NORTH AMERICA

Real-time seismic data to be collected in BC program

Four organizations have partnered to launch a five-year collaborative geosciences program to study the seismicity in northeastern British Columbia (BC). Geoscience BC and the Canadian Association of Petroleum Producers will equally share the program costs, and the BC Oil and Gas Commission and Natural Resources Canada will provide in-kind technical support. A seismic array network will be installed that will include up to six new stations complementing two existing Canadian National Seismograph Network stations. The installation work is expected to be completed by late 2012.

Two-D survey under way offshore Newfoundland

A 20,000-km (12,000-mile) multiclient 2-D survey is being acquired by the M/V Sanco Spirit survey vessel over the northeastern Newfoundland Shelf by TGS in partnership with PGS. Data acquisition will continue into early 4Q 2012, with the vessel due to return in 2013 to complete the survey. The survey area covers the Hibernia, Terra Nova, Hebron, and White Rose fields and includes the recent Mizzen discovery. Initial data will be available in 1Q 2013.

Christina Lake Phase D ramps up oil sands production

Cenovus Energy is producing oil from Phase D at the Christina Lake oil sands project in Canada following steam injection operations that began in 2Q and production startup in July. Output at Christina Lake in August averaged more than 61,000 b/d gross, an increase of nearly 4,000 b/d when compared to 2Q 2012 production. Phase D is planned to produce approximately 40,000 b/d, with the ramp-up expected to be completed in six to nine months, increasing production capacity to 98,000 b/d. Additional expansions are projected to bring total capacity to approximately 300,000 b/d.

GULF OF MEXICO

Mexico unlocks oil find in deepwater GoM

Pemex has made a discovery in the deepwater Gulf of Mexico (GoM) confirming the existence of light crude oil deposits in the Perdido Fold Belt province. The Tri?n-1 well is 177 km (110 miles) offshore the Tamaulipas coast and 39 km (24 miles) south of the border territory with the US. Drilled to a total depth (TD) of 2,500 m (8,202 ft), the well was drilled using the Bicentenario platform. The total well thickness saturated is reported to be 320 m (1,050 ft), with porosity between 18% and 25% and permeability up to 250 millidarcies; the estimated flow rate is 10,000 b/d. A preliminary evaluation has resulted in 3P reserves estimated at 350 MMboe.

Western GoM sale puts 20.5 million acres on the table

The US Bureau of Ocean Energy Management (BOEM) has announced the proposed notice of sale for the western planning area oil and gas lease sale 229. The sale represents the first offshore sale in the BOEM’s new Outer Continental Shelf oil and gas leasing program 2012-17, offering all unleased areas that are available in the western planning area in the GoM. The sale consists of 3,833 blocks covering approximately 20.5 million acres and is scheduled for Nov. 28 in New Orleans, La.

NORTH SEA

Ithaca suspends Hurricane appraisal well

Ithaca Energy has successfully completed a drillstem test on the Andrew sandstone interval in the Hurricane appraisal well, 29/10b-8, in the UK Central North Sea, achieving a gross maximum flow rate of approximately 24 MMscf/d of gas. The well, which was drilled using Awilco Drilling’s Wilhunter semisubmersible rig, also produced an associated condensate of 1,200 b/d from a/ 64 -in. fixed choke after intersecting 10 m (32 ft) of Eocene Rogaland sandstone with a liquids-rich gas interval. The well bore will be suspended as a future Andrew reservoir production well.

Apache flow tests Beryl Bravo well

Apache Corp. has reported that the Beryl Bravo B73y development well in the UK North Sea tested at a rate of 8,161 b/d of oil and 5.9 MMcf/d of gas. The B73y well encountered a Nansen reservoir containing 22 m (71 ft) of net oil pay that began producing at the end of August as well as 75 m (245 ft) of net pay in three additional zones that will be produced at a later date. The company also reported that 3-D seismic surveys of the Beryl field that began in early August are expected to be completed in mid-October.

