Exploration/Development Briefs

Nov. 5, 2012

Comoros

The government of the Comoros Islands off East Africa between Mozambique and Madagascar issued a statement that Mozambique Channel Discovery, a unit of Boulle Mining Group, is the only firm to have a valid oil and gas exploration and production agreement in Comoros territorial waters.

Another company, which the government did not name, has claimed to also have such an agreement.

Egypt

Sea Dragon Energy Inc., Calgary, and Dana Gas have fulfilled the work commitment for the Kom Ombo Block 2 concession 1,000 km south of Cairo and will surrender the balance of the area in January 2013. The concession contains an 11,400 sq km exploratory area as well as Al Baraka field, averaging 535 b/d of light oil from multiple reservoirs.

This year, the firm drilled the AB-16 development well, completed as a Kom Ombo A producer, and the AB-17 development well as a dry hole. They recompleted the AB-11 well in the Six Hills F-1 formation after suspending it in March 2011. The Faris exploratory well was dry, and the West Al Baraka-2 well resulted in a new Abu Ballas oil discovery.

The firms applied for a development lease for West Al Baraka-2, and once it has been approved will place the well on extended test to assist in preparing a development plan.

Mongolia

Four subbasins remain to be evaluated after the Gobi Energy Partners LLC subsidiary of Manas Petroleum Corp. plugged and abandoned the Ger Chuluu-D1 well in the Ger Chuluu subbasin at 600 m without finding hydrocarbon shows.

Ger Chuluu-D1, the second well drilled in the Ger Chuluu subbasin, was drilled in an effort to achieve a final conclusive answer about subbasin's potential.

Gobi Energy plans to drill its next well on the East Sainshand A prospect, but because the seasonal window closes at the end of October will postpone that well to the next seasonal drilling window.

Gobi Energy had originally focused on six subbasins. The southeastern part of the acreage, which is currently under evaluation, has not yet been considered.

A detailed evaluation review of all prospects based on the lessons learned in the Ger Chuluu subbasin is ongoing and might influence the drilling strategy.

New Zealand

New Zealand Oil & Gas Ltd. has reached a conditional agreement to acquire a 6.667% interest, 5% of which is carried, in Petroleum Exploration Permit 38451 in the Deepwater Taranaki basin off New Zealand. If the transaction is completed, NZOG would acquire 6.111% from Global Resource Holdings LLLP and 0.556% from Randall C Thompson LLC. Each of those would continue to hold a 5% carried interest in the permit. The agreement is subject to conditions.

Other partners in the permit are Anadarko Petroleum Corp., operator with 50% interest, and Hyundai Hysco, 33.333%. They have preferential rights to the assignment, which they have 10 days to exercise. It's also conditional on New Zealand ministerial consent to the agreement, consents, and regulatory approvals being received for drilling a well on the Romney prospect of the permit, and the operating committee approving an authorization for expenditure for well costs.

PEP 38451 is the first exploration permit granted over the deepwater extension to Taranaki basin. It covers 16,380 sq km and includes multiple prospects and leads. The permit has a drilling deadline of Sept. 30, 2013.

Anadarko has publicly indicated it plans to use a drillship under construction, Noble Drilling Corp.'s Bob Douglas, for its offshore New Zealand drilling campaign in the 2013-14 drilling season. Under the agreement, NZOG would pay $9.5 million in three tranches on fulfillment of conditions.

Papua New Guinea

Total SA has acquired interests and options from Oil Search Ltd. in five offshore and land blocks in the Gulf of Papua offshore Papua New Guinea.

Oil Search, as operator, and Total will explore and appraise the licenses, which are believed to have high potential for gas discoveries. Two exploratory wells are planned in early 2013.

Total will acquire a 40% interest in PPL 234 and 244, a 50% interest in PRL 10, and the option to acquire a 35% interest in onshore licenses PPL 338 and 339. The offshore blocks are in as much as 100 m of water.

PPL 234 and 244 lie north of the 1988 Pandora gas discovery, and PRL 10 surrounds the Uramu gas discovery (OGJ, Oct. 5, 1992). The onshore blocks lie east of Uramu.

Thailand

A group led by Pearl Oil (Amata) Ltd. has spudded the Kinnaree-1 exploratory well on the G1/48 concession in the Kra basin in the northern Gulf of Thailand offshore Thailand.

Second well in the Thailand 2012 exploratory campaign, it is projected to 2,689 m in 39 m of water 15 km north of Manora field. It targets synrift lacustrine sands that are the primary hydrocarbon bearing reservoirs in Manora field.

Pearl Oil (Amata) is operator with a 40% interest. Pearl Oil (G1) Ltd. has 20%, Northern Gulf Petroleum Pte. Ltd. 10%, and Tap Energy (Thailand) Pty. Ltd. 30%.