Yemen remains a rewarding province for independent operators. In the central portion of the Middle Eastern country, Norwegian firm DNO scored more success at its Godah discovery in Block 32. The company flowed 1,511 bbl. of oil per day on its third appraisal well on the prospect, and the good results prompted it to plan additional wells to try to establish the oil-water contact. DNO has preparations in the works to build a 23-kilometer pipeline from Godah to its production facility at Tasour Field.

To the west, in Block S2 in Shabwa Province, German firm OMV tested 1,800 barrels of oil per day at its Al-Nilam-ST1 well. The 3,090-meter well encountered a 430-meter oil column in fractured basement rock. The well offsets the company's Habban-1 discovery, which tested 500 barrels of oil per day from a shallower interval. According to the company, the new well lays the groundwork for commercialization of the field.

And, Canadian firm TransGlobe Energy tested gas at a rate of 3.5 million cubic feet, along with 35 barrels of condensate per day, from its Wadi Bayhan-2 well in neighboring Block S-1. The test was conducted on a 29-meter interval in the Upper Lam formation. Evaluation work will continue, TransGlobe reports.



1 Canada

Calgary-based Paramount Resources Ltd. has negotiated a massive farm-in agreement with Chevron Canada and BP Canada in the Mackenzie Delta region of the Northwest Territories. The farm-in covers more than 1 million acres in exploratory properties EL 394, EL 427 and Inuvik Concession blocks 1 and 2. According to terms, Paramount can earn a 50% interest in the properties by drilling 11 wells and shooting 3-D seismic in a period of four years. After the drilling commitments are satisfied, Paramount can also earn a 50% interest in discoveries previously made at Langley K-30, Olivier H-01 and Ellice I-48. The Langley and Ellice discovery wells were production-tested at rates of 18- and 34 million cu. ft. per day, respectively. Test results from the Olivier well have not been disclosed. Paramount plans to spin out its northern assets into a new publicly traded company, but details are not yet final.



2 Colombia

Colombia is offering 10 blocks in the Caribbean Sea offshore its northern coast to companies interested in E&P opportunities. The area produces the nation's only commercial levels of natural gas. One company planning to participate in the licensing round is Brazil's Petrobras. It had an exploratory license on Tayrona Block in the area with ExxonMobil and Colombia state oil company Ecopetrol, but the consortium turned part of the block back to Colombia's regulatory agency, ANH. Now, Petrobras wants to bid on that tract, according to a Dow Jones news report. Among other companies that have expressed an interest in the round are Statoil, ENI and Gazprom.

In separate activity, a consortium comprising Total SA, Talisman Energy and a subsidiary of Maurel et Prom has been awarded the exploration rights for the Niscota Block. The 623-square-kilometer block is approximately 180 kilometers northeast of Bogota in the Llanos Basin, where major oil finds have already been made. The partners are planning to conduct exploration operations in 2007.



3 Brazil

Shell plans to award a contract before the end of the year for a floating production, storage and offloading vessel on its deepwater Block BC-10 project in the Campos Basin. After the project is sanctioned, Shell will begin development drilling in early 2008. So far, six discoveries have been made in the block and four areas are designated for development, according to Ogilvie's E&P Daily. Water depths in the block range from 1,500 to 2,000 meters. Reserves are estimated at 400 million bbl. of oil and potential peak production is estimated at 100,000 bbl. per day.



4 Peru

The Burlington Resources Peru unit of ConocoPhillips signed contracts for blocks 123 and 124 in the Maranon Basin in the Loreto Department of northern Peru. Under contract terms, Burlington has seven years, with a possible three-year extension, to conduct exploration and drill at least three exploratory wells on the blocks. If it proves up commerciality, it can get a 30-year oil production license. The company must spend at least $55.5 million on Block 123 and $53 million on Block 124 under the exploration phase of the contract.



5 U.K.

Canadian junior Ithaca Energy has made a discovery on its Athena prospect in Block 14/18b-15 in the U.K. sector of the North Sea. The company successfully tested 25-degree API sweet oil at a restricted rate of 1,330 bbl. per day. The well was directionally drilled and penetrated 192 meters of gross oil-bearing sandstones in the Upper Leek formation. Following perforation of a 43-meter vertical interval, the well flowed through a 28/64-in. choke during an 18-hour test. Ithaca owns a 70% interest in the project, EWE Akteingellschaft owns 20% and Zeus Petroleum, 10%.