Statoil orders FSU for Heidrun field

Statoil has issued a letter of intent to Samsung Heavy Industries for construction of a new floating storage unit (FSU) for the Heidrun field in the Norwegian Sea, with options to buy two additional storage units. The unit will replace the existing buoy loading system on the field; it also will be permanently manned and has an expected design life of 30 years. Engineering will start immediately, with the unit planned for delivery in the first half of 2015.

ARCTIC/RUSSIA

Statoil, Rosneft finalize JV for offshore Russia

The two majors have signed shareholder and operating agreements that will establish joint ventures (JVs) for the four offshore Russian license areas included in the companies’ cooperation agreement signed in May. The license areas are Perseevsky in the Barents Sea and Kashevarovsky, Lisyansky, and Magadan 1 in the Sea of Okhotsk. Rosneft will take a 66.67% equity share in each of the operating JVs, with Statoil taking the remaining 33.33% share. Statoil will fund 100% of the costs in the exploration phase, which includes drilling six wildcat wells from 2016 to 2021.

Exillon hits oil pay in Siberian well

The East EWS I-571 well in Siberia has encountered the Jurassic P reservoir at 1,868 m (6,129 ft), confirming 17.8 m (58 ft) of net pay, according to Exillon Energy. The company reported that approximately 30 m (100 ft) of effective net oil pay was exposed because of the angled trajectory of the well bore, and the well flowed water-free oil naturally to the surface, testing at a flow rate of 882 b/d on an 8-mm choke.

Arctic drilling platform study to evaluate shallow-water areas

ExxonMobil and Rosneft have selected Vostochniy Offshore Structures Construction Yard to conduct a concept evaluation and feasibility study for a platform capable of safely exploring the Kara Sea’s shallow waters. The platform concept will be evaluated for use in the East Prinovozemelsky license blocks 1, 2, and 3, which contain a total area of 126,000 sq km (48,600 sq miles) in 20 m to 200 m (65 ft to 650 ft) water depth. Designed to operate in up to 60 m (200 ft) water depth, the proposed structure, along with drilling equipment, would be installed on the seabed to drill a well and then would be refloated and moved to other drill sites and must be built to withstand extreme ice, wind, wave, and temperature conditions.

AFRICA/MIDDLE EAST

Nile Delta discovery extends Egypt’s gas resources

RWE Dea has confirmed the extension of the North Sidi Ghazy-1x discovery in the Egyptian Nile Delta with the successful drilling of development well #NSG-1-2. The North Sidi Ghazy-1x gas discovery, which flowed with a rate of 41 Mcm/hr of gas on a 50/ 64 -in. choke, forms the core asset of the Disouq development project. The latest well has been temporarily suspended and will be completed as a producer in late 2012.

Tullow strikes gas offshore Kenya

The Mbawa-1 exploration well in the L8 license area offshore Kenya has encountered gas in the shallowest objective, according to partner Tullow Oil. The well was drilled to 2,553 m (8,376 ft) when it encountered approximately 52 m (171 ft) of net gas pay in porous Cretaceous sandstones. The well was drilling ahead to 3,275 m (10,745 ft) TD at press time. Apache operates Block L8 with a 50% interest.

South Africa lifts shale gas exploration moratorium

The government of South Africa has lifted the moratorium on shale gas exploration, according to a news release from Falcon Oil & Gas Ltd. The company holds a 100% interest in a 7.5-million-acre technical cooperation permit in the Southwest Karoo basin, which was granted in October 2009. In January 2011, the company submitted an application for an exploration right covering the same area. The Karoon basin measures 600,000 sq km (231,661 sq miles) and contains thick, organic-rich shales such as the Permian Whitehill formation.

