Area Drilling

July 17, 2000
A Japanese group led by Nippon Mitsubishi Oil Corp. made a significant gas and condensate discovery in the Timor Sea.


A Japanese group led by Nippon Mitsubishi Oil Corp. made a significant gas and condensate discovery in the Timor Sea.

The group's Crux 1 wildcat on Permit ACP-23, south of depleted Skua oil field, penetrated a 280-m gross hydrocarbon column. It flowed 65.5 MMcfd of gas and 1,921 b/d of condensate. Few other details are known.

The liquids content has prompted a reevaluation of the region west of the Timor Gap to date relatively unexplored.

A group led by a Kerr-McGee Corp. unit finished drilling the first well on block WA-278-P in the Timor Sea.

The well, located in 300 ft of water, reached 7,740 ft and logged 180 net ft of gas-bearing reservoir in Permian sandstones. Three other wells will be drilled on the block. Kerr-McGee NW Shelf Australia Energy Pty. Ltd. operates the block with 39% interest; PanCanadian Petroleum Ltd. holds 39%; TAP Oil NL, 12%; and SK Corp., 10%.


Kerr-McGee Corp. said the CFD 11-1-3 appraisal well on Block 04/36 in Bohai Bay flowed more than 1,800 b/d of 36° gravity oil from Tertiary Guantao. It also encountered 31° gravity light oil in overlying Tertiary Minghuazhen, but that zone was not tested.

The well is in 92 ft of water about 3 miles north of the discovery well, CFD 11-1-1. TD is 4,921 ft.

Kerr-McGee said it believes that the CFD 11-1 area has estimated oil in place of 1.3-1.5 billion bbl and reserves of 130-150 million bbl.

Kerr-McGee is operator with 81.8% working interest in the block; Pendaries Petroleum Ltd. holds 18.2%.


India's state-owned Oil & Natural Gas Corp. made an oil discovery on a new structure in the Krishna-Godavari basin. The find is in the Amalapuram region of Andhra Pradesh.

ONGC sources said the well flowed about 30 tonnes/day of oil on test. A decision on further drilling will be made after assessing data from the first well.


State Petronas signed a production-sharing contract with Amerada Hess International Ltd. and Petronas Cariga* Sdn. Bhd. for deepwater Block F off Sarawak.

The 8,000-sq-km block is 350 km northwest of Bintulu in 200-1,200 m of water. Some 1,070 line km of 2D seismic data are available over the block.

An Amerada affiliate will operate with 85% interest, and Cariga* holds 15%.

Amerada Hess's minimum financial commitment on the block is $10.5 million. It will acquire and process a further 4,000 line-km of 2D seismic data, reprocess 1,000 line-km of the existing 2D data, undertake geological and geophysical studies, and drill one wildcat to at least 2,500 m below the seabed.


Storm Energy Inc. made a light oil discovery in the Granite Wash formation in its core oil operating area at Red Earth.

The discovery well, 02/8-12-87-10W5M, began producing Apr. 13, 2000. A second well was drilled into the same structure at 6-12-87-10W5M. The wells are flowing at a combined rate in excess of 1,000 b/d of oil.

Based on the existing seismic, well control, and wellbore parameters, Storm estimates the pool contains about 10 million bbl of oil in place. Storm's interest in the area varies from 60 to 75%.

Gulf of Mexico

Devon Energy Corp., Oklahoma City, completed three wells at West Cameron 587 field, said interest owner Houston Exploration Co., Houston.

A-15 and A-16 flowed a combined 25 MMcfd, while A-17, which flowed about 10 MMcfd on test, was to be put on production in early August.

All three wells were drilled from the A platform. Additional compression is required, as the facilities are at capacity.

A fourth well is to be drilled from the B platform during August.


Slawson Exploration Co., Wichita, and Seitel Inc.'s DDD Energy Inc. unit completed four of five wells drilled in the Tonga/Ba* project in the Sacramento basin. The four completions flowed a combined 8 MMcfd of gas from unspecified zones.

The project comprises 145 sq miles of 3D seismic data in Yolo and Solano counties. Three more wells are proposed, and DDD has identified 18 prospects and leads that could be drilled in the next 12-24 months.


The state first district court of appeal denied state and environmental group motions for rehearing of an October 1999 decision involving Coastal Petroleum Co., Tallahassee.

The state issued Coastal a lease in state waters off St. George Island in the Panhandle, but a state agency has cited "compelling public purpose" in not issuing a permit to drill.

The court agreed in October that Coastal had a viable contract with the state to explore for and extract oil and that the agency has prevented Coastal from exercising those rights.

In late June it referred the issue of whether the state must compensate Coastal to circuit court, where the company plans to pursue its claim for inverse condemnation of 400,000-acre lease 224-A.


Meridian Resource Corp., Houston, placed the Guidry 28-1 well in Thornwell field, Jefferson Davis Parish, on production at a gross rate of 12.4 MMcfd of natural gas and 350 b/d of oil. Guidry 28-1 is producing from perforations at 11,600-50 ft.

Manti Operating Co. drilled the well, and Meridian is operating the production.

Manti and Enron North America each hold a working interest of about 33%; Meridian holds 29.5%.