/sq mile at the first Chaloupe exploration well drilled in 1999.
The well cut 44 m of net oil pay in the Ordovician Trenton/Black River formation, said Corridor, which calculated that the structure could contain more than 100 million bbl of recoverable oil at a 20% recovery factor.
“The discovery was not recognized at the time due to the underpressured nature of the fractured and partially dolomitized limestone reservoir,” Corridor said. “The reinterpretation of the Chaloupe well results is very encouraging for future exploration and development on the island, particularly with respect to the Trenton/Black River formation.”
Numerous large and small structures are apparent on seismic data with characteristics similar to Chaloupe, including the Jupiter Fault prospect on the south-central part of the island.
Indiana
Work is to start on a coalbed methane exploration and development project in the eastern Illinois basin.
The Gulf Energy Management Co. unit of Harken Energy Corp., Dallas, targets CBM on 400,000 acres in Posey, Gibson, and Vanderburgh counties northwest of Evansville.
The agreement with Indiana Posey LP, San Antonio, commits Gulf Energy to spend as much as $7.5 million in 5 years to evaluate Pennsylvanian coals within 3,000 ft of the surface. The coals are as shallow as 703 ft.
Ute Oil Co., doing business as ACT Operating Co. of Texas, will be designated operator.
The first phase calls for drilling 3 core holes and testing of coal samples. If results warrant, a second phase calls for drilling two 40-acre 5-spot pilots to test commercial production potential, with Gulf Energy earning as much as a 65% interest in the acreage.
Nevada
Makoil, private Las Vegas independent, has swabbed oil at an undisclosed rate from the East Inselberg exploration well in Railroad Valley, Nevada, said 45.4% interest holder FX Energy Inc., Salt Lake City.
The well, in Nye County 9 miles west of Currant, will undergo an extended production test to determine an optimum production rate, FX Energy said. Reservoir, depth, and oil quality details were being held confidential for competitive reasons.
The rig will move to the Makoil-operated Radio well, next in a 5-well exploratory program Makoil and FX Energy are conducting in 2005. Makoil’s interest is also 45.4%.
