Area Drilling

Jan. 15, 2001
China National Offshore Oil Corp. and Husky Oil Ltd., Calgary, teamed up to develop the Wenchang oil fields.

China

China National Offshore Oil Corp. and Husky Oil Ltd., Calgary, teamed up to develop the Wenchang oil fields.

Goal is 2.5 million tons/year by 2002.

The Zhanjiang, Guangdong, branch of the Cnooc and Husky Oil China said CNOOC will operate the two South China Sea oil fields and that Husky will own 40%. WC13-1 and WC13-2 oil fields cover 26.6 sq miles in Hainan province 84.5 miles off Wenchang city.

Colombia

Harken Energy Corp., Houston, spudded Olivo 2 on the 250,000 acre Bolivar Association Contract block.

The well has been designed to test the fracture pattern concentrations detected by the company's newly acquired multicomponent 3-D seismic data.

Harken believes its Olivo 1 well bore did not efficiently access the Cretaceous La Luna fracture pattern, resulting in limited fracture intersections and limited sustainable production. Even so, Olivo 1 has produced 380,000 bbl of oil.

Olivo 2 is expected to intersect more formation fractures. It should encounter La Luna at 3,600 ft and proceed on a high angle basis to 4,700 ft TVD, penetrating all three productive intervals of La Luna.

The well is budgeted at $3.5 million, 35% of the cost of the earlier wells. Harken owns a 100% working interest in the well. First runs through the nearly completed Bolivar flowline are expected in early February.

Denmark

Danish Oil and Natural Gas Co. has a discovery on Block 16/98 in the Danish North Sea.

Cecilie-1 flowed 1,888 b/d from a Danien chalk. A sidetrack confirmed the discovery. The well went to TD 2,319 m in 59 m of water. Working interest owners are DONG, the operator, with 22%, Denerco Oil AS 37%, LD Energi AS 24%, and RWE-DEA AG 17%.

Pakistan

Year 2000 was disappointing for exploration in Pakistan with no major oil or gas discoveries, but results of exploratory drilling in three areas are eagerly awaited.

Tullow Oil PLC planned to start the Lailan and Gupchani wildcats on its 95% owned Nawabshah Block in the Lower Indus basin 200 km northeast of Karachi. It processed 225 line km of new seismic that targeted seven leads in early 2000. Discoveries adjacent to the block since its award in 1997 suggest that several plays exist on the block, Tullow said.

American Energy Group Ltd., Houston, spudded Jacobabad 3, projected to 7,500 ft, on Nov. 27 on 1,930 sq mile Block 2768-4 E/L some 375 km north-northeast of Karachi in the Middle Indus basin. Targets are gas in Sui Main limestone at 3,200 ft, oil and gas in Pab sandstone at 4,500 ft, and oil and gas in Goru-Sembar at 7,500 ft.

Pakistan Oil & Gas Corp. has drilled to 2,440 m at Sabzal 1 about 60 km from Rahim Yar Khan and 20 km from Sadiqabad. It is to go to 3,500 m into the top of Jurassic Chiltan limestone.

Poland

RWE-DEA AG of Hamburg, Germany, took a farmout on Ramco Energy PLC's interest in Carpathian Blocks 434, 435, 454, and 455 in southern Poland.

RWE-DEA will operate and earn a 50% interest by funding the next $6 million of the work program, including the drilling of two wildcats by September 2002.

Polish Oil & Gas Co. has agreed to purchase the gas produced from FX Energy Inc.'s Kleka 11 discovery well in western Poland, FX said. The company did not reveal the well's production.

FX Energy claims to be the first foreign company to sign a gas purchase contract with POGC and the first western company to produce and sell gas from a discovery in Poland (OGJ Online, Sept. 4, 2000).

Russia

Tyumen Oil said a new reservoir discovery in supergiant Samotlor oil field in western Siberia could contain reserves of 365 million bbl of oil.

"The current average flow rate from an initial well drilled in the deposit in Samotlor's Apt-Alb Senomar area is 62 b/d," the company said.

The discovery is Tyumen Oil's sixth since it began operations in 1997 at Samotlor, where production averages more than 300,000 b/d. Tyumen Oil plans more exploration in the area this year.

Venezuela

China National Petroleum Co. spudded a well to probe a previously untested part of Venezuela's Intercampo oil field.

Statoil has an option to take over a 60% interest in the Lake Maracaibo field if the results of this well prove positive.

The agreement with CNPC also allows the group to take over as operator of Intercampo, where the Chinese company is sole licensee. CNPC was awarded the job of reactivating the field in 1997 and started drilling Dec. 14 (OGJ, July 28, 1997, p. 40).

The group has 90 days after drilling has been completed to determine whether it wants to participate in Intercampo. The field lies southeast of LL 652, another reactivation project in which Statoil has a 30% interest.

Prince Edward Island

Canadian independents spudded Dec. 31 at a 12,000 ft wildcat near Souris on the island's northeastern coast.

Meteor Creek Resources Inc., Toronto, and Double Down Resources Ltd., Calgary, said the well is to evaluate the Riverdale sandstone of Carboniferous age. Its location is about 40 miles southwest of the East Point E-49 well in the Gulf of St. Lawrence, which flowed 5.5 MMcfd of gas from Riverdale.

The Bear River prospect is on a 77,000-acre tract. Claude Anger, a Montreal geophysicist and proprietor of AGREN Canada Inc., generated the prospect.

Wyoming

The state issued about 7,000 permits to drill coalbed methane wells during the year, the Wyoming Oil & Gas Conservation Commission reported.

Production ranged from 8.4 bcf/month from 1,800 wells in January to 13.7 bcf/month from 3,390 wells in August. Almost all of the production comes from the Powder River basin.