Exploration/Development Briefs

Sept. 16, 2013

Kazakhstan

Condor Petroleum Inc., Calgary, said Kazakhstan has expanded the size of the firm's Zharkamys West 1 Territory in the North Caspian basin by 278,000 acres to a total area of 923,000 acres.

The company targets additional presalt and primary basin exploration plays on the new acreage. It has identified numerous prospective structures and plans to shoot 3D seismic to fully characterize the resource potential.

The Zharkamys expansion has been approved by the Ministry of Oil and Gas of the Republic of Kazakhstan and is expected to be added to the current exploration contract. The proposed minimum work program is an additional $2.9 million.

Malaysia

Malaysia's Petronas let a contract to CGG to shoot and process 10,000 sq km of 3D broadband seismic offshore Sabah and Sarawak in Malaysia.

Acquisition began in August and is due to continue for 5 months. Two vessels are being deployed to ensure the program is completed before the onset of monsoon season.

CGG didn't specify blocks or areas to be surveyed but said they include a shallow-water area. It said the geology ranges from carbonate layers to complex channels and shallow gas anomalies.

Romania

Petroceltic International PLC's Melrose Resources Romania BV subsidiary has spudded a wildcat on the Cobalcescu South prospect in the Black Sea offshore Romania.

The wellbore is to follow an S-shaped trajectory in order to optimally penetrate two primary reservoir targets in Miocene Upper Pontian and Lower Pontian sandstone. The drillsite is in the southwest corner of Block EX-28 in 90 m of water 170 km northeast of Constanta.

Petroceltic was awarded a 40% working interest in the Est Cobalcescu (Block EX-28) and Muridava (Block EX-27) concessions and operates both blocks. It holds Est Cobalcescu in partnership with Beach Petroleum SRL and Petromar Resources SA 30% each.

Petroceltic has carried out a substantial work program, including the acquisition and processing of 1,930 sq km of high-quality 3D seismic. Ongoing structural, stratigraphic, and attribute interpretation of the seismic dataset has yielded a significant prospect inventory composed primarily of biogenic gas prospects, with some potential oil prospects also identified.

In parallel with the subsurface work, preparations for a multiwell drilling campaign have progressed with the selection of drilling locations, well planning, permitting, and site survey work, and the contracting of the GSP Prometeu jack up.

An exploratory well on the adjacent Muridava license is to follow the drilling of Cobalcescu South.

South Africa

An affiliate of BHP Billiton Petroleum Great Britain Ltd. has agreed to acquire the 10% carried interest held by Global Energy Holdings LLC, Denver, in Block 3B/4B in the Orange basin offshore western South Africa.

The BHP affiliate already held the remaining 90% interest in the block. Terms were not disclosed. Appropriate governmental approvals are in process, Global Energy Holdings said.

Uzbekistan

Uzbekistan has issued presidential approvals for the production enhancement contract for the Chegara group of oil fields in southern Uzbekistan, said Tethys Petroleum Ltd.

The firm said it is working under the assumption that Chegara wells will generate cash flow in the near future. The project to enhance oil production from fields in the Bukhara-Khiva region is to be carried out under a contract between Tethys Petroleum unit Chegara Production Ltd., JSC Uzneftegazdobycha, and JSC Uznefteproduct.

Vietnam

A group led by Eni SPA plans to spud the Ca Ngu exploratory prospect in mid-September on Block 120 in the Song Hong basin offshore Vietnam.

Primary objectives are Pliocene clastic reservoirs and a Miocene carbonate reservoir. The 500 sq km of 3D seismic shot in mid-2012 reveals an Oligocene synrift section much thicker than previously thought, said Neon Energy Ltd., Perth, whose Vietnam unit has a 25% interest in the block.

The thicker Oligocene section potentially increases the volume of mature source rock available to generate hydrocarbons and also opens up the possibility of a gas play on the block, Neon Energy said.

The seismic character of the Pliocene objectives suggests a channelized depositional setting, prognosed to contain clastic reservoirs at multiple levels. A number of levels exhibit anomalous seismic amplitudes and strong AVO anomalies that can be indicative of the presence of gas and-or oil.

The Ca Ngu-1 well will target the Miocene carbonate reservoir drilled in the BHP Petroleum 120-CS-1X well drilled 12 km north in 1993. That well confirmed a working petroleum system on Block 120.

Neon Energy said success at Ca Ngu would derisk large prospects such as Rua Bien and-or Ca Lang, which remain on the prospect inventory. The results of this well will also provide velocity information relevant to mapping the deeper Oligocene play and a potentially significant fractured basement play, both of which the joint venture is studying.

The Songa Mercur semisubmersible is to drill Ca Ngu-1 as deep as 1,500 m in 270 m of water. Eni Vietnam BV is operator with 50% interest; KrisEnergy (Song Hong 105) Ltd. has 25%.

Alaska

Acquisition of 8,000 km of multiclient 2D seismic is under way in the Chukchi Sea off Alaska's northwest coast in advance of US federal lease rounds scheduled to begin in 2016.

TGS-NOPEC Geophysical Co.'s 2013 project builds on an existing Chukchi Sea survey shot in 2006 in Russian waters and the AWI Chukchi Sea survey acquired in 2008. Data are to be available to clients in second-quarter 2014.

The geophysical contractor said it implemented the project "following productive cooperation with local, state and federal agencies as well as local community stakeholders."