Area Drilling

Sept. 13, 1999
Bangladesh - Niko Resources Ltd., Calgary, with E&P operations mainly in India, is expanding into Bangladesh.


Niko Resources Ltd., Calgary, with E&P operations mainly in India, is expanding into Bangladesh.

Niko signed a framework of understanding with Bangladesh Petroleum Exploration Co. Ltd. for development and production of hydrocarbons from Chattak, Feni, and Kamta gas fields.

The shut-in fields have produced 84 bcf of gas. The government has assigned proved, probable, and possible gas reserves of a combined 1.3 tcf. First task is a 60 day technical evaluation.


National oil company SNH and Carson Services, Perkasie, Pa., reached agreement for the acquisition, processing, and interpretation of 7,350 km of high quality aerogravity, magnetic, and digital topography data over the Logone-Birni area, as well as the Cameroonese sector of Lake Chad in northern Cameroon.

The survey will overlap a majority of the seismic reflection survey lines acquired by Geofyzika in the area in order to enable subsequent integrated interpretation and modeling of the profiles for constrained estimation of depth to basement and of sedimentary thickness, as well as to delineate prospective trapping structures.

Ultimate purpose is to help develop an enhanced understanding of the petroleum system and of drillable structures of potential economic interest in the vicinity of Doba field.

Strong industry interest is expected in the area in light of the impending pipeline connection from Doba to the Gulf of Guinea and the development of Doba and Sedigi fields in Chad, which bracket the undrilled Logone-Birni basin.


Emerald Energy plc, Epson, U.K., will apply for a commerciality declaration for the field discovered by its Gigante 1A sidetrack on the 77.48 sq km Matambo Association Contract in the Upper Magdalena Valley.

Emerald is searching for a partner after the exit of its 14% partner in Matambo, Monument Oil & Gas plc, acquired by Lasmo plc.

Flow tests after stimulation indicate ultimate recovery of more than 60 million bbl of 30° gravity oil from about 13,000 ft in fractured Cretaceous Tetuan, where flow rates exceeded 3,000 b/d of oil plus 2.2 MMcfd of gas.

The company said the well also identified as much as 500 million bbl of oil in Cretaceous Caballos sandstone at 15,500 ft, but drilling mud damage prevented flow on tests in 1998.

Emerald will run a seismic survey near yearend to evaluate whether the structure might extend onto the adjoining 720 sq km Gaitanas block.


Vulcan Minerals Inc., St. John's, Newf., is drilling a wildcat to 300 m in the Flat Bay area along the west coast.

The company is using cable tools at the well, a few miles southeast of the Port au Port Peninsula, where PanCanadian Petroleum Ltd. and Hunt Oil Co. have drilled several deep wells in the late 1990s.

Gulf of Mexico

Mariner Energy Inc., Houston, took a license on more than 250 lease blocks of nonexclusive 3D seismic data from TGS-Nopec Geophysical Co. Mariner plans to use the data to evaluate deepwater acreage.


Stephens Production Co., Fort Smith, Ark., staked an Ordovician test on a large exploratory unit in the Arkoma basin.

The 1 Fort, in 23-7n-30w, Sebastian County, is projected to 9,700 ft or formations through St. Peter, IHS Energy Group reported. The site is on the previously undrilled 12,331.55 acre Chaffee Arkoma Unit, formed recently on the Fort Chaffee Military Reservation.

To the southeast in Gragg field, Reynolds Metals Co., Corpus Christi, staked the 4 McGee, in 35-6n-30w, a planned 11,550 ft test to Penters and Silurian Hunton in Gragg gas field.


Calumet Florida Inc. is drilling a horizontal well in West Felda field in the South Florida basin.

The 1H Collier, in 19-45s-28e, Hendry County, is projected to Cretaceous Sunniland lime at about 13,000 ft MD (OGJ, Mar. 9, 1998, p. 80).


Statoil Energy Inc.'s Eastern States Oil & Gas unit, Alexandria, Va., plans more exploration in the Rome trough.

The 35 Gilliam et al., in Elliott County, is projected to 8,900 ft or Cambrian Rome. It is 31/2 miles southeast of Sandy Hook in Fannin field, which produces from Berea, IHS reported.

This area is about 7 miles west of Rome gas production in Isonville Consolidated field.


Burlington Resources Oil & Gas Co. is starting a deep wildcat in St. Mary Parish, reports Reef Exploration Inc., Richardson, Tex.

The companies picked the site for the 1 Conrad Industries, in 42-16s-13e, based on results of a 60 sq mile 3D seismic survey. Reef said the well is near the center of the Lower Miocene gas trend and has three sandstone reservoir objectives.


Denbury Resources Inc., Dallas, plans to acquire a production unit under carbon dioxide flooding.

Denbury paid an undisclosed seller $13.25 million for the unit, which was producing 1,500 b/d of light, sweet crude in early August. It contains 37 producing wells, 24 injectors, and 43 inactive wells.

The acquisition, to close in early September, is to add 6 million bbl of proved reserves, effective July 1, 1999.


K2 Energy Corp., Calgary, and Miller Exploration Co., Traverse City, Mich., were spudding a third wildcat following two discoveries on the Blackfeet Indian Reservation 35 west of giant Cut Bank oil field.

The 1 Osprey, in 7-34n-11w, Glacier County, cut 38 ft of net gas pay in Two Medicine sandstones at 3,600 ft. Two Medicine, equivalent to Cretaceous Belly River in Alberta, has 12-20% porosity and less than 50% water saturation. It flowed sweet, dry gas during drilling.

The 1 Merlin, in 33-35n-11w, cut 54 ft of net pay in Horsethief, equivalent to Upper Cretaceous Blood Reserve sandstone in Alberta, at 1,400 ft. Porosities are 12-22% and water saturations 35-50%.

A fault repeated section of Horsethief at 2,000 ft has 52 ft of net pay with 12-17% porosity and less than 50% water saturation. Both wells are awaiting completion.

The next well, 2 Osprey, is to test Virgelle sandstone, equivalent to Cretaceous Milk River in Alberta, at 3,500 ft. The drilling program involves 740,000 acres on the sparsely drilled reservation. The first two discoveries are within 8 miles of a gas pipeline.