Exploration/Development Briefs

Jan. 9, 2012

Algeria

Petroceltic International PLC issued final test results on the AT-9 appraisal well in Ain Tsila field in eastern Algeria that appear to be among the highest gas flow rates achieved from an unstimulated Ordovician well in Algeria.

Petroceltic operates the Isarene permit in the southern Illizi basin with a 56.625% interest, Sonatrach has 25%, and Enel has 18.375% pending final ratification.

Following debottlenecking of the surface flow lines at well AT-9, the well has now tested at a maximum flow rate of 67.6 MMscfd. Besides being without fracture stimulation, the test rate was constrained by surface facility capacity.

The upper zone flowed at rates of 11.7-67.6 MMscfd plus 360-1,005 b/d of condensate with 2,342-933 psig flowing wellhead pressures on 32-181/64-in. chokes. The lower zone flowed at 6.8-8.9 MMcfd plus 17-205 b/d of condensate with 331-1,356 psig FWHP on 32-84/64-in. chokes.

The company said, "The relatively high flowing well head pressure indicates that the well could potentially deliver at higher rates in a production setting and underlines our confidence in achieving our planned development plateau rates of 400 MMscfd."

Israel

Adira Energy Ltd., Toronto, has relinquished its 100% owned, 31,000-acre Eitan license in the Hula Valley onshore northern Israel.

After assessing the findings of its 1,000-m well to evaluate the potential for field development, including the wireline coring of coal, desorption analysis for gas content, and evaluation of geological parameters, the company submitted a report to the office of the petroleum commissioner of the Israeli Ministry of National Infrastructures. The company noted that the quality of the coals tested is poor and that an economically viable project would not likely result.

Adira has recommended returning the license, coordinating with the ministry the activities necessary for closing the project including abandonment of the well, returning the site to the landowners, and selling its drilling equipment.

Adira continues to concentrate efforts on developing its Gabriella, Yitzhak, and Samuel licenses off Israel.

Morocco

Kosmos Energy Ltd., Dallas, entered into a reconnaissance contract for the Tarhazoute deepwater block off Morocco.

The block covers 1.9 million acres in 3,250-8,200 ft of water in the Agadir basin between the company's Essaouira and Foum Assaka blocks. Kosmos will operate Tarhazoute with a 100% working interest and will initially reprocess 2D seismic. The reconnaissance contract has a 1-year term, after which the company has the right to enter into a petroleum agreement for the acreage.

Kosmos noted that it has licensed the large majority of the Agadir basin petroleum system and is shooting 3D seismic beginning in the Essaouira block.

New Zealand

New Zealand Energy Corp., Vancouver, BC, reported a flowing production rate of 580 b/d of 41.8° gravity oil and 970 scf/bbl of associated gas at Copper Moki-1, its first well in New Zealand's Taranaki basin.

Surface facilities will handle as much as 1,000 bo/d. The company will install permanent facilities by midyear that can be expanded to handle output from more wells. Produced oil is being trucked to the Shell-operated Omata tank farm 45 km north. NZEC is evaluating gas market options.

NZEC planned to spud the Copper Moki-2 delineation well by yearend 2011 from the same pad as Copper Moki-1 to target the Urenui and Mount Messenger formations. It plans to spud Copper Moki-3 on completion of Copper Moki-2 and will target the Mount Messenger, Urenui, and Moki formations.

Poland

A unit of Talisman Energy Inc. has spud the Rogity-1 well on the Braniewo S concession in the Baltic basin in Poland.

The well targets unconventional shale gas in formations of Lower Silurian, Ordovician, and Upper Cambrian age. It is the second in a three-well program in the basin.

One more well is to be drilled on the Szczawno concession in early 2012. Rogity-1 will be the easternmost penetration of the Paleozoic section in the Baltic basin, said participant San Leon Energy PLC.

This area is believed to be less thermally mature and is considered to carry more risk than the western part of the basin, but San Leon believes it has the potential for a more liquids-rich production.

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