Argentina
Gold Point Energy Corp., Vancouver, BC, took farmouts from APCO Argentina Inc., Tulsa, Okla., and Antrim Energy Inc., Calgary, on the Capricorn License (Yacimiento Norte 1/B Block) in northern Argentina.
GP Energy committed to pay 50% of a $1 million, 60 sq km 3D seismic program (completed in August 2006) and 50% of a $2 million, 2,300-m exploration well to earn a 25% working interest in the Martinez del Tineo Oeste Prospect.
The prospect, on the Cretaceous Yacoraite oil trend, covers 54 sq km of the 4,008 sq km Capricorn License. The well is to be drilled in the first half of 2007.
After the prospect is drilled, GP Energy will have the option to earn a 25% interest in the entire block by funding 50% of the acquisition of as much as 300 sq km of 3D seismic data and 50% of the cost of two more exploration wells.
The farmout allows Antrim to focus on its Tierra del Fuego region.
Indonesia
A subsidiary of China’s CNPC (Hong Kong) Ltd. completed the acquisition from Continental Energy Corp., Dallas, of 70% of Continental Energy’s shareholding in its Continental-GeoPetro (Bengara-II) Ltd. subsidiary and the Bengara-II production sharing contract.
Continental Energy retained 18% of the 900,000-acre PSC in East Kalimantan.
To earn its 70% stake, CNPC will pay an $18.7 million earning obligation into an account jointly controlled by Continental. The money will fund exploratory drilling on the block.
CNPC will lend Continental development funds and carry Continental’s development costs, if any, in the amount of $41.3 million above the earning obligation. CNPC will pay Continental a $3 million cash bonus contingent on the first commercial oil or gas discovery in the PSC.
The PSC is in the Tarakan basin, where 15 fields with 349 wells have produced more than 310 million bbl of oil and 97 bcf of gas.
Italy
A joint venture has approved the drilling of the Monte Grosso-2 exploration well on the Serra San Bernardo exploration permit in the southern Apennines and is negotiating with Eni SPA for a land rig.
Intergas Piu SRL, a subsidiary of Mediterranean Oil & Gas PLC, London, will operate the well and holds 20% interest in the permit. The other joint venture partners include Eni and Total.
The location is just north of Monte Alpi oil field, one of continental Europe’s largest oil fields, producing 95,000 b/d. Eni operates Monte Alpi. The location is north of Tempa Rossa field, recently cleared for development by Total.
The well is to be drilled to 6,900 m in the third quarter of 2007 seeking oil in Mesozoic carbonates.
Russia
The LLC NK Recher-Komi joint venture reported a modest oil discovery on the North Irael block in the Pechora basin in Russia’s Komi region.
The No. 61 exploration well recovered 59.3 bbl of clean oil and drilling mud and recorded virgin pressures of 182.5 atm on a drillstem test in the Devonian interval at 1,625 m subsea, 15 m high to prognosis, said Arawak Energy Corp., Anguilla, British West Indies. Arawak and Lundin Petroleum AB, Stockholm, each holds 50% interest in Recher-Komi.
Open hole logs indicated 5 m of net pay. The well was being cased for completion.
The block is producing 1,600 b/d of oil from five of the six wells that had been drilled prior to the June 2006 acquisition of Recher-Komi by Arawak’s 50% owned subsidiary, RF Energy Investments Ltd. The block averaged 400 b/d at the time of acquisition.
Arawak looks toward a full 3D seismic survey of the block.
Newfoundland
Vulcan Minerals Inc., St. John’s, Newf., plans to drill two land wells in the Bay St. George basin in western Newfoundland in October and November.
Flat Bay-5 is a downdip test of the Flat Bay oil accumulation, where the company expects to encounter improved reservoir character based on seismic and geological interpretation. It is 2 km east of the shallow Flat Bay-1 discovery well, which encountered 34° gravity, low sulfur oil.
Flat Bay-5 is projected to TD 900 m to evaluate the Ship Cove limestone and Fischells Brook conglomerate of Mississippian age.
North Dakota
Missouri Basin Well Service Inc., Belfield, ND, is moving in a rig to reenter the State 16-1H well in McKenzie County and drill two horizontal legs in Rival, the uppermost member of the Mission Canyon formation of the Mississippian Madison Group.
Rival had produced oil through the vertical wellbore since the initial completion earlier this year.
Basic Earth Science Systems Inc., Denver, said the reentry effort is to take 20 days and cost $350,000 to its 20% working interest. The well is on Basic’s Banks prospect in the Williston basin.
Wyoming
Two wells are under way in Sublette County that target overpressured gas in multiple formations, including Cretaceous Hilliard shale, in the northern Green River basin.
Gasco Energy Corp., Denver, and Hunt Petroleum Corp., Dallas, plan to drill the Cottonwood Ranch 24-21, in 21-32n-111w, to 16,500 ft to test gas potential in the Lance, Mesaverde, Ericson, Rock Springs, and Hilliard shale formations. Gasco is operator with 25% working interest in the well, estimated to cost $8 million to drill and complete.
Gasco Energy, with 100% interest, is drilling toward projected TD of 14,400 ft at the Billy Canyon 2-11, in 11-31n-112w. It is to evaluate Lance, Mesaverde, Rock Springs, and Hilliard. It is eight miles north of 67 Draw field, recently spaced for production from the Mesaverde Group, including the Rock Springs and Ericson formations, and Baxter shale, equivalent to the Hilliard shale.