Unconventional solutions for conventional regional needs? Interest in unconventional natural gas supplies is growing worldwide, as success in the U.S. has encouraged an evaluation of global potential.

ExxonMobil Corp. recently acquired two million acres of potential coalbed-methane and shale-gas resources in Germany’s Lower Saxony and North Rhine-Westphalia regions. Regional gas demand is growing, and European countries are seeking to reduce their dependence on Russian and Middle East supplies.

In 2008, ConocoPhillips formed a $1-billion joint venture with Australia’s Origin Energy Ltd. to develop its coal-seam gas assets. And Chevron Corp. and ConocoPhillips have locked in CBM exploration rights in China, which may play a role in helping to reduce the country’s projected energy shortage over the next 20 years.

Methane hydrates are receiving attention as well. A recent study by New Zealand’s Centre for Advanced Engineering, based at Canterbury University, Christchurch, found a potential half-trillion-cubic-foot “sweet spot” for methane hydrates about 80 kilometers off the country’s Wairaiapa Coast, on North Island. In a 2008 report, the U.S. Minerals Management Service estimated that the total volume of biogenically generated in-place gas hydrates on the U.S. Outer Continental Shelf ranges from 11,000- to 34,000 trillion cubic feet.

—Larry Prado

1. Canada

In northeast British Columbia, Husky Energy of Calgary completed and tested two exploratory wells designed to evaluate the Montney and Doig formations. The #9-B Graham b-10-D/94 well flowed gas from Doig at 2.9 million cu. ft. per day. The #15-B Cypress a-31-B/94 well flowed gas from Montney at 5.4 million cu. ft. per day, and from Doig at 2.95 million cu. ft. per day. Husky is developing some 11,500 acres close to Husky infrastructure that has all-season access. It plans to drill the first horizontal well on this land in 2010. Husky also announced that it has acquired an additional 12,500 net acres of land in the Doig-Montney play, increasing its position to more than 24,000 net acres.

2 Peru

In Peru’s Cusco Province, Rio de Janeiro-based Petrobras confirmed natural gas at a field at #1X Urubamba. The well was drilled to 4,000 meters in Block 58. Petrobras is currently analyzing samples and plans to determine the size of the find, which could hold as much as 5 trillion cu. ft. of gas. Petrobras holds 100% of the Block 58 concession. Petrobras plans to drill a second, deeper well at Block 58, #1X Picha 1X, in 2010. Peru currently has up to 15 trillion cu. ft. of gas reserves from southern blocks 56, 57, and 88.

3 U.K.

At the #1 Lancaster exploratory well in the West of Shetlands region, offshore U.K., Hurricane Exploration has reported pay. Initial results showed 34- to 39.2-degree API gravity oil from the discovery, on Block 205/21a. During operations, Hurricane reported oil flowed to the surface from a reservoir section under its own energy. Comprehensive production tests have not been performed due to malfunctioning test equipment and bad weather. Additional testing and appraisal drilling are planned. Hurricane Exploration is based in Alton, Hampshire, in the U.K. The prospect is 100%-owned by the company.

4 Norway

Statoil has hit gas and condensate at the #15/9-B-1 in its Beta West exploration/development project offshore Norway. The well was drilled 1.5 kilometers from the main Sleipner West reservoir. The company estimates the find contains recoverable reserves of 37- to 63 million bbl. of oil equivalent in a Middle Jurassic reservoir. Statoil drilled to 12,337 ft. and hit gas-condensate in the Hugin formation. The company will run production through a tie-back to Sleipner West.

5 Algeria

According to E&P Daily, Petroceltic International’s #1-AT well in Ain Tsila Field, in blocks 228 and 229a in Algeria’s Isarene permit, has hit additional gas pay. The company encountered a 328-ft. gas column and tested the well for an initial flow rate of 33.78 million cu. ft. of gas per day. It believes that flow rates could exceed 40 million cu. ft. per day, and plans additional tests. Petroceltic is based in Dublin.

