Apache Corp., Houston, reported progress in its operations in Argentina, where it has positions in the Neuquen, Austral, and Cuyo basins.
Argentina, where 72 of the 83 wells Apache drilled in 2008 were productive, holds 5% of the company’s net proved reserves and 9% of its production. Net production averaged 47,600 boe/d in the quarter ended Mar. 31, down 4% from the last quarter of 2008 even though liquids output didn’t decline.
In the Neuquen basin, Apache finalized the extension of eight federal development blocks that cover 590,000 acres and produce 7,000 b/d of oil and 100 MMcfd of gas. The government extended the lease 10 years to 2027. Apache has a capital commitment of $320 million on the lease.
Apache drilled nine wells in Ranquil and Guanaco deep gas fields that tested 3-7 MMcfd/well in the quarter ended Mar. 31.
In the Austral basin, Apache plans to drill two development wells near its Bajo Guadaloso X-2001 discovery, which tested 2.4 MMcfd of gas and 300 b/d of oil. The 2-km feature is a look-alike to several structures identified on a 2,500 sq km 3D seismic survey shot in 2008.
Apache is operator with 70% working interest in San Sebastian field, the newly discovered Seccion Veintinueve field, and an extension to Sara Norte field.
Meanwhile, Apache plans to shoot two large 3D surveys once permitting is completed in mid-2010 in the Cuyo basin, where it was awarded more than 1 million sparsely drilled, nonproducing net acres that surround 22 of Argentina’s largest oil fields.
The CCyB Block 17B in Mendoza Province is next to and on trend with several fields and hasn’t been explored with 3D seismic. It is the company’s first acreage in the basin.
Guatemala
The PetroLatina subsidiary of Quetzal Energy Ltd., Toronto, is redeveloping the A7-2005 license that contains Atzam and Tortugas fields in Guatemala’s southern Peten (Chapayal) basin.
It plans to drill three development wells at Atzam and six in Tortugas.
PetroLatina has spud the Atzam-3 well in Guatemala’s Atzam oil and gas field in License A7-2005 in the southern Peten (Chapayal) basin.
Projected depth is 4,200 ft at the well, 500 m east of the productive Atzam-2 well. Quetzal chose the location to gain a structural advantage to Atzam-2 at the productive Coban C-18 and C-19 intervals.
Basic Petroleum (Bahamas) Ltd. drilled Atzam-2 in 1993. The reworked Atzam-2 has produced 102,168 bbl of 34° gravity oil from March 2008 until May 31, 2009. Previous operators produced 90,000 bbl before the well watered out.
PetroLatina also completed Atzam-1A as a water disposal well for a savings of $18,000/month.
Mexico
Mexico’s state-run Petroleos Mexicanos plans to start oil and gas production in 2010 from small Kambesah field in Campeche Sound, press reports said.
Reserves weren’t specified, but output is expected to peak at 13,700 b/d of oil and 9.3 MMcfd of gas. Kambesah, near Ixtoc field, was discovered in late 2008.
Zambia
Zambia launched its debut oil licensing round for 23 blocks in the northwest, west, and eastern provinces of the country. Bids are to be opened Aug. 7.
Godwin Beene, permanent secretary for the ministry of mines and minerals development, said winning operators will need to show they have the cash, assets, technical expertise, and equipment to explore and produce. Winners will be required to pay a nonrefundable $10,000 bidding fee.
Traces of oil have been found in areas that border Angola, Zambian authorities said.
Canadian Beaufort
BP Exploration Co. Ltd. has proposed to shoot 1,800-2,300 sq km of 3D seismic surveys in the Canadian Beaufort Sea in mid-2009.
The Pokak air gun program is to be shot in 70-1,050 m of water on EL 449 and EL 451 about 180 km off the coast from late July to October. The vessel would return in 2010 if it could not complete the program in the 2009 open water season.
Geologic depths of interest are at 4-8 km, BP said in a filing with Canada’s National Energy Board.
Kentucky
Kentucky USA Energy Inc., London, Ky., plans to negotiate and sign within 30 days a contract with Seminole Energy Services LLC, Tulsa, for purchase of Kentucky USA’s gas production in western Kentucky.
Kentucky USA, which operates in the Devonian New Albany shale gas play, has an existing sales contract with Atmos Energy Marketing LLC. Kentucky USA said it has laid and tested more than 45,000 ft of pipe in the company’s gathering system.
Seminole Energy supplies 900 MMcfd of gas to more than 30,000 customers.
Texas
South
Abraxas Petroleum Corp., San Antonio, improved production from a horizontal Cretaceous Edwards well in DeWitt County, Tex., with a six-stage frac.
The company has also identified three more locations on existing leasehold.
Nordheim-2H came on line in January 2009 at 6 MMcfd, natural, from the first section of the lateral and was choked back to 3 MMcfd.
After the six-stage frac, the well is capable of more than 10 MMcfd, exceeding expectations. It is restricted to 4.6 MMcfd due to low gas prices.
Abraxas is operator with 75% working interest.