6 Norway

Statoil has made a discovery at its Tornerose prospect in Block 7122/6-2 in Production License 110B in the Barents Sea. The 3,057-meter well, drilled in 408 meters of water, found gas in several late Triassic sands. It was drilled 60 kilometers east of Snohvit and 100 kilometers northwest of Hammerfest. Gas from the discovery could be used to expand Statoil's liquefied natural gas plant at Melkoya, near Hammerfest. Statoil's partners in the prospect are Petoro, Total SA, Gaz de France, Hess and RWE DEA.



7 The Netherlands

Calgary-based Petro-Canada has started production from its De Ruyter development in blocks P10a and P11b in the Dutch sector of the southern North Sea. After ramping up production in 2006, the company anticipates average production of 18,500 bbl. of oil equivalent per day (90% oil, 10% gas) in 2007 and 2008. Petro-Canada holds 54.07% of the field, and Energie Beheer Nederland holds the remainder. De Ruyter is produced through a gravity-base structure, and wellhead and lattice towers support an integrated production deck. Petro-Canada also operates Hanze Field in the Dutch sector of the North Sea.



8 Poland

Salt Lake City-based FX Energy Inc. started commercial production from three zones at its Wilga well about 25 miles southeast of Warsaw. It has contracted to sell the gas in the Warsaw area. Production comes from three Carboniferous intervals between 2,358 and 2,608 meters. The company and partner Polish Oil and Gas Co. will perform a detailed reservoir test after producing the well for six months to determine if the area has potential for development wells. FX also has begun commercial production at its Zaniemysl-3 well in the western part of the country. The well produces from a Rotliegend sandstone reservoir at 2,915 meters.



9 Egypt

Apache Corp. has farmed into acreage in Egypt held by Regal Petroleum. Apache will pay $4.85 million and will operate the East Ras Budran concession and hold a 75% interest. The companies have agreed on a future exploration program that includes a 3-D seismic survey and the drilling of two wells at a total cost of more than $12 million. The concession is an onshore exploration block in the Western Sinai Peninsula in the Gulf of Suez and covers an area of 521 sq. kilometers.



10 Angola

The 11th oil find has been made in deepwater Block 31 offshore Angola by operator BP and its partners Sonangol, Statoil, ExxonMobil, Marathon and Tepa. The Titania discovery was drilled in some 2,100 meters of water to a total depth of 5,339 meters. The well was tested at a flow rate of 2,045 bbl. of oil per day through a 20/64-in. choke. Titania joins the Urano, Plutao, Saturno, Marte, Venus, Palas, Ceres, Juno, Astraea and Hebe finds on the prolific block. The latest discovery is 23 kilometers northwest of Hebe.



11 Kenya

Woodside Petroleum's keenly awaited drilling campaign offshore Kenya is moving forward. Two wells are planned, one in each of blocks L-5 and L-7. The first of two wells is likely to be in L-5 on the Pomboo prospect and the second well will be in Block L-7 on the Sokwe prospect. These will be the first deepwater wells off Kenya and also the first offshore wells in 30 years. The Australian operator had planned to drill last year but was waiting for a rig. Both prospects have the potential to contain more than 1 billion bbl. of oil in place. Woodside's partners in the acreage are Dana Petroleum, Repsol and Global Petroleum.



12 Russia

Exxon Mobil Corp. has begun flowing oil into the export system for Sakhalin-1. Oil production should ramp up to a peak rate of 250,000 bbl. per day by the close of 2006 with full development of Chayvo Field. The project consists of the newly constructed DeKastri terminal on the Russian mainland, an onshore processing facility and a 24-in., 140-mile pipeline. Next, the Sakahlin-1 partners will develop Odoptu Field; Arkutun-Dagi will be developed later to maintain a production plateau. The project, on the northeast shelf of Sakhalin Island, contains total recoverable reserves estimated at 2.3 billion bbl. of oil and 17.1 trillion cu. ft. of gas. ExxonMobil's partners are Russian firms Sakhalinmorneftegas-Shelf and RN-Astra; Japanese company Sakhalin Oil and Gas Development Co. Ltd.; and India's ONGC Videsh Ltd.



13 China

Anadarko Petroleum Corp. has started oil production from the unitized CFD 11-6/CFD 12-1S development project in Bohai Bay. Anadarko expects to have 10 wells online and producing approximately 15,000 bbl. of oil per day shortly. Gross production is forecasted to ramp up to 22,000 bbl. per day from 22 wells by mid-2007. The development straddles blocks 04/36 and 05/36 and is in about 22 meters of water. The project consists of a gathering platform and two smaller, unmanned satellite platforms, which are tied back approximately 13 kilometers to a floating production, storage and offloading vessel. Houston-based Anadarko operates the project and holds a 29.18% interest; its partners are CNOOC Ltd., Newfield Exploration Co. and Ultra Petroleum Corp.

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