6 Nigeria

An offshore Nigeria appraisal well, #5 Ebok, by Afren Plc of London, has hit 182 ft. of gross oil pay in the D1 reservoir and 84 ft. of oil pay in the LD-1E reservoir. The company estimates that proven and probable reserves in the total Ebok project are 78 million bbl. of oil with upside resources potential of 74 million bbl. The company recently received permission from the Nigerian government for Phase 1a Ebok Field development. The plan includes five horizontal production wells in the D2 reservoir, one in the D1 reservoir and one water-injection well in the central Fault Block 1 and Fault Block 2 areas of the field. Following completion of this phase, Afren will start Phase 2, which includes full development of the D1 reservoir.

7 Angola

Eni and Sonangol announced an oil discovery at the #1-Cabaca Norte well 350 kilometers north of Luanda, offshore Angola. The well is in Block 15/06 in 500 meters of water and was drilled to 2,830 meters. Constrained by surface equipment, oil flow was measured at 6,500 bbl. per day during production tests. Three discoveries have been reported in the block: Sangos, N’Goma and Cabaca Norte. A delineation test and a second production hub are planned. Rome-based Eni has a 35% working interest and is the operator in Block 15/06, and Sonangol is the concessionaire. The other partners include SSI Fifteen Ltd., 20%; Total, 15%; Falcon Oil, 5%; Petrobras, 5%; and Statoil, 5%.

8 Romania

Two shallow sands have tested for 3 million cu. ft. of dry gas per day at an Aurelian Oil & Gas well, #1 Voitinel, in Romanian’s Brodina concession. Although the primary target had disappointing shows, the well intercepted 59 ft. of pay in a structure with 14 square miles of closure. Additional testing is planned. Aurelian operates the well with a 33.75% stake, Romgas has 37.5% and Europa Oil and Gas holds 28.75%. Aurelian is based in London.

9 Yemen

Oil Search Ltd. has made a discovery with its #1 Tubb’a probe in Yemen’s Block 3. The well produced gas and condensate at sustained rates of more than 14 million cu. ft. of gas and 500 bbl. of condensate per day. The #1 Tubb’a well targeted fractured basement, a recently announced play in the Shabwa Basin. The 2,808-meter well is on trend with Habban Field, which has estimated proven and probable reserves of more than 100 million bbl. of oil. This is the company’s first operated discovery outside of Papua New Guinea. Oil Search has a 60% stake in Block 3, Turkey’s Petoil has a 34% stake and Yemen General Corp. for Oil and Gas holds the remaining 6% interest.

10 Bahrain

According to Gulf Oil and Gas, Manama, Bahrain-based Bahrain Petroleum Co. (Bapco) has completed three gas wells as part of a $100-million program to boost production in the country by an additional 500 million cu. ft. per day. The program calls for drilling eight deep gas wells into the Khuff gas reservoir. The first, #866, was drilled to a vertical depth of 10,550 ft. The second, #869, was the first directional gas well drilled in Bahrain and reached the pre-Khuff formation at 12,325 ft. The third, #868, was drilled and completed to a vertical depth of 12,100 ft. into the pre-Khuff formation. Drilling operations have begun at a fourth well, #870. Directional drilling was conducted to maximize contact by exposing added reservoir over the same thickness and increase production from the same wellbore. Bapco plans to commission four wells along with gas-dehydration units before summer 2010.

11 Iraq

In Iraq’s Kurdistan region, Oil Search Ltd. found oil with #1 Shakal. The company reported that production tests on the exploration well in the Shakal Block flowed 750 to 950 bbl. of 35-degree gravity oil per day from three intervals in the Paleogene Jaddala and Aalije formations between 2,777 and 2,850 meters. Pressure depletion was observed during the tests, and data are being analyzed to develop a program for the block. Oil Search has estimated that the Shakal Block has the potential to contain recoverable reserves of around 250 million bbl. of oil.

12 China

According to E&P Daily, China’s state-owned Sinopec has discovered a gas field near Chongqing in southwestern China. The find’s initial reserve estimate is more than 4.24 trillion cu. ft. of gas, according to a report by Shanghai Securities News. The field was discovered when Sinopec was exploring an area covering 340 square kilometers around Chongqing. Sinopec is headquartered in Beijing.

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