Although Oman already produces 3.5 billion cubic feet of gas per day, the country plans to explore shale-gas fields for in-country consumption and for liquefied natural gas (LNG) plants and export. The Ministry of Oil seeks to increase reserves by 1 trillion cubic feet per year for the next 20 years. BP and the Ministry are currently discussing production and development terms of the 2,800-square-kilometer Khazzan and Makarem tight-gas fields in northcentral Oman’s Block 61, which has tight-gas reservoirs that were discovered in the 1990s.

According to the Energy Information Administration, Oman needs more gas to meet domestic consumption, its enhanced-oil-recovery projects and LNG export obligations. Currently, the country has too little feedstock for seasonal peak electricity generation, which has resulted in service interruptions that have slowed industrialization, economic diversification programs and economic growth.

According to Arabian Oil & Gas, 1.5 billion cubic feet per day is committed for export on long-term LNG contracts to Asia. The Sultanate also imports 140 million cubic feet of gas per day from Qatar via the Dolphin pipeline. The government is also in discussions with Iran to import gas.

—-Larry Prado

1 Mexico

Mexico City-based Pemex has reported a major gas field discovery in the deepwater Mexican sector of the Gulf of Mexico. The #1-Nen discovery well is in 1,493 meters of water in the Catemaco Fold Belt and was drilled to 4,350 meters. According to the company, proven, probable and possible (3P) gas reserves are approximately 400 billion cu. ft., and the production potential could reach 27 million cu. ft. of gas per day. Well logs, geophysical and dynamic tests, and core samples identified three hydrocarbon-bearing zones with a total pay of about 50 meters. The well was drilled to obtain lithological, sedimentological, and petrophysical information of the Upper, Middle, and Lower Miocene formation, which had already shown gas production in the Noxal, Lalail, Leek, Lakach, and Piklis wells.

2 Canada

In southeastern New Brunswick, Corridor Resources has completed drilling of the 3,188-meter #59-O Corridor Will De-Mille shale-gas appraisal well. According to the Halifax, Nova Scotia-based company, initial interpretation indicates that the well intersected 990 meters of Upper Frederick Brook and 3,160 meters of underlying Lower Frederick Brook. Well logs showed that the venture intersected at least eight shale intervals with significantly elevated gas shows and organic shale, in addition to one 13-meter thick sandstone with good gas shows and visible porosity toward the top of Upper Frederick Brook. The #59-G Will DeMille horizontal well also exhibited good gas shows and is overpressured (13.7 kilopascals per meter). In the second quarter of 2012, Corridor plans to stimulate the potential intervals using liquid propane, similar to a successful fracture stimulation technique used at #41-G Green Road.

3 Colombia

On the Topoyaco Block in Colombia’s Putumayo Basin, Toronto-based Pacific Rubiales Energy has completed the #1X-Yaraqui exploration well after encountering 142 ft. of potential hydrocarbon-bearing sandstones. The well was drilled to 10,651 ft. through the Tertiary and Cretaceous section and penetrated 61 ft. of the pre-Cretaceous basement. According to the company, petrophysical log evaluation showed that the well encountered an interpreted 142 ft. of potential hydrocarbon-bearing sandstones, distributed among the base of Rumiyaco and in Villeta and Caballos—all proven to be commercial reservoirs elsewhere in the basin. Pacific Rubiales is operator of the Topoyaco Block and #1X-Yaraqui with 50% interest, in partnership with Petro-Magdalena Energy, which holds the remaining 50%.

4 Argentina

Repsol YPF subsidiary An - des Energia has reported on a recent exploration well in the Mata Mora Block in Argentina’s Neuquen Province. The #1-xYPF.NQ.Mmo was drilled to 3,151 meters and had a confirmed pay thickness of 136 meters in Vaca Muerta with presence of oil and gas. The Vaca Muerta shale was found at 2,990 meters and numerous oil and gas shows were recorded, with the strongest gas show starting at 3,055 meters, ranging from 440,000 parts per million to a peak of 660,000 parts per million. Oil shows were detected in the mud pits and the well also encountered high pressure in Vaca Muerta. Repsol’s headquarters are in Madrid. Rep-sol YPF Argentina is operator of the Mata Mora Block with 63% interest in partnership with Andes Energy, holding 13.5%, and Ketsal and Kilwer, with 13.5%. The Neuquen Proven cial Co. Gas y Petroleo del Neuquen has the remaining 10% interest.

