Exploration/Development Briefs

April 30, 2012


Buccaneer Energy Ltd., Sydney, signed a binding agreement to acquire a 12,000-ft depth capacity land rotary rig on Alaska's Kenai Peninsula from Marathon Oil Corp.'s Glacier Drilling Co. unit for $7.5 million.

The rig was built in 2000 with input from Kenai Peninsula drillers and is designed for pad drilling near residential areas. Buccaneer has received inquiries from operators about contracting the rig and also expects to use it to drill wells for the company.


Castle Resources Inc. has completed an Arbuckle oil well in Rice County, Kan., and partner AusTex Oil Ltd., Sydney, said 3D seismic indicates that three drillable locations remain on the four-way closure. The next well was to spud Apr. 28.

The Ludwig-1, in 35-19s-10w, pumped 240 bbl of 42° gravity oil in 8 hr each day the past week without water from the Arbuckle at about 3,250 ft.

The well is to produce 5-8 hr/day until the rod pump is hooked to a permanent electricity connection by the end of April.

Castle Resources and AusTex are working interest partners in 3,200 acres in Ellsworth and Rice counties.

TGS Nopec Geophysical Co. is shooting a 161-sq-mile multiclient 3D seismic survey at Wellington in south-central Kansas to illuminate the Mississippi lime horizontal oil play.

The Sumner County survey complements the previously announced Bucklin survey is being acquired utilizing a high channel count Vibroseis crew.

Final deliverable products will be processed through pre-stack time migration.


Bayside Corp., Dallas, renewed leases in Muscadine field in Tyler County, Tex., in preparation for rejuvenating the field, discovered in the late 1950s.

The field, with three wells on 230 acres, and has produced 400,000 bbl of oil and 350 MMcf of gas. The company plans to drill one new well to complete in multiple Wilcox formation zones at 8,175-8,500 ft.

Bayside will permit and drill the 2R well to replace the existing No. 2 well, which will be held for conversion to salt water disposal. The No. 3 and 4 wells require National Park Service approval for workover or recompletion. Further drilling will be considered.

Bayside owns 100% working interest in and has a 70% net revenue interest in the field.


Resolute Energy Corp. and the Navajo Nation Oil & Gas Co. have acquired nonoperated assets in giant Greater Aneth oil field in the Paradox basin of Utah from Denbury Resources Inc., Plano, Tex., for $75 million.

Denbury estimated the proved reserves related to the assets sold at 6.4 million bbl of oil equivalent, 98% oil and 58% proved developed producing, at the end of 2011. The company's previously issued 2012 production guidance assumed production from the assets to be 650 boe/d.

At the end of February, Denbury completed the previously announced sale of noncore Gulf Coast assets for $155 million.

Taking into account their respective closing dates, the asset sales will reduce Denbury's 2012 production guidance by 1,625 boe/d.

The company also sold Vanguard Natural Resources units in January for $83.5 million.

More Oil & Gas Journal Current Issue Articles
More Oil & Gas Journal Archives Issue Articles
View Oil and Gas Articles on PennEnergy.com