Exploration/Development Briefs

Madalena Ventures Inc., Calgary, said its Argentina subsidiary is drilling to test numerous formations on its various blocks in the Neuquen basin in Argentina.

The Yapai X-1001 well on the Curamhuele block went to 10,743 ft measured total depth, 10,478 ft true vertical depth, and penetrated the Cretaceous Lower Troncoso and Avile formations. Logs indicate a potential gross hydrocarbon column of 23 ft in Lower Troncoso at 4,394 ft TVD and multiple stacked Avile formations from 6,530 ft to 10,360 ft TVD.

Madalena Austral SA will set 7-in. casing to TD and test several Avile sands and the Lower Troncoso formation in this year's third quarter. Two earlier wells, Curamhuele X-1 and Yapai X-1, have been drilled into the Cretaceous Mulichinco tight sand formation and will be reviewed for potential reentry to test the Cretaceous-Jurassic Vaca Muerta shale formation.

Testing of CAS X-1 on the Coiron Amargo block is delayed due to poor cement across the Jurassic Sierras Blancas formation. After remedial cement jobs, the well tested as much as 150 b/d of oil from Sierras Blancas, natural. Madalena plans to frac before perforating and testing the Vaca Muerta formation. Later, the company will test the CAN X-4 well in the northern part of the block.

The CorS X-1 well, targeting the Cretaceous Quintuco, Mulichinco, Vaca Muerta shale, and Upper Jurassic Tordillo tight sand formations on the Cortadera block, is drilling at 4,500 ft and is to reach total depth in late July or early August.

Mitsui E&P Australia Pty. Ltd. has signed farmouts to acquire a 49% interest from WestSide Corp. Ltd. in ATP 974P and ATP 978P in the Galilee basin of Queensland, Australia.

Westside as operator expects to start exploratory drilling this year on the tenements, which cover a combined 14,480 sq km of frontier coal seam gas territory with an estimated 21 tcf of gas in place. Mitsui is to pay $1.6 million (Aus.) to reimburse 49% of WestSide's costs to date following ministerial approval of the change in tenement interests.

WestSide said the ownership structure of the new joint venture aligns with the company's existing Meridian SeamGas joint venture with Mitsui at Moura in Queensland's Bowen basin. Meridian produces 4 pj/year of gas.

Rodinia Oil Corp. has spud the Mulyawara-1 wildcat in the Officer basin of South Australia.

The drillsite is in the northwest corner of PEL 253 on a 36.3 sq km structure identified on seven 2D seismic lines. The well will be drilled vertically to an estimated 2,700 m to test five prospective reservoir horizons: Murnaroo, Talina, Mundallio, Emeroo, and Pindyin, the deepest of which is the aeolian Pindyin sandstone, also called the subsalt unit.

Rodinia's drilling contract with Ensign International Energy Services includes four firm wells with the option for as many as four additional wells in the basin. Rodinia''s second drilling location, Kutjara-1, has recently been high-graded and reconfirmed by additional 2D seismic lines. Kutjara-1 is in the west-central part of PEL 253 some 35 km southeast of Mulyawara-1.

Rodinia has an 80% working interest in Mulyawara-1 and the prospect and is the operator. Drilling is to take 6-8 weeks.

Brazil's ANP has granted HRT Oil & Gas a 2-year extension to Mar. 3, 2013, of the first exploratory period for the SOL-T-219 and SOL-T-220 blocks in the Solimoes basin in northwestern Brazil.

The deadline for the exploration phase covering the first and second periods will be extended to Mar. 3, 2015.

HRT has contracted four heliportable drilling rigs. The first exploratory well, 1-HRT-170/01-AM, was spud on Apr. 21 and is at 1,330 m. The drilling schedule calls for 1-HRT-169/01-AM to spud June 17, 1-HRT-168/01-AM on June 25, and 1-HRT-194/01-AM on July 15.

Nine new heliportable rigs rated to 3,500-5,000 m will be contracted this year to continue with the exploratory process. HRT is evaluating bids, and the rigs are expected to arrive in Brazil late this year. One of the drilling rigs, which will be leased, will be used to perform workovers as deep as 2,200 m.

Victoria Oil & Gas PLC is installing surface facilities to develop two-well Logbaba gas-condensate field on the Logbaba concession in the city of Douala, Cameroon, by yearend.

The field has 212 bcf of proved and probable reserves in the Late Cretaceous Logbaba formation. The company expects gas sales of 8 MMscfd the first year rising to 44 MMscfd by the end of 2014. Victoria said the field is Cameroon's first onshore gas production.

