Upstream News
Apache continues streak in Egypt's Western Desert
Apache reported two new oil discoveries in its Faghur Basin play of Egypt's Western Desert oil and gas province.
A test of the Jurassic Safa sand in the Faghur Deep-1X flowed at a rate of 6,671 barrels of oil and 2.76 million cubic feet (MMcf) of natural gas per day.
The Neilos-1X discovery on the Neith South development lease test-flowed at a rate of 4,179 barrels of oil and 4.2 MMcf of gas per day from the Jurassic Safa formation. The well also encountered two Alam El Bueib (AEB) Cretaceous pay sands that were not tested.
The latest discoveries were developed through evaluation of modern 3D seismic surveys acquired over the southwestern part of the Khalda Offset Concession and the southern part of the West Kalabsha Concession.
In 2011, Apache has drilled and/or completed 11 exploration wells, resulting in nine new field discoveries in the Faghur Basin play. Drilling is continuing on two exploration wells, and seven additional exploration wells are slated to reach total depth in the area before the end of 2011.
Ukraine plans to award first shale gas licenses
The government of the Ukraine said Aug. 23 it will award the first concessions for shale gas exploration in that Eastern European country in the near future. Ukraine's shale reserves are estimated at between 1.5 trillion cubic meters (53 tcf) and 2.5 trillion cubic meters (88 tcf) of technically recoverable shale gas, which are some of the largest shale reserves in Europe.
Ukraine declared its independence from the Soviet Union in 1991 and has since been largely dependent on Russia for gas imports. Ukrainian energy minister Yuriv Boyko said his country would like to reduce that dependence by developing its own energy reserves. Ukraine has been trying to get Russia to lower the price of gas it sells to Ukraine, but Russia has refused unless Ukraine turns over control of its gas pipelines to Gazprom – something the Ukrainians will not do.
Among the countries that have shown an interest in helping Ukraine develop its shale gas reserves are Chevron, ConocoPhillips, ExxonMobil, Eni, Shell, and Statoil. Ukrainian officials have visited several US companies in the past year in hopes of acquiring help developing its own gas supply.
"I know that a number of auctions for the allocation of concession areas for the production of shale gas will be held in the near future," Boyko said.
Anadarko drills successful Mozambique appraisal well
Anadarko Petroleum's Barquentine-2 appraisal well (in Mozambique's 2.6 million-acre Offshore Area 1 (36.5 % working interest) of the Rovuma Basin) was drilled to a total depth of approximately 13,500 feet in 5,400 feet of water and encountered approximately 230 net feet of natural gas pay in high-quality Oligocene-age reservoirs.
This was the first appraisal well in the Windjammer, Barquetine and Lagosta complex, which is estimated to hold a minimum of 6 tcf of recoverable natural gas resources.
The drillship is now being mobilized to the south to drill the Camarao exploration well, also an appraisal well to the Windjammer discovery.
Anadarko has awarded contracts to KBR and Technip for pre-FEED work for a prospective LNG facility for the region.
Third well goes on stream at ATP's Telemark Hub in GoM
ATP Oil & Gas Corp. said Aug. 24 that it has begun producing oil at its Mississippi Canyon Block 941 A-2 (#4) well in the deepwater Gulf of Mexico. The MC Block 941 A-2 well is located on the Mirage Field and is the third well brought on production at the Telemark Hub location utilizing the ATP Titan floating drilling and production platform.
The well delivered on ATP's original expectations with an initial rate exceeding 7,000 boe per day. When drilled, the A-2 well encountered four Miocene sands that are approximately 500 feet structurally higher than the same sands in the MC 941 A-1 well. The A-2 well is completed at a measured depth of 17,600 feet in the C and D sands. All permits to immediately begin drilling the fourth well, MC 942 #2, have been approved with production projected later this year. Company-wide production now exceeds 31,000 boe per day.
T. Paul Bulmahn, ATP chairman and CEO, commented: "We have finally realized the planned material production revenue of this well that has been much anticipated for 16 months. This well was already drilled to 12,000 feet and cased prior to the Macondo spill and became subject to the moratorium."
ATP operates the $1 billion-plus deepwater Telemark Hub in approximately 4,000 feet of water with a 100% working interest and holds a 100% ownership in ATP Titan LLC which owns the ATP Titan and associated pipelines and infrastructure.
