Azerbaijan
European Bank for Reconstruction and Development granted Frontera Resources Corp., Houston, a $10 million loan for development of onshore oil fields in Azerbaijan and Georgia Republic. Frontera expects a further $50 million loan to be extended this summer.
Frontera, State Oil Co. of Azerbaijan, and Delta/Hess (K&K) Ltd. (Amerada Hess Corp. and Delta Oil Central Asia Ltd.) began in late 1999 to double production from giant Kursange and Karabag* fields on a 116,000-acre block. The combined 4,000 b/d of high-quality oil is shipped via the Black Sea.
The company hopes to develop Taribani field, which holds 1 billion BOE of reserves, and six other discovered fields on 1.3-million-acre Block 12 in eastern Georgia (OGJ, Nov. 23, 1998, p. 90).
China
China National Offshore Oil Corp. boosted its stake in the East China Sea with acquisition of part of the interests of Primeline Petroleum Corp., London.
CNOOC hiked its holding in the Lishui 36-1 and Lishui 32-32 blocks to 85% from the original 51%. Primeline's stake fell to 15% from 49%.
CNOOC licensed the blocks to Primeline in 1994 through production-sharing agreements. In 1998, Primeline made a discovery on Lishui 36-1 that flowed 9.86 MMcfd of natural gas and 117 b/d of condensate on test (see map, OGJ Aug. 9, 1999, p. 80).
CNOOC has decided to hike drilling on the Lishui blocks as part of its corporate strategy this year to accelerate E&P activity in the East China Sea. The agreement commits CNOOC to process the seismic data collected by Primeline on Lishui 36-1 and drill two exploration wells at Lishui 32-32 this year.
CNOOC and Primeline were to set up a joint management committee to supervise the E&P of the two blocks.
Indonesia
Camar oil field off eastern Java could restart later this year.
Indo-Pacific Oil & Gas Inc., Vancouver, B.C., plans to resume production at the field as part of its acquisition of interests in the 1,805-sq-km Northern Camar and 1,220 sq km Tuban blocks from a unit of Carmanah Resources Ltd., Calgary.
Camar was shut-in in March 1999 at 2,500 b/d of oil. Restart cost is estimated at $1.785 million.
Indo-Pacific also plans to investigate selling gas from Camar, drill exploration prospects on the Camar block, and later explore prospects and leads already identified on Tuban, which it reckons holds 90 million bbl.
Tunisia
Nuevo Energy Co., Houston, took interests in two blocks and increased its interest in a third.
Nuevo will operate the 171,000-acre Alyane Permit in the Gulf of Gabes. Two optional 3-year terms follow an initial 4-year term. Nuevo plans to acquire 3D seismic data in early 2001 and drill one wildcat. The area is in the nummulite limestone trend.
The company hiked its interest in the Anadarko Petroleum Corp.-operated, 1.1-million-acre Anaguid Permit in the Ghadames basin with acquisition of a 10.42% interest from Bligh Tunisia Inc. The partners plan to acquire and process seismic data this year and, pending renewal, drill a well in 2001.
Nuevo also hiked its interest in the 900,000-acre Fejaj Permit to 37.5% with acquisition of Bligh's 17.5% share. Nuevo et al. will re-enter and deepen the Chott Fejaj-3 well, drilled to top of salt in 1998, to test a subsalt prospect late this year.
Newfoundland
Hibernia Management & Development Co. Ltd. was beginning oil flow tests at the first production well in Cretaceous Avalon at Hibernia field on the Grand Banks.
Avalon, a complex, discontinuous reservoir, holds more original oil in place than the Jurassic Hibernia zone. The deeper Hibernia pay is producing more than 150,000 b/d from seven wells and is the entire basis for the field's most recent reserve estimate of 700-750 million bbl.
California
Early flow rates indicated that commercial production will be established from below 19,000 ft in the San Joaquin basin.
Berkley Petroleum Corp., Calgary, said the 1 East Lost Hills in Kern County flowed at restricted rates as high as 23 MMcfd of gas from perforations in Miocene Temblor at 19,370-698 ft at the base of an estimated 2,750 ft hydrocarbon column.
An extended test yielded 13.1 MMcfd of gas at 8,100 psi flowing wellhead pressure on a 20/64 in. choke with 295 bbl/ MMcf of water and 75 bbl/MMcf of condensate with 5% reservoir pressure drawdown. Three other uphole zones that flowed gas during drilling remain to be tested.
Meanwhile, Berkley spudded the No. 3 well May 28 on the west flank of the East Lost Hills structure.
North Dakota
Upton Resources Inc., Calgary, said it sees potential for as many as 20 or more wells and ultimate primary recovery of 6-18 million bbl of oil in a Mississippian Fryburg pool in Tracy Mountain field in the Williston basin.
An Upton-operated well in Billings County placed on line in January 2000 is still producing more than 200 b/d of 41° gravity crude from about 14,000 ft. Crude draws a $1.50/bbl premium to West Texas intermediate.
Tracy Mountain has 7,700 acres as presently mapped, and typical gross recoveries are 300,000 to 900,000 bbl/well on 320-acre spacing.
Texas East
Comstock Resources Inc., Frisco, Tex., reported the seventh successful well in its redevelopment program at Double A Wells field. The 3C Champion, in Polk County, flowed 4.2 MMcfd of gas with 333 b/d of condensate through an 18/64 in. choke with 3,000 psi FTP from Cretaceous Upper Woodbine perforations at 13,994-14,042 ft. TD is 14,250 ft.
Comstock, which began the redevelopment program in 1999, has drilled the next well, 3 Jackson.