Area Drilling

July 10, 2000
Pan Andean Resources PLC of Ireland spudded a wildcat in late June on the Chipiriri structure on the 777,500-ha Chapare block in central Bolivia.

Bolivia

Pan Andean Resources PLC of Ireland spudded a wildcat in late June on the Chipiriri structure on the 777,500-ha Chapare block in central Bolivia.

Projected TD is 3,750 m at the wildcat, set up to evaluate the Tertiary Petaca and Cretacous Yantata formations in the northwestern Chaco basin.

Kazakhstan

Kazakhoil and Nelson Gold, a Canadian mining company, agreed to form a 50-50 joint venture to develop Alibekmola and Kozhasay gas and condensate fields in the Aktobe region of the Precaspian basin.

Kazakhoil will provide its rights to develop the oil fields, while Nelson Gold will arrange $800 million in project financing. Target is for initial production in 2002.

Morocco

Morocco will open a bidding round in October for waters offshore between Rabat and Safi.

New incentives include a reduced level of state participation in field development and a 10-year income tax holiday. Another is zero royalty on initial production, and thereafter royalties of 10% for crude oil (7% for deep water) and 5% for gas (3.5% in deep water).

New Zealand

AMG Oil exercised its drilling option in Petroleum Exploration Permit 38256 in the Canterbury basin.

AMG will provide $2 million for the drilling of two land exploratory wells on the permit.

As agreed between Indo-Pacific Energy and AMG, the work increases AMG's project stake to 80% from 30%.

Fletcher Challenge Ltd.'s energy division reported better-than-expected flows from its Pohokura-2 confirmation well offshore in the Taranaki basin.

It flowed more than 18 MMcfd of gas plus 89 bbl/MMcf of condensate. Both results are better than those of the discovery well drilled in March and may upwardly-revise initial reserve estimates for the field of around 430 MMcf.

The condensate ratio is also better than that from New Zealand's major Maui field.

Canada

PanCanadian Petroleum Corp.'s board approved a $370 million capital spending hike in 2000 that would bring outlays to $1.3 billion, excluding acquisitions.

Most of the added investment will go to further natural gas development in western Canada, build two gas-fired generation plants near Calgary, and fund additional appraisal and exploration work off Nova Scotia.

Suncor Energy Inc., Calgary, and Conestoga-Rovers and Associates, Waterloo, Ont., signed a 5-year agreement to pursue methane and carbon dioxide drilling and production projects in municipal landfills in Canada.

The pact is part of Suncor's commitment to invest $100 million in alternative and renewable energy projects during the next 5 years. The project also has emissions trading implications.

CRA aided in the design and development of a number of landfill gas collection and control systems in Toronto, Ottawa, Waterloo, and elsewhere. Produced gas tends to be 50-50 methane and CO2, CRA said.

California

Tri-Valley Oil & Gas Co., Bakersfield, was to install a second liner to test the deepest zones penetrated at an exploratory test in the San Joaquin basin.

Tri-Valley and its Canadian partners cemented 7 in. liner at 12,495-18,015 ft at Ekho 1 in 3-27s-22e, Kern County, PennPoint reported. TD is 19,085 ft.

The operator reported finding 48.6° gravity sweet crude without water plus 1,460-btu associated gas at an unspecified open-hole level below the 7 in. liner. Prospective zones below the liner are the Vedder and Phacoides members of Miocene Temblor.

The well is in the same square mile with a 1975 well that produced oil from Vedder at a maximum 18,060 ft and held California's producing depth record for a time.

Texas

Exploration Co., San Antonio, plans to start drilling shortly for oil in Cretaceous San Miguel at 2,500 ft and coalbed methane on the 95,000-acre Farias Ranch in the Maverick basin.

The firm signed contracts for three additional rigs to speed up development of Glen Rose, San Miguel, Pearsall (horizontal), Georgetown, and coalbed methane prospects.