Exploration/Development news briefs, June 14

Cabot Oil & Gas � Talisman Energy � Summit North Sea Oil � Isramco � BG International ... Kerr-McGee ... Geocan Energy ... Unigeo AS ... Ceska Naftarska Spolecnost SRO ... Nippon Mitsubishi Oil

Jun 14th, 2000

Cabot Oil & Gas Corp., Houston, said it completed and put on stream the dually completed Binvua No. 1-87 development well recently. The well, in Belle Island field in St. Mary Parish, La., was drilled to 11,961 ft TD and cut 112 ft of net productive sand in multiple Miocene sandstones. On test, the Miocene H1 sand at 10,724-54 ft flowed 5.2 MMcfd of gas through a 22/64-in. choke with flowing tubing pressure of 1,450 psi. The Miocene G sand was perforated at 10,470-10,554 ft and flowed 11.2 MMcfd of gas through an 18/64-in. choke with flowing tubing pressure of 3,375 psi. Cabot holds a 100% working interest in and an 80.88% net revenue interest in the well.

Talisman Energy Inc., Calgary, and a United Kingdom firm will proceed with development of the Beauly oil field in the UK North Sea. Talisman and Summit North Sea Oil Ltd. will develop the small field, which has estimated reserves of 3 million bbl of crude. The project involves a contract with Global Marine Integrated Services. Talisman has a 60% interest in the field and Summit 40%. Beauly, formerly known as Zeta field, was discovered in 1998. It will be developed by a 4,000-ft horizontal extension of an existing well, with the oil moved via a subsea pipeline to the Balmoral floating production system. Production is expected to begin later this year at an initial rate of 10,000 b/d.

A consortium led by Isramco Inc. and BG International spudded Nir-1 well off Israel. Nir-1 is in the Yam Ashdod Carveout, 10 nautical miles northwest of Ashkelon, Israel, in 120 m of water. The primary objective is early Pliocene gas sands. The budget for the well is $10 million. Operator Isramco holds 0.36244% working interest in the well, while Isramco Negev 2 LP holds 19.13693%. BG International Ltd. owns a 40% interest; Delek Drilling LP, 21.766%; Clal Industries & Energy, 5.2%; IOC Dead Sea LP, 5.05248%; Dor Chemicals Ltd., 2.4%; Israel Petrochemicals, 2.4%; Naphtha Israel Petroleum Corp., 1.84107%; and Naphtha Explorations LP, 1.84107%.

A group led by a subsidiary of Kerr-McGee Corp. finished drilling the first well on block WA-278-P in the Timor Sea off Australia. 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%.

Geocan Energy Inc., Calgary, has signed a letter of intent to explore for oil and gas reserves on the Rostin Block in the Czech Republic. The agreement, signed with local oil and gas producer Unigeo AS and Ceska Naftarska Spolecnost SRO, will provide for joint participation in exploration drilling and development of the 151 sq km block. The 4-year exploration permit does not carry a seismic or drilling commitment. Under the terms of the agreement, Geocan will earn an 82.3524% working interest before payout and a 70% working interest after payout. The block is in a proven multizone oil and gas producing basin in the southeastern area of the Czech Republic. The work commitment includes an initial exploration fee of $5,600 (Can.) and annual mineral rental rates of less than $10,000 (Can.)/year. There is 270 km of existing 2D seismic on the block, and re-evaluation will begin immediately, says Geocan. Additional seismic will be shot. Wells were drilled on the block during 1972-85 with varying oil and gas shows.

An all-Japanese group led by Nippon Mitsubishi Oil Corp. has made a significant new gas-condensate discovery in the Timor Sea. The group�s Crux 1 wildcat on permit ACP-23, south of the now depleted Skua oil field, has penetrated a 280 m gross hydrocarbon column. On test, the well flowed 65.5 MMcfd of gas and 1,921 b/d of condensate. Few other details are known, as the companies are not listed in Australia and therefore are not required to inform the Australian Stock Exchange. Nevertheless the liquids content in the find has prompted a reevaluation of the region west of the Timor Gap, which to date has been relatively unexplored.

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