Doris Leblond
OGJ Correspondent
PARIS, Sept. 29 -- With oil prices high, field development and production in France remain brisk this year as new wells were drilled in old fields to optimize production. Outlays should be in line with the €78 million announced at the start of 2006.
Activity also includes the first two holes drilled on the Bleue Lorraine coalbed methane permit held by operator European Gas Ltd. of Australia and its partner Heritage Petroleum PLC.
However, geologist Charles Lamiraux, head of mining titles at the Industry Ministry's Office of Oil and Gas Exploration and Production, informed OGJ that the €67 million exploration expenditure expected for 2006 in France and its overseas territories likely will not be reached.
"Following the single exploration well drilled in 2005 [La Tonnelle 1 drilled in the Paris basin onshore France by operator Lundin Petroleum, Vermilion, and partner Madison Energy France], which turned out positive, none has been drilled this year because of the unavailability of equipment and other setbacks," said Lamiraux.
"But some 20 new permits requested in 2005 and 2006 are pending approval," with a number of them in competition over the same acreage, he added.
Permits pending
Among the pending exploration permits are eight in the Paris basin, seven in the Aquitaine basin east of Lacq, two in the Jura area in eastern France, one in the southeast, one in Lorraine, and one in Alsace.
"This means that there should be greatly renewed exploration activity in 2007 and 2008," Lamiraux forecast.
The Mining and Geological Research Office (BRGM, Bureau de Recherches Géologiques et Minières), in cooperation with Institut Français du Pétrole, has just published a survey of Aquitaine's oil and gas geology, giving a synthesis of the region's oil and gas potential.
Lamiraux pointed to a number of new entrants requesting exploration permits:
-- Encana Corp., Calgary, is the first company to target nonconventional tight gas in France on the 3,478 sq km Permis de Foix in the Aquitaine basin.
-- Canada's Exceed Energy France requested a 1,405 sq km permit called 1522 Ger in the Aquitaine area.
-- The UK's Europa Oil & Gas Ltd. is in line for two permits in Aquitaine—the 928 sq km Bearn des Gaves and the 1,405 sq km Tarbes Val d'Adour.
Lamiraux said the partnership of Roc Oil Ltd., Sydney, and Houston-based Marex, has requested a 5-year permit on Juan de Nova Maritime Profond that encompasses 62,000 sq km in the Mozambique Channel off Madagascar. The Norwegian firm TGS-Nopec Geophysical Co., Naersnes, acquired seismic data in the Mozambique Channel off southeastern Africa and is offering it for sale to those interested in exploring there.
Hardman Resources Ltd. has requested a 5-year renewal of its 35,221 sq km Guyane Maritime permit where it carried out seismic runs. It is looking for a partner to drill a well in 2007.
The permit for Canal de Corse, off Corsica's eastern coast, expired and was abandoned because TGS-Nopec was unable to carry out work due to administrative delays and local obstruction.
A substantial change took place on France's E&P scene as the sale of Esso Rep's seven fields to Vermilion Rep was finalized in July (OGJ Online, July 11, 2006). Vermilion Rep, the country's main oil producer with 9,700 b/d, accounts for 50% of total production.
