A couple of deepwater discoveries have been added to the bonanza on offshore Angola's Block 32. The finds are the eighth and ninth discoveries on the prolific license since exploration started in 2001, reports interest-owner Marathon Oil Co.

The most recent discovery is the Cominhos-1, approximately 155 kilometers offshore in 1,594 meters of water. It was drilled to a total depth of 4,496 meters and encountered Oligocene reservoirs that flowed 32-degree-gravity crude at a rate of 6,258 barrels per day during testing. Cominhos is 20 kilometers north of the previously announced Caril discovery.

The Louro-1 discovery was also a success. This test was drilled approximately 160 kilometers off the Angolan coast in 1,883 meters of water to a total depth of 4,918 meters. It encountered high-quality Miocene and Oligocene reservoirs. Louro, which is 19 kilometers southwest of the previously announced Gengibre discovery, was not tested due to mechanical reasons.

Total SA operates Block 32 and holds a 30% interest; Marathon has 30%; Sonangol, Angola's state oil company, 20%; ExxonMobil, 15%; and Petrogal, 5%.



1 Canada

Calgary-based senior Canadian Natural Resources Ltd. reports that, during the first quarter of 2007, it drilled 36 horizontal production wells at its shallow Pelican Lake project in Alberta's Northern Plains. The company plans 96 additional horizontal wells by year-end. In addition, it converted nine production wells to water injectors and 21 to polymer injectors. It also installed two additional polymer skids. Results from the polymer flood continue to be positive, CNR reports. Production from Pelican Lake, which is estimated to contain up to 4 billion bbl. of original oil in place, averaged approximately 32,000 bbl. per day during the quarter.



2 Venezuela

Chevron Corp. completed 3-D seismic acquisition on the 530-sq.-kilometer Cardon 3 Block offshore northwestern Venezuela. It and Canadian partner PetroFalcon plan to move to the drilling phase quickly, according to a Business News Americas report. The companies will spud one well this year. Chevron won Cardon 3 with a bid of $5.6 million, and PetroFalcon farmed into the prospect.



3 Ireland

Dublin-based Providence Resources plans an appraisal well at its Spanish Point prospect offshore Ireland next year. Studies on the venture show the discovery is an economically viable project, with potential reserves of 1.4 trillion cu. ft. of gas and 160 million bbl. of condensate, according to Ogilvie's E&P Daily. Providence is looking at development options and is in the market for farm-in partners. The appraisal would offset the IRL-35/8 discovery.



4 Norway

Canada's Talisman Energy continued its string of successes offshore Norway with combined production of 24,000 bbl. per day from wells in Gyda and Brage fields. The Gyda 2/1-A-02A sidetrack from the 2/1-A-02H well found a structural crest in the Upper Jurassic Ula. That well is producing 10,200 bbl. of oil per day to sales. At Brage Field, the Brage 31/4-A-16B infill well tested 13,900 bbl. per day from the Statfjord formation. Norsk Hydro, the operator, and Talisman, working-interest owner, plan three more wells in a Brage drilling program this year. Talisman will also drill two more wells at Gyda during 2007.



5 Russia

Russia's Gazprom has produced first gas from its supergiant Beregovoye Field in northern Russia that is estimated to contain reserves of 11.26 trillion cu. ft. of gas, 40 million bbl. of condensate and 55 million bbl. of oil. Beregovoye was supposed to begin producing in 2003 at a rate up to 424 billion cu. ft. per year. The operator, Sibneftegaz, will produce 177 billion cu. ft. this year and increase production to 282 billion next year. The Russian state gas company now says Beregovoye's capacity is 494 billion annually. So far, the Gazprom affiliate has sunk $450 million into the field and will add up to $60 million more to bring it to peak production. Russian gas company Itera started field development, but could not gain access to a Gazprom-controlled pipeline, so it couldn't start commercial production. Then, Gazprom bought operating rights for a token payment, leaving Itera with 28%.



6 Tunisia

Dallas independent Pioneer Natural Resources Co. has decided to spend an extra $70 million on 2007 drilling in Tunisia, where, since 2003, it has enjoyed a more than 90% success rate. Recently, it announced three discoveries on its operated Jenein Nord Block; a discovery and two successful appraisal wells on the Adam concession; and a discovery on the Borj El Khadra Block. A fourth well on Jenein Nord was being logged at press time. More than 30 prospects have been identified on these three blocks. Pioneer now plans to develop the three discoveries and complete testing of the fourth well on Jenein Nord, and drill at least eight additional wells this year.



