Exploration/Development Briefs

Sept. 19, 2011

China

Dart Energy Ltd., Brisbane, has mobilized four rigs to the 3,979 sq km Dajing coalbed methane production sharing contract area in northwest China and has spudded the first two exploratory wells.

The DJD-02E and DJD-10E wells are in the contract area northeast of Urumqi in Xinjiang Autonomous District. Assuming no program delays, Dart would expect the first core drilling results to be available in the first quarter of 2012.

The drilling follows approval in August of the 2011 exploration program and budget by the Dajing Joint Management Committee comprised of representatives from Dart and its partner China National Petroleum Corp. The program calls for drilling 14 wells.

Also on site are three desorption units, two permeability test units, and three work camps. Two more exploratory wells are to spud within a week.

Egypt

Energean Oil & Gas SA, Athens, said its Aegean Energy Egypt Ltd. subsidiary has been granted a 3-year extension to September 2014 of the exploration period on the West Kom Ombo concession west of the Nile in Upper Egypt.

Exploration will continue exploring by flying a high-resolution aeromagnetic survey over the entire 23,640 sq km block. The company intends to assess the 60% of the block that is still unexplored. The results will be integrated to the existing model and used to locate 2D seismic surveys.

Energean has drilled two wells that correlate well with the stratigraphy of Al Baraka oil field. Closures in the deeper parts of the basin will be the focus of the new exploration phase.

Energean recently secured a 90% working interest in the block. Groundstar Resources Ltd., Calgary, has a 10% carried interest through the second exploration phase.

Indonesia

Hess Corp., New York, will take a farmout from Niko Resources Ltd., Calgary, to earn a 42.5% working interest in the Kofiau production sharing contract in the Salawati area of West Papua, Indonesia, subject to government approval.

Niko will remain operator with a 57.5% interest. Niko has shot 2,266 sq km of 3D seismic and 1,050 km of 2D seismic on the block and will drill several wells on the PSC as part of an extensive Indonesian deepwater drilling campaign set to begin in 2012.

Labrador

TGS NOPEC Geophysical Co. and PGS have started a 22,000-km multiclient 2D seismic survey in the Labrador Sea off Newfoundland north of oil fields on the Grand Banks.

Data acquisition will continue through the third quarter, and the vessel will return in 2012 to complete the survey. The survey area is north of Hibernia, Hebron, Terra Nova, and White Rose oil fields. It covers some areas nominated in the Newfoundland and Labrador Offshore Petroleum Board's call for bids NL-11-03.

Initial data will be available to clients in the 2011 fourth quarter. The survey is supported by industry funding.

Alaska

Miller Energy Resources Inc., Knoxville, said its Rig 35 is being shipped to the Osprey platform in Alaska's Cook Inlet by way of Seattle and Anchorage.

The National 1320 is a 2,000-hp rig designed for offshore and land drilling. Miller's Cook Inlet Energy LLC subsidiary will operate the rig.

Miller Energy said the rig will enable it to target previously producing wells, drill new wells, and perform routine and incidental maintenance on producing wells.

The company wants to further tap what it called "the enormous potential" in Redoubt Shoal field.

Oklahoma

AusTex Oil Ltd., Sydney, said technical staff are designing hydraulic fracture stimulations for fractured horizontal Mississippian laterals at the 15-4 and 14-5 East Tonkawa Unit wells at its Snake River project in Kay and Noble counties, Okla.

The company said the wells "constitute an important first step in the Snake River development program."

AusTex Oil concluded, "Results from these two completions will prove up additional drilling locations within the East Tonkawa Unit and will also assist in shaping the development plan for the greater Snake River Project area."

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