Santa Fe Snyder makes another S. China Sea find

Nov. 15, 1999
Santa Fe Snyder Corp. has made a second oil discovery on Block 15/34 in the Pearl River Mouth basin in the South China Sea.

Santa Fe Snyder Corp. has made a second oil discovery on Block 15/34 in the Pearl River Mouth basin in the South China Sea.

The Panyu 5-1-1 well, drilled 18 km east of the Panyu 4-2 discovery, encountered 400 net ft of oil-bearing sands in 20 individual reservoirs (OGJ, Oct. 5, 1998, p. 41).

Two zones were tested. The first, at 2,136-43 m, flowed more than 3,300 b/d of 34° gravity oil. The second, at 1,844-52 m, flowed as much as 530 b/d of 24° gravity crude.

"The success of the Panyu 5-1 prospect confirms the existence of a substantial hydrocarbon system in Block 15/34," said Santa Fe Snyder CEO James L. Payne.

"Preliminary evaluations based on logging, testing, and 3D seismic indicate the new discovery to be potentially larger than the Panyu 4-2 discovery, which contains an estimated 50 million bbl of recoverable crude oil, confirmed by an appraisal well drilled in August of this year," said the company.

The Nanhai VI rig is being moved to the Panyu 10-3 prospect, 12 km southwest of Panyu 4-2 field, where an exploratory well will be drilled.

Santa Fe Energy Resources of China Ltd. is operator of Block 15/34 and holds a 50% working interest. SCS Resources Ltd., a unit of Western Atlas International Inc., holds the remainder.

China National Offshore Oil Co. has an option to participate with as much as a 51% working interest in the development of commercial discoveries made on the block, which would be taken equally from Santa Fe Snyder's and SCS's stakes.