New Zealand
L&M Petroleum Ltd., Wellington, NZ, took a farmout on PEP 38521 in the Westland basin of New Zealand’s nonproducing South Island.
The 336 sq km block contains the Fireball Creek and Pounamu prospects and several leads.
L&M will be appointed operator and will earn 32.5% interest by funding 65% of the cost to drill a well to no more than 500 m to test the Fireball Creek Prospect. Two nearby wells drilled in the 1940s blew out while drilling and flowed gas (OGJ Online, Feb. 28, 2006).
The agreement gives L&M an option to increase its equity to 48.75% in exchange for funding the farmor’s share of the cost of undertaking unspecified exploration before March 2009.
Block interests after the farmout are L&M 32.5%, Pacrim Energy Ltd. 35%, and McKenzie Petroleum Ltd., E.F. Durkee & Associates, Gallagher Research & Development Co., and Labrador Energy Inc. 8.125% each.
Philippines
A group led by PearlOil (Ragay) Ltd. plans to spud a wildcat in December 2007 on the Monte Cristo Reef prospect in the offshore 10,800 sq km SC 43 block in the Southeast Luzon basin southeast of Manila.
The well will be deviated from a land location to a projected TD of 2,255 m.
PearlOil, a subsidiary of Aabar Petroleum Investments Co. PJSC of Abu Dhabi, became operator of the Ragay Gulf service contract earlier this month with 64% interest. Premier has 21%, and PNOC Exploration Corp. has 15%.
Pearl is to carry Premier’s costs for the well, which targets oil in the Oligo-Miocene Panaon limestone. Little offshore exploration has occurred in the area despite available data that show several interesting trap types and a working hydrocarbon system, said Premier, which acquired the acreage several years ago (OGJ Online, Jan. 14, 2004).
PNOC said the contract area has numerous prospects in 50-150 m of water within 20 km of shore.
Illinois
BPI Energy Inc., Cleveland, said it sold 185.3 MMcf of coalbed methane from its Illinois basin properties in the fiscal year ended July 31, up 37% on the year.
The company has completed and tied in 30 wells in addition to the 91 that were producing gas as of July 31, when it reported reserves of 16.2 bcf.
The typical well at the company’s 10,000-acre Delta field in Saline County, Ill., costs $186,000 for 185 MMcf of gross reserves. The coals are less than 500 ft deep. The received gas price fell 22% to $6.50/Mcf in the fiscal year ended July 31.
Installation of a new compressor at Delta increased capacity to 1.5 MMcfd. At the end of October 2007 production was 900 Mcfd and sales were 750 Mcfd.
The company also has a 10-well pilot in Macoupin County.
BPI Energy, with 512,000 acres, controls the dominant acreage position in the 60,000 sq mile Illinois basin.
