NORTH AMERICA

Buccaneer begins production at Kenai Loop

Buccaneer Energy Ltd. started production from its 100% owned Kenai Loop #4 well onshore Alaska, the company said in a press release. The Kenai Loop #4 well is currently producing at an initial rate of 2 MMcf/d, with the long-term deliverable production rate estimated to be 3 MMcf/d to 4 MMcf/d. Kenai Loop #4 gas production is in addition to the company’s current production of 6.5 MMcf/d from the Kenai Loop #1 well.

Chesapeake, Sinopec form Mississippi Lime JV

Sinopec International Petroleum E&P Corp. will purchase a 50% undivided interest in 850,000 of Chesapeake Energy Corp.’s net oil and natural gas leasehold acres in the Mississippi Lime play in northern Oklahoma, Chesapeake said in a press release. The total amount for the joint venture is US $1.02 billion. Production from these assets averaged approximately 34,000 boe/d in 4Q 2012. As of Dec. 31, 2012, there were approximately 140 MMboe of net proved reserves associated with the assets.

GULF OF MEXICO

Noble hits oil at Big Bend prospect

According to IHS Inc., Noble Energy Inc. has made a discovery at its Big Bend prospect in the ultra-deepwater Gulf of Mexico (GoM). Openhole logging at #1 OCS G28022 identified approximately 46 m (150 ft) of net oil pay in two high-quality Miocene reservoirs. The well was drilled to 4,873 m (15,989 ft) in Mississippi Canyon Block 698, and the water depth is 2,195 m (7,200 ft). Noble operates Big Bend with a 54% working interest with partners W&T Energy VI (20%), Red Willow Offshore (15.4%), and Houston Deepwater Ventures V (10.6%).

Chevron GoM test well proves successful

Chevron Corp. conducted a production test on the St. Malo PS003 well in the Lower Tertiary trend in the deepwater GoM, the company said in a press release. Oil flow rates, though limited by testing equipment constraints, exceeded 13,000 b/d of oil. The test, in the GoM’s Walker Ridge Block 678, targeted Lower Tertiary sands more than 6,096 m (20,000 ft) under the seafloor. Chevron has a working interest of 51% in the St. Malo field with partners Petrobras (25%), Statoil (21.5%), ExxonMobil (1.25%), and Eni (1.25%).

MIDDLE EAST

Dragon completes development well offshore Turkmenistan

Dragon Oil Plc completed and tested the Dzheitune (Lam) 28/178 development well offshore Turkmenistan, the company said in a press release. The well was completed as a single producer to a depth of 2,010 m (6,594 ft). The well tested at an initial production rate of 1,653 b/d of oil. The leased rig is currently drilling the Dzheitune (Lam) 28/179 development well.

Condor discovers oil in Kazakhstan

Condor Petroleum Inc. reported an oil discovery on the Kiyaktysai KN-E-201 well at the Zharkamys West 1 territory in Kazakhstan. KN-E-201 encountered a 136-m (446-ft) stacked sand-shale interval while drilling to an intermediate casing setting depth of 1,408 m (4,619 ft). Based on wireline logs, this interval has 58 m (190 ft) of net hydrocarbon pay, consisting of a continuous 41-m (135-ft) light oil column and a separate 17-m (56-ft) gas column.

SOUTH AMERICA

Petrobras tests oil reservoirs below Santos basin

In the Santos basin’s Tupi South area, Petrobras reported results from exploration well #4-BRSA-1047-RJS (4-RJS-698). The well is in 2,188 m (7,178 ft) of water in the Lula field and has confirmed the presence of reservoirs of excellent quality in carbonate rocks below the salt layer. Preliminary assessments indicated that the venture hit 28API gravity oil. The discovery well is the company’s fifth drilled following the transfer of rights agreement for the presalt play. Petrobras is the operator of the Sul de Tupi area and discovery well with 100% interest.

Americas Petrogas finds light oil in Neuquen basin

Americas Petrogas made a light oil discovery on its Totoral block in the southwestern region of the Neuquen basin in Argentina, the company said in a press release. Discovery well LHo.x-1 was drilled and established oil production potential from the Vaca Muerta shale in the Picun Leufu sub-basin. The LHo.x-1 well was drilled to 1,900 m (6,234 ft) total depth, cased, and cemented in mid-2012. It intersected the Vaca Muerta shale formation with thickness of 203 m (666 ft) with oil and gas shows through the whole shale column. Operator Americas Petrogas holds a 90% working interest, and Gas y Petroleo del Neuquen holds the remaining 10% working interest.

