Area Drilling

Feb. 23, 2004
Santos Ltd. was drilling an exploratory well on the Sampang production sharing contract in the East Java basin 40 km southeast of Surabaya.

Indonesia

Santos Ltd. was drilling an exploratory well on the Sampang production sharing contract in the East Java basin 40 km southeast of Surabaya.

Jeruk 1, in the Madura Strait, is projected to a TD of 5,172 m. Santos and PT Medco Sampang each hold 50% interests in the block.

The drillsite is 35 km west-southwest of Oyong field, also on the Sampang PSC. Various estimates of Oyong field reserves are 5 million to 13 million bbl of oil and 90-135 bcf of gas. The gas is to start flowing in late 2004 under a contract signed last year, and the oil will be produced as a separate project.

Tunisia

Tunisian independent HBS Oil Co. completed an oil discovery on Djerba Island in the Gulf of Gabes.

Mazrane-1 on the Nord Medenine permit flowed 600 b/d of 38° gravity oil from Lower Cretaceous Meloussi sandstones. TD is 2,401 m.

The operator is considering rapid development, new seismic acquisition, and updip drilling, said Tunisia's state ETAP.

Yemen

Nexen Inc., Calgary, said it plans to develop more than 60 million bbl of proved and probable reserves on Block 51 and add 20,000-25,000 b/d of production capacity there in early 2005, based on drilling results to date.

Nexen is developing Tammum field on the block. It has drilled 8 wells and is designing a central processing facility, gathering system, and tieback to the Masila export system.

Tammum-8, 2 km west of the discovery well, cut 24 ft of net pay.

The company is interpreting 3D seismic data and plans more delineation drilling in 2004. It plans more seismic and 6 exploration wells this year.

Tammum development will enable Nexen to maintain its production rates in Yemen for several more years.

Arizona

Clayton Williams Energy Inc., Midland, Tex., said it drilled a nonproductive exploratory well in Coconino County.

The Babbitt 1 well, in 15-27n-9e, 42 miles north of Flagstaff, went to TD 4,350 ft. It was permitted to 7,000 ft.

A geologic prognosis for the Gray Mountain prospect listed principle targets as the Cambrian Tapeats sandstone, Precambrian Carbon Butte sandstone, and limes and dolomites of the Walcott member of the Precambrian Chuar Group, all lying at 3,500-5,800 ft.

Colorado

Cedar Ridge LLC, Durango, Colo., and Dover Petroleum Corp., Toronto, are pursuing a coalbed methane project in the Sand Wash basin.

Dover said it owns an average 40% net interest in 50 sq miles of the Slater Dome project in Moffat and Routt counties, Colo., and Carbon County, Wyo., where Cedar Ridge is the operator.

Eight wells in the project area encountered coalbed methane, and one was tested at a rate of 1.5 MMcfd. At least three wells appear capable of economic production, Dover said. The coals are understood to be in the Cretaceous Williams Fork and Illes formations.

Substantial additional investment is needed to place the project on production, including a 6 in., 18 mile, 16 MMcfd gas pipeline.

The project area is centered 45 miles north-northeast of Craig, Colo.

Texas

Southwest

The Exploration Co., San Antonio, said several wells showed notable gas production increases in late 2003 from the state's first coalbed methane project.

Thirty-six wells were producing a combined 208 Mcfd of gas and 1,837 b/d of water as of Dec. 31, 2003, from Cretaceous Olmos coals. That compared with 165 Mcfd and 1,319 b/d as of Sept. 30, 2003.

The company's pilot project is in Maverick County just south of Sacatosa oil field. A typical well costs $150,000.

The high-volatile bituminous coals, lying 100-2,200 ft deep on more than 250,000 acres of the company's lease block, has gas content of as much as 350 scf/ton.

The company said it believes the CBM project will result in significant reserve and production growth in the future. Most coals in Texas are lignites.