BOEMRE sets GoM offshore lease sale for Dec. 14 in New Orleans
The US bureau of Ocean Energy Management, Regulation, and Enforcement (BOEMRE) has scheduled the first oil and natural gas lease sale in the Gulf of Mexico since the Deepwater Horizon blowout and oil spill in April 2010. The date is Dec. 14 in New Orleans and the sale will include all available unleased areas in offshore Texas.
The proposed lease sale includes about 3,900 unleased blocks that encompass approximately 20.6 million acres. Parcels are from nine to 250 miles offshore. BOEMRE estimates that the sale could result in increased production of 222 million to 423 million barrels of oil and 1.49 to 2.65 trillion cubic feet of natural gas.
The bureau has proposed to hike the minimum bid amount for blocks in water depths of 1,312 feet and more to $100 per acre.
US Interior Secretary Ken Salazar commented in a prepared statement: "The sale is an important step toward a secure energy future that includes safe, environmentally sound development of our domestic energy resources."
Kosmos Energy discovers light oil at Akasa-1 well in offshore Ghana
Dallas-based Kosmos Energy said Aug. 23 that it had a light oil discovery at the Akasa-1 exploration well on the West Cape Three Points Block offshore the Republic of Ghana (West Africa). Full analysis of well results, including wireline logs, reservoir pressures, and fluid samples, confirms that the well penetrated 108 feet of oil-bearing pay in four good-quality Turonian–aged sand packages. The Turonian reservoirs encountered are similar in age to those discovered at Jubilee and Mahogany East. Oil samples recovered from the Akasa-1 well indicate 38 degrees API gravity.
The "Atwood Hunter" rig drilled the Akasa-1 well to a total depth of 12,854 feet in 3,798 feet of water. The drilling rig will be released to another operator following final operations at Akasa-1. Kosmos and its partners' near-term drilling plans include the Cedrela exploration prospect, which is currently under force majeure discussions, and two appraisal wells at the Teak discovery on the West Cape Three Points Block. In addition, the company and its partners plan to drill at least two appraisal wells at the Enyenra field on the adjacent deepwater Tano Block, offshore Ghana.
Kosmos also announced successful flow test rates at the Tweneboa discovery on the deepwater Tano Block. At Tweneboa-4, the flow test resulted in sustained rates of approximately 3,500 barrels of condensate per day and 30 million cubic feet of natural gas per day. A drill stem test at the Tweneboa-2 well achieved flow rates of 6,500 barrels of oil per day and 5 million cubic feet of natural gas per day. The data from these tests is being used to optimize development plans for the Tweneboa/Enyenra complex.
Lundin hits gas offshore Malaysia
Lundin Petroleum has made a second gas discovery with the Cempulut-1 well that was drilled in Block SB303, offshore Sabah, East Malaysia.
Cempulut-1 was drilled with the Offshore Courageous rig in a water depth of approximately 246 feet. The well was drilled to a total depth of 3,592 feet.
The Cempulut-1 well intersected a large Late Miocene carbonate reef with excellent reservoir properties.
The gross total vertical pay thickness encountered is approximately 164 feet. The deeper targeted oil leg, however, proved to be water bearing.
A data acquisition program was completed including pressure measurements, sampling and a mini flow test. The data recovered from the well will be analyzed further to determine a range of resource estimates.
The rig will now move to drill the Batu Hitam prospect, in PM308A, the third well in Lundin Petroleum's five well drilling campaign in Malaysia in 2011.
Lundin Petroleum holds a 75% interest in SB303 through its subsidiary Lundin Malaysia BV. Lundin Malaysia BV's partner is Petronas Carigali Sdn Bhd with a 25% interest.
Petrobras confirms continuity of accumulation in Guara area
Petrobras has completed drilling of the second extension well in Guará area, 3-SPS-82A (3-BRSA-923A-SPS), located in the Santos Basin pre-salt.
Informally known as Guará Sul (South Guará), the well was drilled 5.7 km south of wildcat discovery well (1-SPS-55). In a water depth of 2,156 m, Guará Sul is located 315 km off the coast of the state of São Paulo. Including the wildcat well, this is the third well in the Guará area.
Preliminary analyses confirm satisfactory conditions of the reservoir and its lateral continuity. The monitoring of pressures compared to those from the discovery well, currently undergoing Extended Well Test (EWT), verified the hydraulic communication of the reservoir between both wells. This scenario indicates a good perspective of production for this accumulation.
Formation tests still have to be executed to assess the reservoir's productivity.
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