ASIA-PACIFIC

Sino hits 16 gas pay intervals in Ordos basin

According to Beijing-based Sino Gas & Energy, the first of two planned Ordos basin wells, #11-TB, found 16 gas pay intervals across multiple pay zones at a site in central China. The discovery, in the Linxing West prospect, was drilled to 2,119 m (6,952 ft) and hit a total of 69.3 m (227 ft) of pay, according to the initial wireline logging results. The structure of the pay zones identified indicated similar geological properties in a previous exploratory well, #07-TB, which is located about 3 km (1.9 miles) southwest. At #07-TB, the well was flow-tested without fracturing and produced 1,860 cf/d of gas from a single zone.

ConocoPhillips, PetroChina team up in Sichuan basin

ConocoPhillips has entered into a set of agreements with PetroChina Co. Ltd., ConocoPhillips said in a press release. Under the agreements, which require government and partner approvals, PetroChina will acquire a working interest in two Australian projects: Poseidon in the Browse basin (20% interest) and Goldwyer in the onshore Canning basin (29% interest). In addition, ConocoPhillips will enter into a joint study agreement to identify unconventional resource reserves in the Neijiang-Dazu Block in China’s Sichuan basin. Under the joint study agreement, ConocoPhillips and PetroChina will study the potential for unconventional resource development in the 500,000-acre Neijiang-Dazu shale block in the Sichuan basin.

EUROPE

Survey forecasts surge in UK activity

An annual survey released by Oil & Gas UK showed that the UK’s upstream oil industry responded to growth-focused tax changes by the government with the highest investment levels for more than 30 years. The survey flagged a total of US $17 billion of investment by oil and gas companies in 2012, with that figure predicted to rise to at least $19.5 billion in 2013. Investments totaling almost $150 billion are now in companies’ plans, according to the survey.

Statoil chooses semisubmersible for Barents Sea project

Statoil has opted for a semisubmersible floating production solution to develop its Skrugard and Havis fields in the Arctic Barents Sea, with a pipeline to transport the crude to shore and a new onshore terminal, the company said in a press release. The field is scheduled to come onstream in 2018, with the Skrugard oil to be piped to shore at Veidnes, Norway. The Skrugard and Havis fields in Production License 532 will have common infrastructure, with production from both to be tied back to a semisubmersible floater unit via a subsea production system located in 380 m (1,247 ft) of water. Production is estimated to eventually flow at almost 200,000 boe/d.

AFRICA

Eni makes two offshore Mozambique gas discoveries

Eni reported two new offshore Mozambique gas discoveries in the Mamba Complex at the #2-Mamba South and #2-Coral delineation wells, which add 6 Tcf of gas in place to Area 4 and confirm at least 68 Tcf of gas in place already discovered, the company said in a press release. The #2-Mamba South was drilled to 4,300 m (14,108 ft) in 1,918 m (6,293 ft) of water. The well encountered 60 m (197 ft) of gas pay in high-quality Oligocene reservoirs. The #2-Coral was drilled to 4,735 m (15,535 ft) in 1,950 m (6,398 ft) of water. The #2-Coral hit 140 m (459 ft) of gas pay in good-quality Eocene reservoirs. Eni is the operator of Area 4 with a 70% interest in partnership with Galp Energia, Korea Gas Corp., and Empresa Nacional de Hidrocarbonetos, with 10% each.

Harvest presalt test strikes pay offshore Gabon

Harvest Natural Resources Inc. reported an oil discovery at exploration well #1-Marin Dussafu Tortue (DTM-1) in the Dussafu Marin Block offshore Gabon. The 3,432-m (11,260-ft) well is in 116 m (380 ft) of water. Log evaluation and pressure data indicate that the company hit approximately 13 m (42 ft) of pay in a 22-m (72-ft) oil column within Gamba and 37 m (123 ft) of pay in stacked reservoirs within Dentale. Harvest is the operator of the Dussafu Marin Block’s production-sharing contract and #1-Marin Dussafu Tortue with 66.67% interest, with Panoro holding the remaining 33.33% interest through a subsidiary.

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