Cuba
Cie. Maurel & Prom, Paris, will assign to Pebercan, Montreal, its 30% interest in Block 7 along Cuba's north coast, subject to approvals.
Maurel & Prom will receive $10 million (US) in Pebercan preferred shares and a warrant for 2.15 million Pebercan common shares.
The change will bring Pebercan's interests in Block 7 to 60% of the Canasi structure and 55% of the rest of the block. Sherritt International Corp., Toronto, operates Block 7.
Gross production from Block 7 averaged 5,000 b/d in early May, and the government asked that production be accelerated, Pebercan said.
Kenya
The Ministry of Energy awarded three offshore production-sharing contracts to Dana Petroleum PLC, London.
Blocks L5, L7, and L10 cover 35,000 sq km and represent more than half of the country's licensed offshore territory.
Interests will be Dana, as operator, 80% and Star Petroleum International Kenya Ltd. 20%. Each PSC calls for completion of technical studies that will determine potential future seismic programs and exploration drilling.
Existing seismic data indicate the presence of significant geological structures in the unexplored deeper-water areas, Dana said. Several old onshore and shallow-water wells encountered hydrocarbon shows, confirming an active petroleum system in the area.
Modern reprocessing of existing seismic data and satellite oil seep studies are under way, the company said.
Michigan
Savoy Energy LP, Traverse City, Mich., will use several horizontal wells to redevelop gas and condensate in the West Albert 22 Unit in Montmorency County.
Of an estimated 10.2 bcf of gas remaining in the Silurian Niagaran reef, the three existing vertical wells would have recovered only 2.84 bcf due to extensive salt plugging, Michigan Oil & Gas News reported. Cumulative production is 1.24 bcf since 1998.