Exploration/Development news briefs, Sept. 7

Phillips Petroleum � Halliburton Subsea � Sterling Resources � Santos � Delhi Petroleum � Origin Energy � Oil Co. of Australia � Adair Yemen Exploration � Occidental Yemen Sabatain � Saba Yemen Oil � Yemen Co. for Investments in Oil & Minerals � Denbury Resources ... Forest Oil ... Anschutz Overseas ... Mvelaphanda Holdings

Phillips Petroleum Co. UK Ltd. has awarded the �3.5 million diving support vessel services contract for its North Sea Jade development to Halliburton Subsea, a subsidiary of Halliburton Co.'s Brown & Root Energy Services. Work under the multiphase agreement will start later this year with the installation of the docking piles that will assist in the installation of the Jade platform. Once the main phase of construction at the field gets under way in the second quarter of next year, Halliburton will take on installation of a "large number" of pipe-in-pipe spool pieces, structures, and umbilicals, as well as carrying out testing and commissioning.

Romania passed a government resolution approving the concession agreement with Sterling Resources Ltd., Calgary, regarding the South Craiova block. The block covers 1.5 million acres in southern Romania between producing fields in Romania and Bulgaria. Sterling will undertake exploration activities on the block. Initial activity will include the reinterpretation and reprocessing of existing seismic data and the acquisition of new seismic over a portion of the block. Sterling operates the concession and holds a 100% working interest.

Santos Ltd., Adelaide, Australia, has made a gas-condensate discovery with the Roti West-1 exploratory well in the Queensland sector of the Cooper-Eromanga basin. On test, the well flowed 4.7 MMcfd of gas and 345 b/d of condensate from the Permian Epsilon at 2,295-2,310 m. The test was conducted through a 0.5-in. surface choke over one of the multiple gas-bearing reservoirs in the well. This well is 10 km south of the Wippo East-1 well, which discovered gas in multiple horizons in the Permian Toolachee, Epsilon, and Patchawarra. Santos is operator of the well with a 60.0625% interest. Its partners are Delhi Petroleum Pty. Ltd., 23.2%; Origin Energy Resources Ltd., 16.5%; and Boral Ltd. unit Oil Co. of Australia, 0.2375%.

Yemen signed into law the production-sharing agreement for Sabatain Block 20. Adair Yemen Exploration Ltd. will operate the exploration phase of the block. Partners Occidental Yemen Sabatain Inc. and Saba Yemen Oil Co. Ltd. will carry Adair Yemen through the 3D seismic acquisition and will cover 70% of the additional operating costs, said Adair Yemen. The block was granted to the partners in April and approved in August (OGJ Online, Aug. 22, 2000). Adair holds 30%; Occidental, 50%; and Saba, 20%. The interests are subject to a 5% carried interest in the concession area held by Yemen Co. for Investments in Oil & Minerals.

Denbury Resources Inc., Dallas, is performing completion operations on the Fina Fee No. 1 exploratory well in Lirette field, Terrebonne Parish, La. Production of 10-15 MMcfd of gas from the well is expected to begin in the next 30 days, says the firm. Denbury operates the discovery with a 67% working interest and a 50% net revenue interest. The company said analysis of electric logs and core samples indicate about 100 ft of net pay in the Tex W sands at about 17,000 ft.

Forest Oil Corp. and its partner Anschutz Overseas Corp., via their wholly-owned South African subsidiaries, have signed an agreement with Mvelaphanda Holdings (MVP) on Blocks 1 and 2 off South Africa. The agreement gives MVP the right to acquire an initial 10% interest in both concessions, which cover about 13 million acres, and is intended to comply with the government directive for participation by black-owned companies in the upstream sector. The group plans to commence drilling in October 2000, with the first of a four well program designed to determine gas reserves for the area. The estimated cost of the program is $30 million (US). Forest and Anschutz have 70% and 30% working interests, respectively.

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