Albania
Petromanas Energy Inc., Calgary, has won Albanian government approval for three more exploratory well locations on Blocks 2-3 and has chosen not to enter the third exploration phase on Blocks A-B in Albania.
The government approved road and lease construction permits at the Molisht-1 site and two other drilling locations along the Shpirag structure on Blocks 2-3. Petromanas will begin work within 2 weeks.
Molisht is to be drilled after Shpirag-2, which is at 5,500 m in the target carbonate reservoir enroute to a proposed 5,800 m final depth.
In December 2012, after drilling and logging the Juban-1 well, the company completed its work commitments under the second of three phases outlined in the production sharing contract covering Blocks A-B.
Logs at Juban-1 indicated the presence of negligible hydrocarbons, and Petromanas has elected not to enter the third exploration phase on Blocks A-B. After remediating the Juban wellsite at a cost of $295,000, the company will relinquish the 346,000-acre land position in Blocks A-B. It will expense the $19 million carrying value of the blocks.
China
Far East Energy Corp., Houston, is operating 18 rigs with 4 more enroute to its 418,500-acre Shouyang coalbed methane field on the Shouyang PSC in Shanxi Province southwest of Beijing.
The company spudded 7 new wells in the past 12 days, bringing to 23 the number of wells spudded in 2013. Five other wells reached total depth in the past 12 days, including 1 well that was drilled to TD in 12 days.
Meanwhile, the firm's 2013 frac campaign has started with 16 wells ready to be fracture stimulated, 13 of which are production wells and 3 of which are appraisal wells. By the time these 16 wells are stimulated, another 10 will be in the queue for fracing.
The company's goal is to continue the frac program uninterrupted until late October or November, ultimately treating 100 wells.
UK
Celtique Energie and Magellan Petroleum Corp., Denver, plan to drill one or two exploratory wells in the Weald basin in southern England aimed at unconventional hydrocarbons.
The UK Department of Energy and Climate Change recently lifted its moratorium on hydraulic fracturing, and the government is exploring new tax incentive proposals to encourage unconventional drilling onshore.
Magellan, one of only three public companies that offer significant exposure to the emerging UK shale play, holds nearly 200,000 net acres in the Weald basin. The acreage also has potential in conventional formations.
Alberta
The Canadian Association of Oilwell Drilling Contractors has hiked its forecast of 2013 drilling in western Canada 2.3% to 10,649 wells based on first quarter performance that was stronger than expected in the association's November 2012 forecast.
CAODC said industry averaged 496 rigs or 61% utilization in January through March, compared with the 60% utilization anticipated in the November forecast.
In first quarter drilling, Alberta utilization averaged 60% (365 rigs running in a fleet of 607), Saskatchewan 56% (70 rigs of 125 available), in British Columbia 81% (47 out of 58 available rigs), and in Manitoba 55% (13 out of 24 rigs available).
CAODC projects that quarterly utilization will be consistent with what was identified last fall with the exception of an uptick to 40% from 35% in the third quarter.
The most substantive revision focused on fleet size. In November 2012, CAODC noted contractors planned to add rigs in 2013 and had anticipated the fleet size for the year would average out to 830 rigs. It is still the case that the fleet is in a period of growth, but the new units will come available later in the year. As a result, CAODC adjusted its 2013 forecast to reflect an annual fleet average of 823 rigs.
Montana
Magellan Petroleum Corp., Denver, said it could eventually add 50 million bbl of oil reserves to its books by bringing an existing oil field at Poplar, Mont., to full-scale carbon dioxide enhanced oil recovery operation.
First step in this process is a CO2-EOR pilot program that Magellan plans to begin this summer with five new wells.
The pilot could cost as much as $20 million, the company said.
The evaluation period will take 12-24 months, after which the company hopes to move to a full-field development.
Magellan is in final stages of permitting the pilot program and close to securing a CO2 supply source for the pilot.
