Area Drilling

Nov. 17, 2003
The energy ministry, looking toward a 2004 bidding round in the Northland offshore basin, laid plans to produce a substantial data package on the basin.

New Zealand

The energy ministry, looking toward a 2004 bidding round in the Northland offshore basin, laid plans to produce a substantial data package on the basin.

The ministry's Crown Minerals Group, the Institute of Geological & Nuclear Sciences, and Spectrum Energy & Information Technology, Woking, UK, will reprocess and interpret 9,100 line km of seismic data initially acquired in the 1980s-90s.

"Initial interpretation from Wakanui-1 showed that the Wakanui structure is not buried by marine Cretaceous rocks as previously believed. The presence of a Middle Jurassic coal measure succession strongly suggests the presence of a new previously unsuspected petroleum system," the ministry said.

"Seismic data suggests that the depocentre to the east of the Wakanui structure contains both Jurassic and Cretaceous source rocks, and thermal modeling suggests that they are buried deep enough to be generating and expelling hydrocarbons."

The ministry is still drawing permit boundaries for the round, which will cover areas just north of the Taranaki basin.

China

Husky Energy Inc., Calgary, marked its entry into the East China Sea by signing a petroleum contract to explore Block 04/35 with China National Offshore Oil Corp.

The block covers 4,835 sq km in an average 100 m of water 350 km east of Shanghai and almost the same distance north of producing Pinghu gas-condensate field. A single exploration well to 2,500 m depth is required in the first 3 years of the contract.

Meanwhile, in the South China Sea, Husky said drilling is expected in early 2004 in 600 m of water on Block 40/30 and in first half 2004 on Block 23/15, where it completed a 1,000 sq km 3D seismic survey.

New Brunswick

Corridor Resources Inc., Halifax, is acquiring 30 sq km of 3D seismic data over McCully gas field in south-central New Brunswick at a cost of $1.35 million (Can.).

Corridor also applied to conduct a 2D seismic survey in the Gulf of St. Lawrence off Nova Scotia.

The McCully A-67 and P-66 wells began producing in April, and Corridor looks forward to drilling two delineation wells in the northern part of the field this winter. The next step would be to drill 10 production wells in the next 2 years to develop enough reserves and production capacity to deliver gas to the Maritimes & Northeast Pipeline.

Meanwhile, Corridor sought approval from the Canada-Nova Scotia Offshore Petroleum Board to acquire 500 km of 2D data over the Cheticamp prospect off western Cape Breton. Acquisition would take 6 days in good weather.

Geophysical Service Inc. will acquire the data using the GSI Admiral operating out of the Canso Strait.

California

Exploratory drilling has returned to the Eel River basin of coastal northern California.

Forexco Inc. spudded the 3-1 Christiansen, in 16-2n-1w, Humboldt County, earlier this month.

A directional hole, it is projected to an undisclosed depth in a previously drilled area known as Grizzly Bluff about 20 miles south of Eureka, Calif. The drill site is 41/2 miles south of Tompkins Hill gas field.

The lightly explored Eel River basin, mostly offshore, is believed to have gas and possibly oil potential (OGJ, Dec. 14, 1987, p. 55).

Mississippi

Kerr-McGee Corp., Oklahoma City, received a permit to drill a 14,000-ft stratigraphic test to basement in the Black Warrior basin.

The 1 HP, in 30-15s-18w, Monroe County, spots 17 miles north of Columbus, Miss., reports Southeastern Oil Review, Jackson, Miss.

This is just south of McKinley Creek oil and gas field, discovered in 1973, and 36 miles northeast of gas production from Ordovician Knox at 14,000-15,000 ft in Maben field, Oktibbeha County.

Kerr-McGee said the well is part of a waste management program that relates to its titanium dioxide pigment plant in the area.

Texas

Gulf Coast

Anadarko Petroleum Corp., Houston, completed two 100%-owned wells in northern Giddings field with more than 20,000 ft of laterals per well.

The company is exploiting the Cretaceous Austin chalk, Buda, and Georgetown formations in the general area.

Anadarko drilled four downdip laterals at the 1 Rio Brazos, in Brazos County, which tested 842 b/d of oil and 200 Mcfd of gas from the Buda and Georgetown.

The 1 Runge Unit, in Milam County, had three downdip and two updip laterals and tested 716 b/d from the Buda.

The Austin chalk zone has yet to be brought on line in either well.

TK Petrosearch LLC, Houston, plans to spud a third well in December 2003 at Blue Ridge field south of Houston in eastern Fort Bend County to target multiple Frio and Miocene pays as deep as 5,000 ft.

The company's just-completed second well, West & Schenck B-23, flowed 178 b/d of oil without water on a 12/64-in. choke with 600 psi FTP from 10 ft of Upper Frio pay at 3,118 ft. TK Petrosearch's working interest is 70%.

The first well, B-22, also produced more than 100 b/d. The field dates to 1919.

South

Plains Exploration & Production Co., Houston, signed an agreement with Metano Energy LP, San Antonio, to increase Plains' exposure to quality exploration opportunities in Texas.

Metano, formed by key personnel formerly with EEX Onshore, will interpret and develop defined drilling prospects on twelve 3D seismic areas in nine counties of South Texas.

PXP will have the option of operating with a 55% working interest in any prospect developed.

Virginia

Consol Energy Inc., Pittsburgh, hiked its gas production in the quarter ended Sept. 30, and it expects another increase in the fourth quarter.

Reporting that it averaged 137 MMcfd, mostly from coal beds in Southwest Virginia, the company said it has the ability to "grow the gas business for a number of years at very low risk."

Consol signed an agreement in late July with Triana Energy Inc., Charleston, W.Va., to jointly explore for and produce gas on 138,000 acres in Southwest Virginia.

Consol said the agreement represents "a unique opportunity to exploit synergies between our established coalbed methane operations in southwest Virginia and the conventional gas resource below it."

Consol produces CBM from the Pocahontas No. 3 and associated coal seams.

The agreement covers conventional gas that may reside in deeper formations. Consol is operator, and Triana will handle geological evaluation, drilling, and completion of all wells.

Triana acquired Columbia Natural Resources Inc. from NiSource Inc. this year, making it one of the Appalachian basin's largest production companies.

Consol lately began coalbed methane production in Pennsylvania and West Virginia and has a joint venture company producing gas and oil in Tennessee.