Melrose to explore Rhone Mediterranean acreage

March 9, 2005
Melrose Resources PLC, London, will seek partners to explore the 25,000-sq-km Rhone Maritime exploration permit in the Mediterranean off southeastern France.

By OGJ editors
HOUSTON, Mar. 9 -- Melrose Resources PLC, London, will seek partners to explore the 25,000-sq-km Rhone Maritime exploration permit in the Mediterranean off southeastern France.

Melrose took a farmout from TGS-Nopec Geophysical Co., Naersnes, Norway, which acquired 4,305 line-km of seismic data in 2001 that Melrose said "demonstrated significant potential." For transferring its 100% interest, TGS-Nopec will recover its costs and retain a net profits interest in the permit.

Two 5-year exploration periods are available after the first 3-year exploration term expires in November 2005. The prospective area lies in an average of 2,000 m of water. Two wells were drilled on the shelf in the 1970s.

Melrose and TGS-Nopec will acquire more 2D and 3D seismic data aimed at delineating already-identified structures in a postsalt play capable of trapping more than 10 tcf of gas. Large structures are also identified in a deeper presalt play believed to be more oil prone, Melrose said.

"The thick clastic sediments in both of these play fairways have been deposited via the Rhone Delta system into the deepwater slope system setting of the Liguro/Provencal basin," Melrose said.

"In the shallower postsalt play the Pliocene interval has undergone significant structuring over time caused by deformation and flow of the salt layer beneath. This folding and faulting has resulted in large closures that could accommodate sizeable accumulations of hydrocarbons. Within the section abundant AVO anomalies suggest the presence of hydrocarbons.

"The second of the two play fairways is the deeper presalt Miocene sequence which directly underlies the salt and has distinct seismic reflection characteristics that could again indicate the presence of hydrocarbons. This sequence is inferred to comprise turbiditic deposits with reservoir, seal and source rocks all present. The combination of large structures and hydrocarbon indicators in both plays is very promising," Melrose said.