EXPLORATION/DEVELOPMENT BRIEFS

Feb. 14, 2011

Brazil

OGX Petroleo e Gas Participacoes SA, Rio de Janeiro, said the 1-OGX-28D-RJS well on the BM-C-41 block in the southern Campos basin off Brazil intersected a 52-m hydrocarbon column with 24 m of net pay in Albian carbonates.

The well is on the Illimani prospect 80 km off Rio de Janeiro state in 126 m of water. OGX holds 100% interest in the block. OGX, which didn't disclose the depth of the find, said drilling is to continue to 3,700 m.

Bahamas

Bahamas Petroleum Co. PLC expressed encouragement at early interpretation of 1,120 km of 8-km cable seismic on its southern licenses off the Bahamas.

The survey confirmed the presence of multiple prospects, some of which are four-way closures while others are stratigraphic-structural traps. BPC has let a seismic processing contract to Spectrum Geophysical.

The prospects identified from shipboard analysis validate the presence of the leads identified in the pre-1987 evaluation, BPC said.

Colombia

Ecopetrol SA reported an oil discovery at the Tinkhana-1 well in the Area Occidental block in Colombia's Putumayo basin.

The discovery, in the Orito municipality 4.8 km northeast of Quriyana field, tested at 140 b/d of 25° gravity oil from the Lower Caballos. TD is 6,812 ft. Ecopetrol has 100% interest in the area under the western area production agreement with Colombia's National Hydrocarbon Agency.

Congo (former Zaire)

SOCO International PLC has plugged and abandoned the Bayingu-1 exploratory well on the Nganzi block onshore Congo (former Zaire).

The well, 35 miles inland from Cabinda's Malongo terminal, encountered oil and gas shows in the primary and secondary reservoir targets. Reservoir sands at the primary Lower Bucomazi target were poorly developed, and the residual nature of the oil shows in the secondary Chela formation indicates lack of closure at this location.

Morocco

San Leon Energy PLC let a contract to Fugro Robertson to reprocess seismic on the Foum Draa and Sidi Moussa licenses off Morocco.

The contractor will reprocess 1,500 sq km of 3D data on Foum Draa and 2,000 km of 2D data on Sidi Moussa. The reprocessing will tie in information from the existing RAK-1 and Ifni Marine-1 wells. The work is to be completed by the end of the 2011 second quarter.

Multiple prospects have been identified on each license, nine of which have resource potential greater than 50 million bbl.

Namibia

UNX Energy Corp., Calgary, let a contract to Petroleum Geo-Services to shoot 1,125 sq km of 3D seismic in the Orange basin east of Kudu gas field off southern Namibia.

Shooting is to start in mid-February 2011 on blocks 2815, 2816, and 2915. Survey size is roughly twice the minimum required work commitment.

The three blocks collectively cover 16,026 sq km along the marine boundary with South Africa. UNX operates the blocks with 90% working interest.

Spain

The government of Spain has awarded the Cairn Group two hydrocarbon exploration licenses in the Gulf of Valencia off Spain.

The licenses cover 3,992 sq km in five contiguous blocks in 50 m to more than 1,000 m of water. Cairn has 100% interest in the blocks.

Tunisia

Cooper Energy Ltd., Perth, has resumed drilling the Menzel Horr-1 exploratory well on the Bargou Permit in Tunisia east of Tunis after declaring force majeure and suspending operations Jan. 17 due to civil unrest.

The well, suspended at 1,225 m after encountering trace oil shows in the initial Ain Grab limestone objective formation, is to continue drilling to the Bou Dabbous limestone at 1,898 m.

Permit interests are Cooper Energy 85% and Jacka Resources Ltd. 15%.

Uruguay

Uruguay's ANCAP will make a presentation on the country's offshore exploratory potential and Round II general bidding terms Feb. 14 in Houston.

ANCAP plans to launch the round in late 2011. The presentation will cover geology, tectonic and stratigraphic evolution of the offshore basins, petroleum systems and models, direct and indirect hydrocarbons indicators, leads and prospects, and analogies with neighboring producing basins. Data rooms will be available Feb. 14-16.

Zambia

The Zambian Ministry of Mines and Minerals has awarded Frontier Resources International PLC petroleum exploration Block 34 in Zambia.

The license covers 6,400 sq km in the Kafue Trough 150 km southwest of Lusaka. Frontier Resources said the area has no prior hydrocarbon exploration and may form part of a southwestern extension of the East African rift system.

The company will proceed to complete the license application process including opening an office in Lusaka. Block 34 is the company's first acreage in southern Africa, where it plans to pursue more opportunities.

Newfoundland

Dragon Lance Management Corp. has spud the Shoal Point 3K-39 exploratory well in western Newfoundland, said participant Canadian Imperial Venture Corp., St. Johns.

The 3K-39 well will be drilled directionally from an onshore surface location on the northern tip of Shoal Point to a subsurface target beneath Port au Port Bay.

The well is designed to test the Green Point shale oil resource play in the EL 1070 permit. Nabors Rig 112 is to take 20-30 days to drill a planned total depth of 2,200 m measured depth, 1,450 m true vertical depth.

Louisiana

Caza Oil & Gas Inc. has spud the Marian Baker-1 deep test in Midland field southeast of Jennings, La.

On the company's Arran 3D seismic prospect in 18-10s-1w, Acadia Parish, the well is projected to 16,000 ft in search of multiple potential hydrocarbon-bearing reservoirs. It is supported by AVO data and is in a proven play fairway.

Caza has a 25% working interest before casing point and a 35.94% working interest after casing point and a 26.24% net revenue interest in the well.

Wyoming

High Plains Gas Inc., Gillette, Wyo., has begun returning to production Powder River basin coalbed methane wells in the North and South Fairway units acquired from Marathon Oil Corp. as of Dec. 1, 2010.

The units have 1,614 CBM wells and flow lines on 155,000 net acres producing 17 MMcfd of gas. High Plains reactivated 52 of the 803 idle wells in December.

The company installed a 150-hp electric screw compressor in previously idle Kingsbury field and had planned to reactivate 75 of the field's 247 wells by Jan. 31.

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