Distribution pipelines are to be horizontally drilled. Pipeline capacity is 60 MMscfd, of sufficient size for the Douala industrial market over the medium term, Victoria said. Gas is to be sold under 11 completed sales agreements and 10 others pending approval. The gas sales price is $16/MMbtu.

Condensate separated at a process plant will be stabilized and stored for transport to the Sonara refinery at Limbe, Cameroon. Condensate production is forecast at the rate of 20 bbl/MMbtu.

The field's current proved and probable reserves are sufficient to supply an average 30 MMscfd for 20 years. In the longer term, as further reserves are proven, gas may be supplied to large gas-fired power stations connected to the grid, with either Victoria investing in an independent power producer joint venture or selling gas to third parties.

Log evaluation, pressure data, and samples indicate that the Dussafu Ruche Marin-1 wildcat off Gabon has discovered 55 ft of pay in a 90-ft oil column in its primary objective, the presalt Gamba formation, said Harvest Natural Resources Inc., Houston.

The well, in 380 ft of water on the Dussafu Marine PSC, has reached 9,953 ft true vertical depth in Upper Dentale. It is to be deepened to test Middle and Lower Dentale exploratory potential. It will then be sidetracked to appraise the Gamba discovery.

Harvest operates the 680,000-acre block with 66.667% interest.

ATP Oil & Gas Corp., Houston, and its subsidiary ATP East Med BV have acquired the Shimshon, Daniel East, and Daniel West licenses off Israel and the Israeli government has approved the licenses.

Based on the acquired licenses, ATP through ATP East Med anticipates spending $3 million to $5 million this year off Israel for acquisition costs, seismic, and preliminary exploration plans.

ATP East Med, as operator, has assumed the drilling contract with Transocean Drilling Israel Ltd. for the Sedco Express drilling unit at the Shimshon location, where it anticipates drilling during the second quarter 2012. ATP expects to spend $24 million to $29 million during 2012 related to the initial exploratory well on the Shimshon license for its 40% working interest.

ATP notes that Isramco Negev, its partner in Shimshon, on Mar. 6 said consulting engineers judge the probability of success on Shimshon to be 20% with a best estimate of gross recoverable gas of 2.3 tcf.

ATP East Med is party to two other licenses off Israel that are awaiting approval by the Israeli Ministry of National Infrastructures.

Sonde Resources Corp., Calgary, believes that it is feasible to develop Zarat oil and gas field on the 768,000-acre 7th of November block shared by Libya and Tunisia in 80-120 m of water in the Mediterranean.

Consulting engineers judge Zarat to contain 362 million bbl of original oil and condensate in place plus 981 bcf of gas, 50% carbon dioxide, in its southern and central portions. The northern portion of the field was not assessed. Of these amounts, 207 million bbl and 471 bcf in place are attributed to the 7th of November block.

Sonde noted that no commercial production exists in the area, development economics are uncertain, and neither Sonde's board, the Tunisian government, nor Joint Oil has approved a development plan. Sonde and the consultants plan to develop a working reservoir model intended to allow preparation of a recoverable contingent resource report later this year.

Joint Oil, which holds Libya's interests in the block, is considered a sanctioned entity under the United Nations' sanctions measures adopted by the UN Security Council on Feb. 26. As a result Sonde is unable to perform under the EPSA until sanctions are lifted and has declared force majeure to Joint Oil.

HRT Participacoes said a PGS vessel completed acquisition on May 14 of 1,500 sq km of 3D seismic on Block 2815 in the Orange subbasin off Namibia. The data are being processed.

Adverse weather suspended 3D seismic acquisition on May 12 by the Polarcus Samur on Orange subbasin blocks 2813A, 2814B, 1914A, and 2713A. Before suspension, the vessel had covered one third of the 2,660 sq km contracted. Shooting will resume in November.

Meanwhile, HRT in early June received 15 boxes containing 3,592 tapes of 3D seismic data recorded on the 2112B and 2212A blocks in the Walvis basin and 2713A and 2813A blocks in the Orange basin. HRT sent the tapes to CGGVeritas RJ for analysis and processing.

Goodrich Petroleum Corp., Houston, said it has purchased 74,000 net acres of leases in Louisiana and Mississippi in the Tuscaloosa marine shale oil trend.

The company, which paid $13 million or $175/net acre, said it plans to begin development in the first quarter of 2012.

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