Drilling/Production news briefs, Oct. 11
Young Oil � Petrobras � Syncrude Canada � Honeywell � Burlington Resources � Grey Wolf � Chevron Canada Resources � Sonatrach � Tesco
Young Oil Corp., Knob Lick, Ky., said it has deepened the Roger Wright No. 1 well in Pickett County, Tenn., to 1,150 ft and it is now producing 102 b/d of oil. Anthony Young, CEO of Young Oil, said the well was deepened to intersect a major fracture in the highly fractured formation. It previously flowed 130 b/d of oil from the Upper Sunnybrook formation at 540 ft depth, but is now flowing from the Stones River Formation.
Brazilian company Petroleo Brasileiro SA (Petrobras) said it reached a new production record of 1.4 million b/d on Sept. 28. The previous record of 1.256 million b/d occurred Mar. 10, 2000, said Petrobras. The company also said it continues to pursue its target of an average 1.3 million b/d of production for the year 2000.
Syncrude Canada Ltd. has signed a 10-year, $117 million advanced controls and maintenance services contract with Honeywell's industrial control business that it hopes will help expand production from the Syncrude oil sands project, said Honeywell. The plan includes expanding production from the project to more than 400,000 b/d by 2008. The Syncrude Project is a joint venture operated by Syncrude Canada Ltd.
Burlington Resources Inc. awarded Grey Wolf Inc., Houston, a 2-year, $11.6 million contract to use Grey Wolf's Rig 558 land drilling rig, one of the largest land drilling rigs in the world. The rig will be used in the Madden Deep area of Wyoming's Wind River Basin. Grey Wolf anticipates it will spend $5 million to meet the contractual obligations.
Chevron Canada Resources Ltd. and partners blame a calculation error for the erroneous report of production volumes from the Fort Liard K-29 well in the southwestern Northwest Territories. Actual production was 85 MMcfd since Sept. 9, not the 60 MMcfd previously reported. Company officials said the discrepancy was found Oct. 3. The well was shut in that same day for routine scheduled corrosion inhibition and restarted Oct. 4 at a rate of 35 MMcfd. It was expected to reach 75 MMcfd by Oct. 6. The K-29 well is one of several major gas discoveries in the Fort Liard region, said Chevron Canada.
The Algerian oil company Sonatrach has awarded Tesco Corp. a $9.5 million contract to provide drilling equipment and services in Algeria until October 2002. Under the contract, Calgary-based Tesco will be providing four portable top drives and one integrated true underbalanced drilling system immediately, said Tesco. Additional top drives are expected to be mobilized over the course of the contract. In addition, Tesco will provide services related to its proprietary casing drilling technology and various other Tesco services.