5 Brazil

In Brazil’s offshore Santos Basin, Petrobras has confirmed the discovery of good-quality oil at its exploration well, #4-SPS-91 (Patola), drilled in Block S-M-1289 , in the Tiro and Sidon area. According to Petrobras, the discovery is in 299 meters of water and was drilled to 2,323 meters. Preliminary analyses through cable tests indicate 36-degreegravity API oil. The reservoir is approximately 2,160 meters deep. Petrobras plans to drill other wells in the area and will proceed with an extended well test, which is in progress at #1-SPS-56 and #1-SPS-57. Petrobras is operator of the block and well, with 100% interest.

6 Brazil

Petrobras has made another discovery in Brazil’s Santos Basin with its exploration well, #4-BRSA-946C-SPS (Bigua), in Block BM-S-8. The Rio de Janeiro-based company reported that the discovery has good quality oil and was found in the ultra-deepwater pre-salt in the Discovery Assessment Plan area of #1-BRSA-532A-SPS, at a water depth of 2,180 meters. The venture was drilled to 6,465 meters and oil samples showed 25-degree-gravity API at a depth of approximately 5,380 meters. A third well to be drilled in the area, Carcara, is under way. Petrobras is consortium operator with 66% interest, in partnership with Shell Brasil Petroleo (20%) and Petrogal Brasil (14%). Shell’s stake has been acquired by Barra Energia do Brasil Petroleo e Gas (10%) and Queiroz Galvao Exploracao e Producao (10%), with the transfer of interest subject to government approval.

7 Poland

In Poland’s Gdansk W Concession, London-based San Leon Energy has drilled and completed its first shale-gas exploration well in the Baltic Basin. The #1G-2 Lewino reached 3,600 meters and encountered continuous gas shows of more than 1,000 meters in middle and lower Silurian shales, and Ordovician and upper Cambrian. Gas analysis indicated methane (C1) with smaller amounts of ethane, propane, butane and pentane (C2- C5). After completion, the rig will be moved to the Braniewo Concession to drill #1-Rogity, which will be immediately followed by a well in the Szczawno Concession. Future operations are expected to include a long offset horizontal with multistage fracturing. The project is funded by Talisman Energy as part of its earning of 60% interest in the concession.

8 Mozambique

The offshore Mozambique appraisal well, #3-Barquentine, encountered more than 662 net ft. of gas pay in two high-quality Oligocene-aged fan systems. Results from the discovery increase the estimated recoverable resource range to 15- to 30 trillion cu. ft. or gas or more, with an estimated 30 to 50 trillion cu. ft. of gas in place. Anadarko Petroleum’s #3-Barquentine was drilled to approximately 13,400 ft. in water depths of approximately 5,170 ft. The appraisal is located approximately 4.4 kilometers southeast of the Barquentine discovery well. Anadarko is operator of the 2.6-million-acre Offshore Area 1 with a 36.5% interest. Co-owners are Mitsui E&P Mozambique Area 1 Ltd. (20%), BPRL Ventures Mozambique (10%), Videocon Mozambique Rovuma 1 Ltd. (10%), and Cove Energy Mozambique Rovuma Offshore (8.5%). Empresa Nacional de Hidrocarbonetos EP’s 15% interest is carried through the exploration phase. Anadarko is based in The Woodlands, Texas.

9 Iraq

Gulf Keystone Petroleum Ltd. has completed the testing program for appraisal well #2-Shaikan in the Kurdistan region of Iraq. The #2-Shaikan is about nine kilometers southeast of #1-Shaikan. Following an August 2011 Triassic discovery in the Kurre Chine C zone, Gulf Keystone conducted nine well tests that targeted Triassic and Jurassic, with a maximum aggregate flow rate of 18,900 bbl. of oil per day. Nearby, Gulf Keystone will drill #6-Shaikan to an estimated total depth of 3,800 meters. Shaikan is a major discovery with independently audited gross oil-in-place volumes of between 8- and 13.4 billion bbl., calculated on the P-90 to P-10 basis with a mean value of 10.5 billion bbl. London-based Gulf Keystone is operator of the Shaikan Block with a 75% working interest. MOL and Texas Keystone each have a 20% working interest.

10 Indonesia

On Indonesia’s East Kalimantan Province, onshore Bengara-I Block, PT Medco Energi E&P has completed drilling and testing its appraisal well, #2-SS South Sebuku. Partner Salamander Energy reported that the well was drilled to 4,547 ft. and encountered more than 45 ft. of net gas-bearing sandstones in Tabul. Drillstem tests were conducted across three of the gas-bearing zones and the well flowed at an aggregate rate of 10.9 million cu. ft. per day. The #2-South Sebuku has been suspended as a potential future producer and the operator is preparing a development plan to incorporate the latest well results before submission to the Indonesian government regulators. Medco is operator of the Bengara I Block and #2-South Sebuku with 35% interest. Salamander holds 41.7%, with the remaining interest not assigned. PT Medco’s headquarters are in Jakarta.

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