Colombia
The government approved an exploration and production concession with a unit of Harken Energy Corp., Dallas, covering the Luna Llena contract area in the Llanos basin.
Harken’s Global Energy Development PLC will operate 369,000 acres carved from the 2.1 million acre Valle Lunar technical evaluation agreement signed in May 2005. The TEA gives Global Energy the option to convert any of the acreage into a contract or contracts until the TEA expires in October 2006.
Two international oil companies drilled several shallow wells in the 1980s to 3,000 ft that delineated what is now called El Miedo field. Oil production tests were successful but the opportunity was then deemed noncommercial due to low oil prices, Harken said.
Global Energy has completed engineering and geologic studies on El Miedo field and conducted Landsat analysis of the acreage. It plans to drill new wells at El Miedo in the second half of 2006.
The contract has a 6-year exploration period and 24-year exploitation and production period. Within 18 months it must acquire 165 line-km of 2D seismic data, reprocess 500 km, reenter and test 1 well, and drill 2 exploratory wells that penetrate the entire geologic column. Later phases call for more operations. Global Energy is still evaluating other parts of the TEA acreage.
Paraguay
CDS Oil & Gas Group PLC, London, spudded its first well Nov. 25 on the Gabino Mendoza block in the Chaco basin.
The CDS-GM-05-5001 well is 200 m southeast of the 1993 Independencia-1 well that was a reentry of the Mendoza-1R well drilled by Pure Oil in 1959.
The new well is to go to 1,600 m to evaluate Carboniferous and Devonian sediments. Primary objective is an oil-bearing zone at 1,500-1,600 m identified by CDS through its interpretation of seismic data and logs from earlier wells. Below 1,600 m might lie a large gas play that CDS may drill later.
CDS tested Independencia-1 in March 2004 at 960 Mcfd of dry, sulfur-free gas on a 22⁄64-in. choke from a Carboniferous sand at 600 m.
Uganda
Hardman Resources Ltd., Perth, plans to spud a wildcat in mid-December 2005 on Block 2.
Mputa-1 will target a structural prospect with potential multiple objectives to projected total depth of 1,100 m. Oil seeps lie in the immediate area, and 2005 seismic data defined the prospect, Hardman said. Hardman, operator, and Tullow Oil PLC, London, each hold 50% interest in Block 2.
Vietnam
High pressures forced Hoan Vu Joint Operating Co. to suspend an appraisal well on Block 9-2 in the South China Sea, said SOCO International PLC, London.
The CNV-4X well on the Ca Ngu Vang structure encountered unexpected pressures in the Oligocene E sandstone sequence that were much higher than those seen at other CNV wells.
CNV-4X “is only the second location in the Cuu Long basin that has encountered such good oil and gas shows in the E Sequence sandstones,” SOCO said. “This adds significant remaining exploration potential to Block 9-2 as the Oligocene section has been identified and mapped over other prospects on the block.”
The well penetrated a gross 370-m vertical section of oil shows with gas in Oligocene E based on mud logs, drill cuttings analysis, and LWD logs. With the use of higher than anticipated mud weights, the drill string stuck in 121⁄4-in. open hole above the granitic basement reservoir while pulling out of the hole to run casing. Numerous fishing attempts failed.
The joint venture will move the rig to drill an appraisal well near the TGT-1X discovery on Block 16-1 before returning it to Block 9-2 to redrill the lost hole section using a different drilling fluid and casing design (OGJ Online, Aug. 24, 2005).
Alberta
Production started from a coalbed methane project in the Drumheller area of Alberta.
The first 30 CBM wells tied in are averaging 100 Mcfd/well from Horseshoe Canyon coals, said Canadian Superior Energy Inc., Calgary, which holds 30% working interest. Fifty total wells are to be hooked up by the end of 2005.
Canadian Superior has high working interests in 89,600 acres of land at Drumheller and 12,800 acres in the Wildunn area, all with CBM potential.
The company also plans more drilling near a 100% owned conventional gas discovery at Drumheller that is tied in and expected to average 2 MMcfd.
Colorado
Lexam Explorations Inc., Toronto, began evaluating raw 2D seismic data that a former partner acquired in 2004 on its 100,000+ acre block in the San Luis basin.
Lexam has retained geological and engineering consultants to conduct a technical study in hopes of advancing exploration in the area in Saguache and Alamosa counties north of Alamosa (see map, OGJ, Sept. 1, 1997, p. 78).
Petro-Hunt LLC, Dallas, acquired the data on the Baca Project but later decided not to pursue exploration there.
Ohio
Harken Energy Corp.’s Gulf Energy Management Co. unit signed a third agreement to explore and develop coalbed methane, in Ohio.
Gulf Energy is to purchase from Ohio Triangle LP a 65% nonoperating working interest in CBM acreage and drill three core holes spudding by the end of March 2006. If results are favorable, Gulf Energy has the option to purchase 20,000 acres of coal rights and start a pilot program.
It then has the option to develop by paying 100% of costs up to $7.5 million.
Meanwhile, Gulf Energy and Ute Energy, its partner in the first two CBM projects, drilled three core holes on the Ohio prospect area and four in Indiana. Gulf Energy elected to fund Phase 2 of the Indiana agreement and plans to drill the first five pilot wells in the first 3 months of 2006. Core samples of the Ohio prospect are being analyzed.
Texas
Gulf Coast
Lighthouse Exploration Inc., private Corpus Christi independent, plans to attempt completion at an exploratory test in Jim Hogg County, said Houston American Energy Corp., Houston, which holds 4.375% working interest in the well and prospect.
The Weil 1 well on the 500-acre Hogg Heaven prospect went to TD 6,200 ft. Logs and sidewall cores indicated gas pay in four sands for a total of 34 ft of net pay. The shows are in the Eocene Pettus and Yegua sections.