Exploration in Egypt was particularly fruitful during the latter half of 2001, resulting in 15 discoveries, worth an estimated $3.75 billion at current prices. The discoveries, estimated to contain 178 million barrels of oil and condensate and 55 billion cubic feet of gas, represent 90% of Egypt's target for additional reserves for the entire 2001-02 fiscal year, reports Ogilvie's E&P Daily. Shell and Apache Corp. closed out the year with a find in the Western Desert at their 2.4-million-acre Abu Gharadig concession. The JG-1X well tested 4,190 barrels of oil and 5 million cubic feet of gas per day from perforations between 10,497 and 10,517 feet in the Jurassic Khatatba sandstone. Indications are the good times will continue. Apache has already announced its first discovery of 2002, also in the Western Desert. The first of three zones in its Ozoris-1X, in the 2-million-acre Khalda concession, flowed at the rate of 2,504 barrels of oil and 750,000 cubic feet of gas per day. The wildcat, which is nine miles from production, was tested in the Cretaceous Alam el Bueib Sand. Additionally, BP plans to begin a three-well drilling program in the deepwater portion of the Mediterranean Sea. Two of the wells will be on its wholly owned West Mediterranean Deep concession, in 2,600 to 3,300 feet of water. BP's first well will test its Aztec prospect; its second will probe a separate feature. 1 Canada Petro-Canada reports that it has drilled the Terra Nova C-69-1 into the Far East fault block of Terra Nova Field, on the Grand Banks offshore Newfoundland. The well, which encountered approximately 80 meters of Jeanne d'Arc reservoir, was not flow-tested. While the data suggest the Far East sandstones compare favorably to reservoirs elsewhere in the field, additional drilling is needed to determine the potential of the fault block, the company reports. Discovered in 1984, Terra Nova is the second-largest oil field offshore eastern Canada. Petro-Canada operates and holds a 33.99% interest; ExxonMobil, 22%; Husky Oil, 12.51%; Norsk Hydro, 15%; Murphy Oil Co., 12%; Mosbacher Operating, 3.5%; and ChevronTexaco, 1%. 2 Trinidad Australian firm BHP Billiton Plc has made a substantial discovery in Block 2(c) off Trinidad's eastern coast. The exploration well Canteen-1 was drilled to a total depth of 7,070 ft. and encountered approximately 700 ft. of hydrocarbon-bearing sands, including 200 ft. of net oil pay and 179 ft. of net gas pay. It tested at a rate of 3,700 bbl. of oil per day through a 72/64-in. choke. The Canteen-1 was drilled in 164 ft. of water, about a mile north of the earlier Kairi-1 oil and gas discovery in the same block. BHP holds a 45% interest in Block 2(c), TotalFinaElf has 30% and Talisman Energy 25%. 3 United Kingdom Skene Field, in Block 9/19 in the U.K. North Sea, has been brought onstream by operator ExxonMobil Corp. The gas/condensate field is being produced via subsea wells tied back to ExxonMobil's Beryl Alpha platform, some 16 kilometers away. Skene is expected to produce at a peak rate of 180 million cu. ft. of gas per day, plus associated liquids. Recoverable reserves are estimated at 95 million bbl. of oil equivalent. ExxonMobil has 38.21%; Kerr-McGee, 33.33%; Enterprise Oil, 15.98%; Amerada Hess, 9.07%; and OMV, 3.5%. 4 Norway Norsk Hydro has found recoverable reserves of about 120 million bbl. of oil and 120 billion cu. ft. of gas in the Vestflank section of Oseberg Field. This raises the total recoverable reserves for Vestflank to about 190 million bbl. of oil and 210 billion cu. ft. of gas. The company will likely develop the find with a subsea well tied back to the Oseberg Field center. Hydro operates and holds a 22.23% stake in Oseberg; TotalFinaElf, 8.66%; ExxonMobil, 4.33%; Statoil, 14%; and Petoro, the Norwegian state entity, owns 50.78%. 5 Libya Repsol YPF has made a fourth light-oil discovery on Block NC 186 in the Murzuk Basin. The D1 well, drilled about 800 kilometers south of Tripoli, encountered a significant oil column in the Ordovician Hawaz sandstone. During production tests the well flowed 41-gravity oil at a rate of 2,286 bbl. per day on a 16/64-in. choke. The A-1 well tested oil at rates of up to 2,500 bbl. per day in November 2000; the B-1 well tested at rates of 1,300 bbl. per day of light crude in March 2001. In April, the A-2 tested 2,670 bbl. per day. All four discoveries are close to the El Sharara fields in Block NC 115, which produce around 165,000 bbl. per day. The block is estimated to contain recoverable reserves in excess of 250 million bbl. of oil. Repsol's partners in NC-186 are TotalFinaElf, OMV and Norsk Hydro. 