Contract awarded for Iraq oil export expansion

Smit Lamnalco has secured a turnkey contract covering operations and maintenance in support of single-point mooring operations for the Iraq crude oil export expansion project (ICOEEP). The company will purchase seven new vessels to support the contract, which involves the full scope of maritime support services for the export facilities. The ICOEEP, 20 km (12 miles) off the Al Fao Peninsula, looks to triple oil exports from Iraq.

ASIA/PACIFIC

Icon well in Cooper basin encounters gas shows

The Halifax-1 well in ATP 855 in Australia’s Cooper basin has intersected an interval of sandstone with elevated gas values in the Nappamerri formation approximately 530 m (1,739 ft) above the primary target Roseneath Epsilon and Murteree section. The well was drilled to 2,670 m (8,760 ft). Wireline log data have indicated a potentially productive gas-bearing interval for testing the best 7-m (23-ft) thick sand at the top of the zone. According to Icon Energy, the test flowed dry gas at approximately 0.2 MMscf/d over a four-hour period; however, a stable flow rate was not established. The potential of the zone as a secondary target will be evaluated.

Songkhla well to be tied in to production

Coastal Energy has reported its Songkhla A-10 well in Thailand’s Songkhla basin was drilled to a depth of 2,253 m (7,400 ft), encountering 65 m (213 ft) of net pay in the Lower Oligocene interval. The gross oil column was approximately 168 m (550 ft) thick. According to the company, this estimated net pay doubles the volumetric estimates for the fault block. The next Songkhla well will test the fault block to the north and, if successful, could warrant an additional production facility in the location to develop the two blocks.

Lundin makes gas discovery offshore Sabah

The Berangan-1 well in the SB303 block offshore Sabah, Malaysia, is the third gas discovery in the region by Lundin Petroleum. The vertical well was drilled to a depth of 1,709 m (5,640 ft) in approximately 70 m (231 ft) water depth and penetrated a gross gas column of more than 165 m (545 ft) in the target mid-Miocene sands 10 km (6 miles) southeast of Lundin’s 2011 Tarap gas discovery and 15 km (9 miles) south of its 2011 Cempulut gas discovery.

SOUTH AMERICA

Solim?es basin well tests positive gas flow

A subsidiary of HRT O&G has concluded the drillstem test in well 1-HRT-9-AM in Block SOL-T-191 in the Solim?es basin onshore Brazil. The test was carried out in the Juru? formation, with a net pay of 36.4 m (119 ft). An interval from 2,770 m to 2,794 m (9,087 ft to 9,168 ft) showed “excellent” flow characteristics through a vertical well, reaching a stable production rate of 18 MMcf/d with a 32/ 64 - in. choke, with a pressure of 3,050 psi. According to HRT, the find opens a new frontier to the southwest of the Juru? field, and the structure has the potential to flow at a rate of 106 MMcf/d when it reaches the development phase.

New gas field in Peru could hold up to 2 Tcf

Repsol has made a new gas discovery in Block 57 in Peru, the company reported. The Sagari well was successful in both the Nia Superior and Nia Inferior formations. Preliminary estimations indicate the field could contain between 1 Tcf and 2 Tcf of gas resources. Production tests carried out at depths between 2,691 m and 2,813 m (8,829 ft and 9,229 ft) produced gas flows of 26 MMcf/d with 1,200 b/d of condensate in one formation and 24 MMcf/d with 800 b/d in the other. The sum of the two tests indicates approximately 11,000 boe/d.

Repsol seals deal for Ocean Rig Mylos

Ocean Rig UDW has signed a contract for its Ocean Rig Mylos, a seventh-generation drillship, to work for Repsol Sinopec Brasil SA. The rig is scheduled for delivery in July 2013. It is the first in a series of three-generation drillships Ocean Rig expects to take delivery of during 2H 2013 from Samsung. The rig is expected to drill in Block BM-C-33 in the Campos basin, where the Seat, Gavea, and Pao de Acucar discoveries have been made. The company estimates the area holds more than 700 MMbbl of light oil and 3 Tcf of gas.

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