ChevronTexaco has assumed operatorship of Kudu Field, the only commercial discovery offshore Namibia. The major is taking over 4,070-square-kilometer Block 2814A from Shell, which has withdrawn from the project. Kudu was discovered in 1974 by Chevron's Kudu 9A-1 discovery, drilled to a total depth of 4,452 meters in 170 meters of water. Four subsequent wells raised Kudu's proven reserves to 1.4 trillion cubic feet of gas. Shell had hoped that a recent drilling campaign would push the reserves to 5 trillion cubic feet, enough to justify a $2.5-billion floating liquefied natural gas (LNG) plant that would serve international markets. As many as four appraisal wells were planned by Shell, but the major pulled out of Kudu after disappointing results on the first two tests. Shell's working interest in Kudu was 75%; that has been proportionally divided between its former partners ChevronTexaco and South Africa-based Energy Africa, bringing their interests to 60% and 40% respectively. Kudu's reserves now appear to be in the range of 800 billion cubic feet, says Energy Africa. It and ChevronTexaco are shifting their focus from international export markets to local and regional markets. The partners plan to look at several options that may make the field viable, including construction of a steel mill or of a gas pipeline to South Africa. -Peggy Williams 1 Canada Producers will be very active offshore Nova Scotia this year, says Calgary-based Canadian Discovery Ltd. EnCana Corp. is currently drilling below intermediate casing, set at 8,692 ft., at its Torbrook prospect on Exploration License 2384. The well is being drilled in 5,510 ft. of water. Additional tests are planned by the operator this year on its Margaree and Musquodoboit prospects, which are both located near EnCana's Deep Panuke gas discovery on the Scotian Shelf. Partner Murphy Oil says that the shallow-water Margaree well will likely spud in the first quarter. Meanwhile, Canadian Superior Energy intends to participate in at least two wells offshore Nova Scotia this year: a second well on its Marquis prospect and a first well on its Mariner prospect. And, Talisman Energy plans to spud a well on its Balvenie prospect in the second quarter. 2 Canada EnCana Corp. is preparing to spud a deep rank wildcat well at Brewster a-38-J/94-B-3 in northeastern British Columbia. The 10,824-ft. directional test, which will be drilled from a surface location at b-29-J, is in a lightly explored, structurally complex region that has no hydrocarbon production or previous discoveries, says Canadian Discovery. Deep Middle Devonian Presqu'ile gas potential appears to be the primary objective, although exploration potential also exists in Triassic, Permian and Carboniferous formations. The region hosts some highly prospective Devonian intervals, particularly in the Dunedin formation, in which coarsely crystalline Presqu'ile-type dolomite intervals have been mapped at surface. Several upper Paleozoic intervals are also sure to be carefully evaluated. Recent land sales indicate interest is growing in the gas potential of this wildcat region among such firms as EnCana, Petro-Canada and Anadarko Petroleum. 3 Canada Also in northeastern British Columbia, companies are taking the hunt for Ladyfern look-alikes to the Woodrush/Willow region. The bulk of the well locations are on trend with the Slave Point bank edge and appear to be targeting the more porous reefal facies of the northern margin. Operator Apache Canada and partner Anadarko Canada have three exploratory wells at Woodrush and Willow, one of which has reached total depth and appears to be dry. The well, at Woodrush b-94-H/94-H-2, encountered porous Slave Point reservoir but did not test gas. Nearby, operator Murphy Oil and Devon Canada licensed two wells at Milligan Creek b-56-G/94-H-2 and Weasel c-38-G/94-H-2. Additionally, Murphy is going it alone on its Willow a-86-H license, which offsets and is on trend with Apache's two Woodrush wells, and it is pursuing another Milligan Creek Devonian test at c-62-G/94-H-2. 