Area Drilling

May 29, 2000
Sonatrach and Italy's Agip SPA signed two exploration and production contracts.

Algeria

Sonatrach and Italy's Agip SPA signed two exploration and production contracts.

One was a 5-year deal involving Block 222B on the edge of Borj Omar Driss in the Illizi region of southeast Algeria. The work program calls for acquisition of 1,000 km of seismic data plus exploratory drilling.

The other contract covers 2 year on Block 403D on the border of Zemoul el Akbar, near giant El Borma oil field on the Tunisian border. Work commitment is 200 km of seismic and drilling of two exploration wells.

Bahrain

Bahrain Petroleum Co. let a 2-year contract to CGG for geophysical, geological, and reservoir studies of the production potential of Awa* oil field.

Part of the work involves integration with well data of 350 sq km of 3D seismic data CGG acquired on Bahraini territory during June-November 1998.

Awali, found in 1931, was the Persian Gulf's first oil discovery.

Tunisia

Agip and ETAP notched a dual completion at Hammouda field in the Ghadames basin near the Libyan border east of giant El Borma oil field.

Hammouda-4 flowed 1,400 b/d of oil from Silurian Acacus A2 sandstone and 10.8 MMcfd of gas and 1,400 b/d of condensate from the Acacus A7 sandstone. This is Hammouda field's fourth development well.

Hammouda and Oued Zar fields were producing a combined 7,500 b/d of oil and condensate early this year, and Agip was starting up a 10,000 b/d oil processing station this spring. The companies acquired 60,000 line km of 2D seismic on the Oued Zar concession in mid-1999 with positive indications, ETAP reported.

Operators drilled five wells in Tunisia in 1999 and plan as many as 12 this year, ETAP added.

Newfoundland

Husky Oil Ltd. plans exploratory drilling at Cape Race field 16 miles east of White Rose oil field.

Cape Race field, adjacent to North Ben Nevis oil field, could have reserves of 70 million bbl of crude oil. North Ben Nevis field holds 35 million bbl, and combined the fields could be placed on production by 2005, Husky said.

Interests are Husky 67.5%, Petro-Canada 17.5%, and Norsk Hydro Canada 15%.

Northwest Territories

Talisman Energy Inc. and Purcell Energy Ltd., Calgary, will jointly explore the greater Fort Liard region in southwestern Northwest Territories and southeastern Yukon Territory.

Talisman 60% and Purcell 40% will start work right away. The project kickoff in early May coincided with start-up of production from Chevron-Purcell et al.'s K-29 discovery well in the southern NWT 25 miles from Fort Liard.

K-29 and M-25, to go on line in November, each will produce 75 MMcfd. Other participants are Berkley Petroleum Corp., Ranger Oil Ltd., Anderson Exploration Ltd., and Canadian Natural Resources Ltd.

Gulf of Mexico

El Paso Energy Co. recompleted the No. 2 well at South Timbalier Block 86 off Louisiana flowing 20 MMcfd of gas and 100 b/d of condensate from the P-95 sand, said Fortune Natural Resources Corp., Houston.

California

A US-Canada consortium decided to set pipe and attempt completion at the 1 EKHO deep test in the San Joaquin basin, where log interpretation indicated hydrocarbon potential in four sands.

Casing is to be run into the top of the Vedder sands, and Vedder and Phacoides will be open-hole production tested from the top of Vedder to TD at 19,085 ft.

Gross sand thicknesses penetrated at the Kern County well were Vedder 440 ft, Phacoides 160 ft in two intervals, Olcese 965 ft, and Antelope/MacDonald 975 ft.

Mississippi

Expansion might be in sight for a deep Cambro-Ordovician Knox gas play in the Black Warrior basin.

TotalFinaElf is drilling the next well in Maben field, Oktibbeha County, where two wells each average 5 MMcfd of gas from Knox at around 15,000 ft.

Both wells produce through a 4-in. pipeline that restricts their rates. Texas Eastern Transmission Corp. plans to connect both to an 8-in. pipeline that will also serve the well now being drilled.

Field reports indicate that other operators may soon drill to Knox in the area and that exploratory drilling might jump 50 miles southeast to near the Alabama line in Noxubee County, Miss., west of previous unsuccessful deep Knox exploration in Greene County, Ala.

Texas - East

Mitchell Energy & Development Corp. plans to have drilled 18-24 infill wells this year in Personville North field, Limestone and Freestone counties.

About 300 wells have been drilled in Personville North and several smaller fields since the 1970s, mainly targeting Jurassic Cotton Valley lime at about 12,500 ft. Mitchell judges that these wells, each on 160 acres, are recovering only an average 33% of the gas in place.

Light sand frac technology cut completed-well cost by $350,000 or 30% and made tighter well spacing economic. As many as 110 infill wells could be drilled, hiking reserves by 100 bcf. The first well was completed in February for 4 MMcfd of gas and was still exceeding 3 MMcfd in late April.

By yearend production could total 50 MMcfd, up 25%. Mitchell holds about 74,000 acres in the area.