6 Nigeria ChevronTexaco Corp. and its partners signed a production-sharing contract on deepwater Block OPL 250. ChevronTexaco will operate and hold a 50% interest in the block; Royal Dutch/Shell, 35%; and Petrobras, 15%. The block, which was highly sought, was won in a licensing round in December 2000, but the signing of the contract was delayed due to negotiations over the profit split between the government and the oil companies. For this year, the Department of Petroleum Resources has recommended 14 blocks for a licensing round: six deepwater, five shelf and three onshore. 7 Equatorial Guinea New York-based Amerada Hess Corp. has confirmed its Oveng discovery in offshore Block G. The Oveng-2 appraisal well encountered 199 ft. of net oil pay and 145 ft. of net gas pay. The 6,989-ft. well was drilled in 696 ft. of water a mile southeast of the Oveng-1 discovery, which was drilled last year. Oveng Field is four miles east of Okume Field, where the company recently completed two appraisal wells. The Okume-2 well, also in Block G, flowed at a rate of 8,457 bbl. of oil per day from a 124-ft. interval. The company is currently drilling the Okume-4 at one-half mile northwest of the discovery well. Amerada Hess operates and has an 85% working interest in Block G and adjacent Block F; Energy Africa Ltd. has the remaining 15%. 8 Bahrain An exploration and production-sharing agreement covering Block V has been signed by ChevronTexaco. The block encompasses the eastern offshore areas of Bahrain, including the Hawar Islands. The company, which owns a 100% interest in the block, expects to drill its first well on the acreage by the end of the year. Petronas, the Malaysian state entity, was awarded blocks IV and VI. It will operate and own a 100% interest in both concessions. Petronas expects to spud its first well within a year. 9 China Kerr-McGee Corp. has made an oil and gas discovery at its CFD 12-1S-1 wildcat in Block 05/36 in western Bohai Bay. The well tested at a combined rate if 6,049 bbl. of oil equivalent from five successful drillstem tests. It encountered more than 200 ft. of hydrocarbon-bearing sandstones in the Dongying, Guantao and Lower Ming formations. The well was drilled on a separate structure approximately five kilometers south of 12-1 Field. Partners in the block are Kerr-McGee, with a 50% interest; Newfield Exploration Co., 35%; and Ultra Petroleum Corp., 15%. <$iCNOOC Ltd. > has the option to take up to a 51% participating interest in any commercial discoveries in the block. The partners have moved the rig 1.5 kilometers southwest to appraise the discovery. 10 Indonesia Pertamina has signed contracts with international companies for several blocks in the Makassar Straits. BP took the Bawean Block in East Java; Conoco, the Nila in Natuna; Amerada Hess, the Tanajung Aru; and TotalFinaElf, the Donggala, along with its partner Inpex Corp. Additionally, Zodan NV and Zudavi NV were awarded the Popodi and Papalang blocks, respectively. In Sumatra, Gulf Canada Resources took the Sakakemang-Jambi Block and Expan took the Rimau. Expan also was awarded the Tarakan Kaltim Black in East Kalimantan. 11 New Zealand Shell Oil is selling interests in its Taranaki Basin holdings to Swift Energy, a Houston independent. Swift will acquire a 97% stake in Tariki, Ahuroa, Waihapa and Ngaere fields, and the associated production facilities and license areas, for $55 million. The onshore fields include 17 wells producing about 930 bbl. of oil, 23.2 million cu. ft. of gas and 450 bbl. of gas liquids per day. Remaining reserves are 65 billion cu. ft. of gas equivalent. The properties are about 17 miles from Swift's Rimu and Kauri discoveries on PEP 38719. Shell will retain the deep rights under the fields, and it also has the right to buy a 25% interest in Swift's Rime and Kauri projects.

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