New York Herkimer sand gas play to expand

Feb. 15, 2010
Norse Energy Corp. ASA, Oslo, has identified 300 locations on seismic that could be prospective for gas in fractured Silurian Herkimer sandstone in central New York state.

Norse Energy Corp. ASA, Oslo, has identified 300 locations on seismic that could be prospective for gas in fractured Silurian Herkimer sandstone in central New York state.

The total play could ultimately recover 500 bcf of gas, the company said.

Norse Energy expects to drill 30 horizontal Herkimer wells in 2010 to double its yearend 2009 production to 24 MMcfd by the end of the year. Several wells await connection in early 2010 to a gathering system in Chenango County near Norwich (OGJ Online, Oct. 13, 2008).

Norse Energy, which has been drilling in New York since 1996, holds 180,000 acres leases of which 130,000 it judges to have potential in Ordovician Utica shale and Devonian Marcellus shale. The leases are in Broome, Chenango, Madison, and Otsego counties.

The New York State Department of Environmental Conservation is formulating regulations that would govern horizontal drilling and hydraulic fracturing in shale formations (OGJ Online, Jan. 25, 2010). Horizontal shale drilling isn't permitted, and frac jobs in vertical wells are limited to 80,000 gal in the state.

Egypt

Shell Egypt NV completed a low frequency seismic survey in the Egypt's Northeast Abu Gharadig basin.

The survey objective was to introduce LF technology in the Western Desert, said Spectraseis, Zurich, Switzerland. The project is the largest LF seismic synchronous survey, with 110 data points recorded in 4 days. The survey data are being processed. Initial results are expected in early February 2010.

The project took place with logistical support from Ardiseis, a regional joint venture between CGGVeritas and TAQA in the Middle East region, and covered 60 sq km in 1 week using 17 crew.

The survey used the numerical technique of time reverse imaging, which spatially localizes the source of hydrocarbon microtremors by feeding measured signals to the velocity signal, thus numerically estimating the depth origin of spectral anomalies. The result is a subsurface image that suggests the hydrocarbon reservoirs at depth.

Georgia

Frontera Resources Corp., Houston, drilled new wells in Mirzaani and Mtsare Khevi fields in the shallow fields production unit on 5,060 sq km Block 12 in eastern Georgia.

Mirzanni-1 and 5, TD 1,500 m and 1,125 m, respectively, in undeveloped and underdeveloped parts of the field, had oil and gas shows in 120-146 m of net sandstones with higher than expected porosity and permeability.

The wells indicate that zones 12 and 13 will be the primary targets for forward development and zones 14-18 in the Lower Pliocene Shiraki formation will be a bonus if present. Tests are pending.

Four new wells in Mtsare Khevi bring to 18 the number of development wells drilled since August 2008. The wells tap oil in low-recovery zones I and II and gas in Zone III, all from Upper Pliocene Akchagil reservoirs at 200-350 m.

The shallow fields unit is producing 200 b/d of oil, and a 12 km pipeline with capacity for 3.5 MMcfd of gas is expected to be operating by Mar. 31.

Indonesia

A group led by PT Medco Energi Internasional Tbk plans to spud a second coalbed methane well on the Sekayu block in South Sumatra in March 2010.

The new location, to be drilled below 1,500 ft, is 18 km south of the first well, CBM-SE-02. Two coals at 1,074-82 ft sampled in the first well analyzed at 75-85 scf/ton of methane storage capacity and 500 md of permeability, and more samples are being analyzed.

Partners in the venture with Medco are Ephindo Ilthabi CBM Holdings Inc., Batavia Energy Inc., and CBM Asia Development Corp. CBM Asia also has an 18% net working interest in a PSC for CBM on a 76,000-ha block and a 40% net working interest in a 56,500-ha block in the Kutei basin of East Kalimantan.

Uganda

The Neptune Petroleum (Uganda) Ltd. unit of Tower Resources PLC, London, plans to spud the Avivi-1 exploration well in Uganda's Block 5 in the second week in February 2010.

