Area Drilling

Oct. 9, 2006


Verona Development Corp., Vancouver, BC, is drilling two wells to assess coalbed methane potential south of Liulin on the 1,015 sq km Shilou North Block in the eastern Ordos basin in Shanxi Province.

The two wells, to be cored through the entire gas-bearing coal sequence, target coal seams of the Late Carboniferous Taiyuan and Early Permian Shanxi formations.

Verona also holds the 2,650 sq km Zhengzhou Block, which includes the 600 sq km Yinggong coal field, in Henan Province. The company plans to earn 60% interest in each block.


The government awarded Emerald Energy PLC, London, the 365 sq km Maranta exploration and production contract northeast of producing oil fields in the Putumayo basin.

The 18-month first exploration period calls for gathering 30 km of 2D seismic data and reprocessing 40 km of existing 2D data. A second period, at Emerald’s option, calls for drilling one well to 11,000 ft.


Europa Oil & Gas (Holdings) PLC, London, expects to be awarded the Bearn des Gaves exploration permit in the Aquitaine basin in early 2007 following government approval.

The permit covers 928 sq km west of Lacq and Meillon gas fields. Europa plans to probe a possible western extension of the Lacq play and also sees oil potential on the northern part of the permit.


BPZ Energy Inc., Houston, spudded the first well from the Corvina platform on Block Z-1 in the Pacific Ocean off northwestern Peru.

The well is projected to TD of 10,114 ft in 30-40 days.

Previously penetrated by several wells but never produced, Corvina field is estimated to have 4 tcf of gas in place.

The company secured all environmental permits required to develop the Corvina gas-to-power project. The permits cover the 10-mile gas pipeline to shore, onshore gas processing facilities, and a 160-Mw thermal power plant to be built at the coastal village of Nueva Esperanza.


Tap Oil Ltd., Perth, has taken 85% equity in the SC-41 exploration block in Philippines waters off northeastern Borneo.

The 2006-07 work program calls for gathering of more than 300 sq km of 3D seismic data on the block, in 800-1,200 m of water in the Sulu Sea.

Unocal Corp. identified a deepwater petroleum system in 2000 when it recovered oil from Wildebeest-1, the only well drilled in the deepwater fold belt. The fold belt is strewn with structural and structural/stratigraphic leads.

Tap Oil has three Philippine partners and plans to reduce its interest in the block. Fewer than 25 wells have been drilled in the entire Sandakan basin (see map, OGJ, May 10, 1993, p. 43).


FX Energy Inc., Salt Lake City, started gas production from the Wilga-2 well 25 miles southeast of Warsaw.

For several weeks the company plans to vary the producing zones and flow rates. The well has three pay zones of Carboniferous age at 7,732-8,550 ft. FX Energy is operator with 82% interest in the well and 250,000-acre concession. A unit of Polish Oil & Gas Co. owns the other 18%.

Wilga-2 is FX Energy’s second well to go on production in Poland, the Kleka-11 well having started flowing gas in early 2001.

The company plans to start gas output from the Zaniemysl-3 well within weeks and to spud the Winna Gora exploratory well on a 2D seismic prospect in the Sroda area west of Warsaw within 2 weeks.


Yemen Mayfair Petroleum Corp. plans to spud the Fatima-1 exploration well on Block 22 in western Yemen in mid-October, said participant Oracle Energy Corp., Vancouver, BC.

Projected TD is 2,250 m to target the Middle Miocene that tested 42° gravity paraffinic crude oil and dry gas in Jaizan basin wells to the north in southwestern Saudi Arabia in the early 1990s.

Oracle Energy holds 15% participating interest in Block 22 covering 8,151 sq km in the Tihama basin.


Eden Energy Corp., Vancouver, BC, and Starlight Oil & Gas LLC, private Colorado independent, are drilling the first of two development wells on the 20,000-acre Ant Hill Unit in White River Dome field in 2n-96w and 97w in north-central Rio Blanco County.

The wells, on a farmout to Starlight from EnCana Oil & Gas (USA) in the Piceance basin, target the Cameo coal and Williams Fork sandstones of the Cretaceous Mesaverde Group at 8,100 ft.

White River Dome field has 100 active wells averaging a combined 11 MMcfd and has recovered 65 bcf from 157 wells.

Eden and Starlight may elect to drill as many as 68 other locations, earning interests as they go, extending unit life. The typical well starts at 710 Mcfd, 25% carbon dioxide, and recovers 1.07 bcf in 17 years.


Native American Energy Group., Forest Hills, NY, is attempting to restore production at idle oil wells in Richey field in the Williston basin.

Shell Oil Co. discovered Richey field in 1951 and drilled 10 producing wells in Dawson and McCone counties. Successor independent operators struggled with paraffin accumulation problems and eventually abandoned the field in 1995.

NAEG acquired the Beery oil lease and will rework the wells using the company’s proprietary chemical called Petro-Flo, which it said was successful in revitalizing the Tribal 7-A and Cox 7-1 wells on the Fort Peck Indian Reservation.


Exxel Energy Corp., Vancouver, BC, said its US subsidiary boosted its mineral rights in the Columbia River basin to 325,000 net acres.

The interests are undeveloped, and Exxel Energy (USA) Inc.’s working interest is 100%.

The subsidiary is acquiring more acreage and reviewing its options for development. The area appears to contain an emerging basin-centered gas play, and several operators have obtained drilling permits for new wells.