7 Angola

Houston firm Vaalco Energy Inc. is preparing to spud its first well offshore Angola before year-end. Vaalco took over operatorship of Block 5, home to a series of small discoveries, in last year's licensing round. Twelve wells were previously drilled on the acreage, yielding three discoveries and four with oil shows. Angolan state oil company Sonangol currently estimates proven reserves at 50 million bbl. of oil. Vaalco has bought 1,000 sq. kilometers of 3-D seismic in the fairway of Block 5, and is processing and interpreting the data. A decision on location for the well was expected by the end of the second quarter. Partners in the block are Vaalco (40%), InterOil (40%) and Sonangol (20%).



8 Namibia

U.K.-based Tullow Oil has started to drill the appraisal wells that could make or break the Kudu gas development offshore Namibia. The objective of the two-well program is to establish commercially productive flow rates from the Kudu East reservoir. If the wells are successful, development options for the field will expand. Tullow is currently talking to the Namibian and South African national oil companies and power authorities about a power station in Namibia and a gas-export pipeline to South Africa. Proven reserves currently stand at less than 1 trillion cu. ft., but Tullow hopes to be able to raise this figure to up to 4 trillion with its appraisal campaign. Japan-based Itochu Corp. recently took a 20% interest in Production License 001, which contains Kudu Field, and will pay 40% of the cost of the two appraisal wells.



9 Saudi Arabia

Saudi Aramco plans 13 new offshore platforms for its massive Manifa oil-development project, the largest offshore venture undertaken by the company. Additionally, 26 existing platforms used for well observations will be modified, and a central gas-processing facility, water-supply system and four downstream pipelines and terminals will be constructed. The field, in the shallow waters of the Persian Gulf, will be capable of producing 900,000 bbl. of oil, 90 million cu. ft. of gas and 65,000 bbl. of condensate per day. Project completion is slated for midyear 2011. Manifa, which contains at least 10 billion bbl. of reserves, was discovered in 1957 and was developed, but was later shut in due to lack of refining capacity for its 28-degree-gravity crude. Capital costs for the development are estimated to be between $7- and $9 billion.



10 Syria

Syria has launched its first offshore round by offering four blocks to international bidders on a production-sharing basis. The government also reported that tenders for seven blocks in the Syrian desert that were kicked off earlier in 2007 were still open. Under terms that also apply to offshore blocks, the government is guaranteed at least 12.5% of any production that comes onstream. Half of Syria's output is produced by state-owned Syrian Petroleum Co. (SPC); the remainder, in partnership of SPC and foreign oil companies. Syrian oil reserves are estimated at around 2.5 billion bbl.; its production of 400,000 bbl. per day comes entirely from onshore fields.



11 China

Puguang gas field, discovered by Sinopec last year in northeastern Sichuan province, is headed for production at a rate of 533 billion cu. ft. per year by 2009. If Sinopec can reach that goal, it will produce a fourth of China's total natural gas output from this single field. Development plans call for an $8.2-billion capital program, which will include a 1,700-kilometer pipeline to Shanghai. Sinopec estimates field reserves at 12.6 trillion cu. ft. of gas.



12 Indonesia

Hess Corp., New York, has started producing gas from its Pangkah Field in Java. The first well in the field is supplying gas through a 40-kilometer pipeline to a power plant in east Java at an initial rate of 20 million cu. ft. per day. In 2004, Hess signed a deal to supply a state power company with 100 million cu. ft. of gas per day for 20 years. It plans a total of four wells at Pangkah.



13 Australia

Houston-based Apache Corp. has signed a contract for a floating production, storage and offloading vessel for its $500-million Van Gogh development in the Exmouth Basin offshore Western Australia. When the field comes onstream in 2009, it will add 20,000 bbl. of oil per day to Apache's global production. Apache has a 52.5% in the project; Japanese firm Inpex has 47.5%.

In related activity in the Exmouth sub-basin, BHP Billiton has spudded the first of five exploration wells near its Pyrenees fields. The Crosby West-1 lies in the WA-12-R permit. In permit WA-155-P, the company will drill the Helvelyn-1, Bleaberry West-1, Ullscarf-1 and Stoneaxe-1. Water depths range from 100 to 200 meters. Apache is a partner in all five wells.



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