The rig will move to Avivi-1 from Tullow Oil PLC's Kasamene-2 well. The Avivi-1 well site is 94 km north of Kasamene- 2, but the road route for transporting the rig is 525 km.

Pennsylvania

Chesapeake Energy Corp. completed taking a farmout from Epsilon Energy Ltd., Concord, Ont., on 11,500 net acres of leasehold in the Highway 706 project in Susquehanna County, Pa.

The assets include the acreage, 10 MMcfd of gas production, and related compression, pipeline, and tap site facilities (OGJ Online, Feb. 26, 2009). Epsilon believes the leasehold will support the drilling of 120-150 wells, or 60-75 net to Epsilon.

Chesapeake paid $5 million at closing and will earn a 50% interest in Epsilon's upstream Marcellus shale assets by paying a further $95 million over time by carrying the first $95 million of Epsilon's 50% share of leasehold, drilling, completing, equipping, and gathering costs attributable to the prospect. The carry obligation is expected to be completed by Aug. 1, 2012.

In the framework of the farmout, Chesapeake plans to spend a total of $195 million developing the Highway 706 prospect. Epsilon said Chesapeake's expertise will help it maximize return on the Pennsylvania assets while freeing up resources to concentrate on Epsilon's New York Marcellus shale prospect.

Chesapeake said it expects average estimated ultimate recoveries to be substantially greater than those found on average in the Marcellus.

Anadarko Petroleum Corp. spud seven operated horizontal wells and completed four operated horizontal wells in the 2009 fourth quarter in Pennsylvania in the Marcellus shale play, where it has interests in more than 630,000 acres.

The company's two most recent flow tests each exhibited sustained test rates in excess of 7 MMcfd with 3,000 psi of flowing tubing pressure. Anadarko operates three rigs and participates in 11 nonoperated rigs and expects to increase both counts throughout 2010.

Texas

Gulf Coast

Magnum Hunter Resources Corp., Houston, said it believes at least two more locations can be drilled on acreage in Bee County, Tex., following completion of its Eberstadt-1 well in South Caesar field.

Eberstadt-1 flowed to sales on Feb. 1 at the rate of 1.5 MMcfd of gas with 3,600 psi flowing tubing pressure on a 12⁄64-in. choke from 100 gross ft of Middle Wilcox. TD is 10,600 ft. The well was still cleaning up after a Jan. 28 frac.

Magnum Hunter is operator with 51.1% working interest and 38.3% net revenue interest. The well sets up a 464-acre gas unit out of 950 acres under lease. Completed well cost was $2 million to the 100% working interest.

Utah

Golden State Resources Ltd., Perth, has spud a third exploratory well since 2006 in the northern Paradox basin in southeastern Utah.

The Paradox Basin-3 well, in 16-23s-23e, Grand County, targets the Upper Ismay zone of Pennsylvanian Paradox above 10,000 ft, which demonstrated gas flow capacity as high as 3.6 MMcfd in the first two wells. A Williams Cos. gas pipeline comes within 6 miles of the Paradox Basin-2 well.

The three wells are in 21 and 16-23s-23e, two townships south of the Cisco Springs area. Consulting engineers offered low estimates of 9 bscf of gas in place in Ismay and 6.2 bcf in Pennsylvanian Barker Creek, and the company has dubbed the area Golden Eagle gas field.

Objectives in the deeper Pennsylvanian section such as the Barker Creek, Alkali Gulch, and Akah formations were intersected close to the bounding fault and are potentially isolated from the main structure. The first two wells bottomed at 16,471 ft and 14,216 ft.

Golden State holds 100% working interest. Eclipse Exploration Inc., Denver, has the right to back in with a 16.67% working interest.

The Golden Eagle structure lies along the Paradox fold and fault belt and is on structural trend with Big Indian, Lisbon, Lightning Draw, Little Valley, and Lisbon South fields.

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