Kerr-McGee Corp., Oklahoma City, announced another oil discovery in China's Bohai Bay, its third find in an 850,000-acre concession. The latest well, CFD 12-1-1 on Block 05/36, was drilled to 6,804 ft in about 70 ft of water 10 miles east of Kerr-McGee's two recent discoveries on Block 04/36. It tested two selected zones in the Guantao formation, which flowed a combined 2,562 b/d of 34� gravity oil.
Current mapping indicates the tested zones could cover more than 5,000 acres, officials said. Additional logged pay in the Ming and Lower Guantao sections will be evaluated with future appraisal wells.
Luke R. Corbett, chairman and CEO of Kerr-McGee, said he is "very encouraged" by the latest discovery. "The results further validate our strategy of building core areas around high-quality pay concepts," he said. "The rig will now move to Block 04/36 and drill a second appraisal well in the CFD 11-1 discovery area as we continue to size that discovery."
A 3D seismic program and a delineation well are planned for Block 05/36 this year, officials said.
Kerr-McGee is operator with working interests of 50% in 05/36 and 81.8% in 04/36. Pendaries Petroleum Ltd. has interests of 15% in 05/36 and 18.2% in 04/36. Newfield Exploration Co. has 35% interest in Block 05/36.
Newfield's success
The Bohai Bay discovery capped a chain of recent US discoveries by Newfield. The company announced test results Thursday from two recent gas finds drilled beneath the Provident City gas field in Lavaca County in South Texas.
The Real discovery tested 9.5 MMcfd of gas and 67 b/d of condensate from 45 ft of net pay in four zones. The Cash discovery encountered more than 150 ft of net gas pay and flowed 74 MMcfd of gas and 5 b/d of oil.
Newfield has 100% working interest in the Real discovery and 75% in the Cash find.
In the Gulf of Mexico, Newfield reported two more discoveries on Ship Shoal Block 139, where one well encountered 287 ft of net hydrocarbon pay and a second offset found 133 ft of pay. Newfield is operator with 82.5% working interest.
On South Timbalier Block 107, where Newfield is operator with 30% working interest, the No. 2 well recently discovered 144 ft of net gas pay. The partners plan to set a platform over that well, with first production anticipated possibly late this year.
Through a farm-out agreement, Newfield acquired 50% working interest in Grand Isle Block 103 where it successfully sidetracked an existing well to find 30 ft of net gas pay. Company officials said they expect to spud a second prospect on that block this month.
However, Newfield drilled a dry hole on its Wambenger wildcat prospect on Australia license area WA 237-P. The Houston-based independent has 70% working interest in that.
