Exploration/Development Briefs

Nov. 28, 2011

Egypt

TransGlobe Energy Corp., Calgary, plans to appraise the Boraq oil and gas discovery and further explore the 558,120-acre South Alamein concession in Egypt's Western Desert after it receives regulatory approval to close the acquisition of a 50% interest from Cepsa Egypt.

The Boraq-2X well tested a combined 1,700 b/d of 38-40° gravity oil from two Cretaceous zones. The concession, which covers parts of the Alamein and Tiba basins, is fully covered by 3D seismic from which a number of well-defined prospects have been identified. El Paso South Alamein holds the other 50% interest in the concession.

TransGlobe plans to submit a revised budget and Boraq development plan after the transaction closes. Appraisal and development includes drilling at least two appraisal wells and readying the Boraq-2X well for production.

Ethiopia-Kenya

Tullow Oil PLC said full tensor gravity gradiometry surveys have been completed across all Kenyan and Ethiopian blocks. The results provide excellent quality data that will enable interpretation of fault blocks similar to those seen in Uganda, the company said.

The first 2D seismic has already been shot in Ethiopia, and the program continues across the remaining blocks.

In Kenya, the Ngamia-1 exploratory well in Block 10BB is expected to spud in December 2011, and the location of the next well, Paipai-1 in Block 10A, has been selected. Tullow completed its farm-in to offshore Block L8 in Kenya at 15% interest with the option to increase this to 20% on completion of the first well.

French Guiana

A group led by Tullow Oil PLC is nearly finished drilling a sidetrack to recover reservoir cores from its Zaedyus deepwater discovery off French Guiana and expects to complete operations in mid-November.

The partners anticipate that the 2012 program in the Guyana basin will include 3D seismic and two wells. Zaedyus found 72 m of net oil pay in two turbidite fans and proved that the company's Jubilee play off Ghana is mirrored across the Atlantic (OGJ Online, Sept. 9, 2011).

Shell France is expected to take over operatorship of the block from Tullow in early 2012, subject to government and joint venture approval.

Interests in the Guyane Maritime license are Shell France 45%, Tullow 27.5%, Total 25%, and Northpet Investments 2.5%.

Meanwhile in Guyana, the Jaguar well is due to spud in mid-December once the Atwood Beacon rig completes current operations. In Suriname, preparation and planning continues towards a 2,500 sq km 3D seismic program in the second quarter of 2012.

Greenland

Cairn Energy PLC said it has encountered hydrocarbon shows at two wells on the Atammik block off western Greenland and will continue operations through November.

The AT7-1 well in 909 m of water in the South Ungava area 202 km off Nuuk encountered a 113-m gross interval with 50 m of reservoir quality sands of Cretaceous age. Mud losses and poor hole conditions have hampered the full evaluation of this interval, which is of potential interest because of oil and gas shows. Part of the interval is behind casing.

Cairn is running intermediate logs across the cased and open hole sections before deepening the well to total depth. A cased-hole modular dynamic test program is planned to attempt to bring fluid samples to surface.

TheAT2-1 well, fifth in the 2011 program, is being logged after encountering minor hydrocarbon shows. Total depth is 4,847 m in Cretaceous sediments. The well is in 1,045 m of water 180 km off Nuuk and 46 km from AT7-1.

India

Oil & Natural Gas Corp. of India reported a deepwater gas discovery on NELP Block NEC-DWN-2002/2 off northeastern India near earlier discoveries (OGJ Online, July 25, 2007).

The MDW No. 13 well, drilled to 4,904 m TD in 1,171 m of water, encountered what ONGC described as "sands interesting from hydrocarbon point of view" in a middle to late Miocene section.

The state-owned oil company, operator with 100% interest in the block, conducted straddle packer open hole modular dynamic formation tests in five zones, all of which yielded gas.

The earlier discoveries were on blocks designated MN-OSN-2002/1 and MN-DWN-98/3.

Indonesia

Statoil has been awarded operatorship with 80% working interest in the Halmahera II frontier exploration block covering more than 8,000 sq km in eastern Indonesia.

Niko Resources will hold the remaining 20%. No drilling has occurred near the license, the award of which is subject to final approval.

Halmahera II is Statoil's sixth newly accessed license in Indonesia in 2011 and brings the number of licenses with Statoil interest in Indonesia to eight. Halmahera II is adjacent to the Obi and Halmahera-Kofiau licenses.

Statoil has been in Indonesia since 2007 when it was awarded operatorship of the Karama license and took partnership with ConocoPhillips in the Kuma license, both in the Makassar Straits. Statoil farmed into the Halmahera-Kofiau, North Makassar, and West Papua IV licenses in May.

Morocco

Pura Vida Energy NL, Perth, has acquired a 75% interest and is operator of the Mazagan block in the Atlantic off Essaouira, Morocco.

The block covers nearly 11,000 sq km separated from shore by a block held by Kosmos Energy Co. The main prospect, Toubkal, is in deep water 100 km offshore. More than 3,500 sq km of 3D seismic has been shot and several prospects and leads identified.

The company plans to list on the Australian Securities Exchange in December.

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