Area Drilling

Aug. 19, 2002
Aviva Petroleum Inc., Dallas, plans to spud an exploratory well in the Putumayo basin in fourth quarter 2002.

Colombia

Aviva Petroleum Inc., Dallas, plans to spud an exploratory well in the Putumayo basin in fourth quarter 2002.

Schlumberger Surenco SA is to participate, by providing services and materials, in drilling Inchiyaco-1 on the former Mary East prospect to 8,100 ft. The well will test several formations that produce on the Mary structure and elsewhere in the basin.

Aviva's 30% owned Argosy Energy International operating unit estimated that new license terms will apply to 170-230 million bbl of potentially recoverable oil, 60-90 million bbl of which is represented by 5 currently defined prospects (OGJ Online, Aug. 7, 2002).

Russia

OAO Sibneft, Moscow, laid a 104-km pipeline to deliver gas from West Ozyornoye field to a power station at Anadyr in the Russian Far East.

The company completed the first of four wells to be drilled in the field in the Chukotka autonomous district (see map, OGJ, Aug. 27, 2001, p. 27).

West Ozyornoye is to produce 120 million cu m/year from 6 bcm of reserves. It is the first pure gas field to be developed by Sibneft, which plans to beef up the gas side of its business. It is studying a range of projects to deliver pipeline gas and LNG and assessing gas processing opportunities.

Sibneft had 40.8 bcm of proved gas reserves and 28.1 bcm of probable and possible gas reserves at the start of 2002, as audited by Miller & Lents Ltd., Houston.

Alaska

The state Division of Oil & Gas will open bids Oct. 23, 2002, in Anchorage in connection with North Slope Area-wide and Beaufort Sea Areawide competitive sales of 7-year oil and gas leases.

The North Slope sale involves 1,225 tracts totaling 5.1 million acres in parcels of 640-5,760 acres each. The tracts lie between the Arctic National Wildlife Refuge and the National Petroleum Reserve-Alaska.

The Beaufort Sea sale includes 1.5 million acres of tide and submerged lands from Barter Island off ANWR to Tangent Point off NPR-A. The 516 tracts range in size from 40 to 5,760 acres.

Appalachia

Penn Virginia Corp., Radnor, Pa., and CDX Gas LLC, Dallas, will explore for and develop coalbed methane and Devonian shale potential on a 16,000 sq mile area of mutual interest in an unspecified area or areas of Central Appalachia.

This is an area two-thirds the size of the state of West Virginia.

Penn Virginia said the program combines its proven CBM operating capability with the exclusive use of CDX-developed proprietary horizontal drilling technology. The 5-year agreement permits either party to propose wells. Working interests will be PVA 60% and CDX 40%. Penn Virginia will become operator when a successful project goes on production.

On future AMI projects conducted on property not currently owned by Penn Virginia, 50-50 working interest will generally apply.

A horizontal well drilled in late 2001 with CDX continues at 2.9 MMcfd of CBM. Vertical Appalachian CBM wells typically flow 50-100 Mcfd. The first offset pattern to this well is being drilled. At least one other pattern is planned this year.

CDX and affiliates are developing CBM projects in nine states and two Canadian provinces.

Texas

West - Vintage Petroleum Inc., Tulsa, plans to start a multiwell drilling program in fourth quarter 2002 aimed at gas in low-permeability Devonian carbonates in the Val Verde basin (OGJ, Feb. 11, 2002, p. 40).

The company leased more than 3,900 acres in an unspecified area and will use horizontal drilling and fracturing technology in the low-risk play. It is pursuing the possibility of a joint venture that would expose it to a larger area, but at a lower working interest.