Aug. 13, 2017

Talos Energy, JV partners discover oil offshore Mexico

Talos Energy LLC as operator, together with its joint venture partners Sierra Oil and Gas S. de RL de CV and Premier Oil Plc, has discovered oil from exploration well Zama-1, offshore Mexico. Talos holds a 35% participation interest with Sierra and Premier holding 40% and 25% participation interests, respectively.

The Zama-1 well is the first offshore exploration well drilled by the private sector in Mexico's history. The well, located in 546 feet of water and approximately 37 miles from the Port of Dos Bocas, has reached an initial shallow target vertical depth of approximately 11,100 feet.

Preliminary analysis indicates a contiguous gross oil bearing interval of over 1,100 feet, with 558-656 feet of net oil pay in Upper Miocene sandstones with no water contact and initial gross original oil in place estimates for the Zama-1 well range from 1.4 to 2.0 billion barrels, exceeding pre-drill estimates, some of which could extend into a neighboring block. Initial tests of hydrocarbon samples recovered to the surface contain light oil, with API gravities between 28° and 30° and some associated gas.

The well spud May 21, 2017 utilizing the Ensco 8503, a moored floating drilling rig. The company is currently setting a liner to protect the discovered reservoirs prior to drilling deeper exploratory objectives to a total vertical depth of approximately 14,000 feet (4,267 meters). There are no plans for immediate well testing. Further evaluation will be required to calibrate the well with the existing reprocessed seismic to determine future plans and optimal follow up locations to define the extent of the discovered resource.

During 2015, the company, together with its consortium partners Sierra and Premier (the Consortium), executed two production sharing contracts (PSCs) with Mexico's upstream regulator, the National Hydrocarbons Commission, for Block 2 and Block 7. The PSCs were awarded to the Consortium during the first tender of Mexico's oil and natural gas fields in over 80 years. Block 2 and Block 7 are located in the Sureste Basin in the shallow waters off the coast of Mexico's Veracruz and Tabasco states, respectively. Block 2 and Block 7 contain approximately 162,904 gross acres.

Petro River makes California oil discovery

Petro River Oil Corp. made an oil field discovery in its Sunset Boulevard prospect in Kern County, California upon drilling the Cattani-Rennie 47X-15 exploration well (CR 47X).

The CR 47X was drilled to a depth of approximately 8,500 feet and confirmed at least two commercially successful pay zones. The discovery is currently being evaluated. Several additional prospect wells are now being planned to be drilled in Kern County.

"This is our 3rd discovery in the past 60 days confirming our application of 3-D seismic technology to find overlooked pools of oil in historically prolific fields," said Stephen Brunner, President of Petro River.

Petro River owns a 19.25% interest in the Kern County field based on a 13.75% direct working interest and 5.5% indirect working interest through its 20% equity investment in Horizon Energy Partners LLC.

ExxonMobil finds more oil offshore Guyana

Exxon Mobil Corp. has discovered additional oil in the Payara reservoir offshore Guyana, increasing the total Payara discovery to approximately 500 million oil-equivalent barrels.

These well results increase the estimated gross recoverable resource for the Stabroek Block to between 2.25 billion oil-equivalent barrels and 2.75 billion oil-equivalent barrels.

The well was drilled by ExxonMobil affiliate Esso Exploration and Production Guyana Limited and encountered 59 feet (18 meters) of high-quality, oil-bearing sandstone in the Payara field.

It was drilled to 19,068 feet (5,812 meters) in approximately 7,000 feet (2,135 meters) of water. The well is only 12 miles (20 kilometers) northwest of the recently funded Liza phase 1 project on the Stabroek Block, which is approximately 130 miles offshore Guyana.

The Stabroek Block is 6.6 million acres (26,800 square kilometers). Esso Exploration and Production Guyana Ltd. is operator and holds 45% interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30% interest and CNOOC Nexen Petroleum Guyana Ltd. holds 25% interest.

Cunningham Energy hits milestone oil production in Clay County, WV

Cunningham Energy LLC announced a milestone 20,000 barrels of cumulative oil production on two new shallow horizontal oil wells located in Clay County, West Virginia. The two wells, King #20 & King #21H, are part of the previously announced Lions Paw Program Pad. The shallow horizontal wells were drilled to a total depth of 7000' and 6900', respectively, making them the longest shallow oil wells to date in West Virginia.

"We are of the opinion that shallow horizontal drilling has just crossed into the early innings of development and shows the potential to revitalize many forgotten areas of West Virginia," said Cunningham's principal and operating partner, Ryan Cunningham.

The company is finishing the last of four wells on the Lions Paw Project and expects all wells to be online shortly. The company has also permitted four shallow horizontal Weir Sand oil wells, which are to be drilled in Kanawha County, near the town of Clendenin this year. These new Weir Sand horizontal oil wells will be the first of their type in West Virginia.

Cunningham Energy is an independent producer of oil and gas based in Charleston, West Virginia. The company was formed in 2008 for the purpose of acquiring, exploring, and producing oil and gas in the Appalachian, Illinois, and Williston Basins.