4 Brazil Petrobras has made an offshore discovery in the northern portion of the Campos Basin, on Block BC-60. The 1-EES-116 well was drilled in 4,849 ft. of water and encountered a 197-ft. reservoir containing 19-gravity crude. Potential reserves are about 300 million bbl., according to the company. The find is 10 kilometers from Jubarte Field, which was recently discovered by Petrobras. That accumulation contains about 600 million bbl. of recoverable oil. 5 United Kingdom Amerada Hess has made an apparent discovery in the U.K. sector of the North Atlantic, almost astride the international boundary with the Faeroe Islands. The Cambo-1 was drilled on Block 204/10 in 3,010 ft. of water in the West of Shetlands region. The well is thought to be an extension of Marjun Field, discovered a year ago in Faeroes waters. Hess operates and holds a 32.5% interest in the well, which is still a tight hole. Its partners are ChevronTexaco (32.5%), DONG (20%) and OMV (15%). 6 Egypt Apache Corp. has made its fourth deepwater discovery on its 2.3-million-acre West Mediterranean concession. The El King-1X, drilled in 2,361 ft. of water, found gas and oil in the Miocene and gas in the Pliocene. Two tests were run in the Miocene Middle Abu Madi formation. From the interval, at 7,738-46 ft., the well flowed at a rate of 2,630 bbl. of oil and 1.2 million cu. ft. of gas per day. It also flowed 31 million cu. ft. of gas and 757 bbl. of condensate per day from the interval at 7,664-7,702 ft. In addition, the well encountered 90 ft. of net gas pay in the shallower Pliocene. Apache is the operator of the El King-1X and holds a 55% contractor interest in the deepwater portion of the concession. RWE-DEA has a 35% interest, and BP holds the remaining 10%. 7 Benin Kerr-McGee Corp. spudded a well on offshore Block 4-Benin's first deepwater test. The Fifa-1 is being drilled in 7,125 ft. of water to test the Kaba and Atacora horizons. Pre-drill estimates are that the prospects could contain 150- to 400 million bbl. of oil equivalent. Kerr-McGee operates this well and holds a 70% working interest; Petronas has the remaining 30%. Next, the company plans to drill the Hihon-1, located 35 miles west. That well will test an Alibori prospect in 7,200 ft. of water. 8 Cameroon An exploratory well drilled in the offshore Douala Basin has flowed oil from a Lower Tertiary reservoir. The operator, ConocoPhillips, drilled the Coco Marine-1 in 75 ft. of water to a total depth of 8,620 ft. in Block PH 77. During a drillstem test, the well flowed at a maximum rate of 3,000 bbl. of oil and 1.8 million cu. ft of gas per day. Contractor interests in the 2,830-square-mile permit are held 50% by ConocoPhillips and 50% by Petronas Carigali. 9 Angola Another discovery has been made offshore Angola on prolific Block 17. Operator TotalFinaElf drilled the Zinia-1 in 2,355 ft. of water. The well, the thirteenth discovery on the block, flowed at the rate of 3,640 bbl. of oil per day. TotalFinaElf has also drilled and suspended the Horensia-1 on Block 17, and is currently drilling the Acacia-1, another wildcat. Partners in the license are TotalFinaElf, with 40%; ExxonMobil, with 20%; BP, 16.67%; Sonangol, 13.33%; and Norsk Hydro, 10%. 10 Yemen Tulsa-based Vintage Petroleum has drilled a successful exploration well on its S-1 Damis Block. The An Nagyah-2 was drilled to a total depth of 5,327 ft. and found 46-gravity oil in the subsalt Lam formation. A 65-ft. interval in the upper Lam sand tested at a sustained, water-free rate of 410 bbl. of oil and 3.7 million cu. ft. of gas per day. The company will now drill the An Naeem-3, a well that will assess the oil potential in the An Naeem gas and condensate accumulation. Vintage has a 75% working interest in the 850,000-acre S-1 Damis Block and is its operator. 11 Vietnam BP says its Hai Thach Field in the offshore Nam Con Son Basin is a world-class discovery. The Hai Thach-3X, drilled in 440 ft. of water on Block 05-2, flowed at a maximum rate of 71 million cu. ft. of gas and 7,260 bbl. of condensate per day on a 2-in. choke with a flowing tubing pressure of 2,750 psi. Hai Thach Field is operated and owned 75.9% by BP; PetroVietnam owns the remaining 24.1%. 12 New Zealand Westech Energy reports that it has made an oil and gas discovery in onshore Block PEP 38734. The Taranaki Surrey-1 was drilled to a total depth of 6,349 ft. and encountered a 36-ft. hydrocarbon column in Miocene-aged Mount Messenger sands. On testing, the well flowed 116 bbl. of 30-gravity oil and 1.26 million cu. ft. of gas per day, with no water. Westech, based in Denver, plans to drill an appraisal well about 1.2 kilometers south of the discovery. The company holds a 100% interest in Block PEP 38734.

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