International Highlights

Sittin’ on top of the world, or at least above the Arctic Circle, may be 44- to 160 billion barrels of oil and 770- to 2,990 trillion cubic feet of gas, according to updated U.S. Geological Survey estimates.

Areas and basins most likely to have reserves, recoverable or not, include Alaska’s North Slope and Chukchi Sea, Canada’s Mackenzie Delta, Russia’s Chukchi Sea, East and West Siberia basins, Timan-Pechora Basin and Karia-Yumal Basin, and shared Norwegian/Russian basin areas (Shtokman Field) in the Barents Sea. Russian territory encompasses the largest estimated-gas-resource areas.

Currently, there is exploration cooperation and noncooperation. According to Petroleum News, Russia’s Gazprom and Norway’s StatoilHydro have cooperation agreements signed to design technology, explore, develop, produce and transport Arctic hydrocarbon resources. Canadian politicians are disputing Danish claims to Greenland offshore licensing territory including Hans Island and other regional areas.

Falling oil and gas prices, the recent international recession, and transportation from a largely uninhabited area to largely habited areas are key issues that may grow or lessen in significance over time.

And then there’s the weather: a rise in global temperature, blamed in some circles on burning hydrocarbons, has caused a thinning of sea ice that may make exploration easier.

—Larry Prado

1 North Sea

An appraisal well by Venture Production Plc of Aberdeen has proven gas in the eastern part of Marram Field in the East Irish Sea. The field is in Blocks 110/4 and 110/9b in Morecambe Bay. Reaching a total depth of 2,020 ft., the well encountered a gross gas column of 469 ft. in Ormskirk sandstone. The discovery lies on trend with both Hamilton and Lennox fields, and is close to the Morecambe Field complex. Additional information was not available at press time.

2 Norway

Drilled in an offshore record 4,515 ft. of water in the Norwegian North Sea, A/S Norske Shell hit gas at its wildcat #6603/12-1. The well was drilled in Production License 326 about 93 miles northwest of the 6506/6-1 Victoria gas discovery. The company aimed to prove petroleum in Upper Cretaceous reservoir rocks in the Gro prospect. The well was drilled to 12,484 ft. and hit a 52-ft. gas column in the Upper Cretaceous. Preliminary estimates by Norway’s Petroleum Directorate indicate between 350 billion and 3.5 trillion cu. ft. of recoverable gas. The well was not formation- or production-tested but extensive sampling and data acquisition have been performed, and further delineation drilling is needed. The well is the first exploration well to be drilled in PL 326, which was awarded in the 18th Licensing Round in 2004. Production license 326 partners are GDF Suez, 10%, StatoilHydro, 40% and block operator Shell, 50%.

3 Norway

German firm Wintershall Norge ASA reported a discovery at the Grosbeak prospect in Production License 378 northeast of Fram Field. The offshore Norway wildcat #35/12-2 proved oil and gas in the Sognefjord formation and oil in the Brent group. Extensive data acquisition and sampling have been performed in both reservoir zones and the discovery is estimated at 38- to 189 million bbl. of oil equivalent in recoverable reserves. The well was drilled in 1,181 ft. of water, reached a vertical depth of 8,242 ft., and was terminated in the Rannoch formation in the Middle Jurassic. License partners are Wintershall, with 40%; Norwegian Energy Company ASA, 20%; Premier Oil Norge AS, 20%; and Spring Energy Norway AS, 20%.

4 Spain

Two new discoveries in the Mediterranean Montanazo-D concession will quadruple Spain’s existing 2,000-bbl.-of-oil daily production, according to Madrid-based Repsol. The wells, #D-5 Montanazo and #1 Lubina, are 45 kilometers off the coast of Tarragona. Repsol, with a 75% stake in #D-5 Montanazo, is the operator and is in a consortium with Gas Natural (17.7%) and Cepsa (7.3%). For the #1 Lubina, Repsol is the sole holder. The #D-5 Montanazo is in 736 meters of water, and reached a total depth of 2,354 meters. Initial tests indicate daily oil production flows of 3,800 bbl. of 32-degree-gravity API crude oil. Repsol’s second discovery in the area is in the Lubina II concession: drilled 4 kilometers to the north of #D-5 Montanazo, the #1 Lubina is in 663 meters of water and was drilled to 2,439 meters. Tests recorded production of 3,700 bbl. of 31.5-degree-gravity API crude oil per day.

5 Israel

According to E&P Daily, Noble Energy’s #2 Tamar appraisal well in the Matan license, offshore Israel, has boosted estimated reserves by about 26%. The well was drilled to 16,880 ft. in 5,530 ft. of water, 4 miles northeast of the #1 Tamar discovery. According to Noble, the gross mean resource estimate for Tamar has been raised to 6.3 trillion cu. ft. Houston-based Noble operates the Matan license with a 36% stake, while Isramco Negev 2 has 28.75%, Delek Drilling has 15.625%, Avner Oil Exploration owns 15.625% and Dor Gas Exploration, 4%.

6 Republic of Congo

Operator Murphy Oil of El Dorado, Ark., reported an oil discovery at the #1 Turquoise Marine prospect in the Mer Profond Sud Block, offshore Republic of Congo. The well was drilled in 1,610 meters of water to a total depth of 3,675 meters and hit more than 41 meters of net oil pay. The discovery is about 28 kilometers from Azurite Field, in which PA Resources is a 35% license partner. The #1 Turquoise Marine is the second discovery in the Mer Profond Sud Block in which PA Resources owns an interest.

7 Angola

Maersk Oil Angola, in its first operated deepwater well, found oil at #1 Chissonga on Block 16, offshore Angola. The discovery is in the western sector of Block 16 in 1,230 meters of water and was drilled to a total depth of 4,725 meters. One production test was conducted, flowing 6,850 bbl. per day of 36-degree API oil on a 36/64-in. choke. Further evaluation of well results is in progress. The #1 Chissonga is the first of a three-well exploration drilling commitment in Block 16, and was drilled to test a post-salt objective. Block 16 partners are Luanda-based Maersk Oil Angola AS, 50%, Sonangol P&P, 20%, Odebrecht Oil & Gas, 15%, and Devon Energy Corp., 15%.

8 Iraq

London-based Gulf Keystone Petroleum has encountered oil in the #1 Shaikan exploration well in the Shaikan Block in the Kurdistan region of northern Iraq. According to IHS Inc., Gulf Keystone found “lighter oil” when it drilled deeper than 4,429 ft. The well, near Dihok, was spudded in April 2009 and is expected to reach planned total depth of up to 11,484 ft. The Shaikan Block covers 283 square kilometers. Partners in the block are Gulf Keystone Petroleum, operator and 75%-working-interest holder, Texas Keystone, a 5% owner, and MOL, 20%.

9 Thailand

According to IHS Inc., oil is flowing at the rate of 840 bbl. per day with a water cut of less than 0.5%, at a shallow volcanic discovery made by Pan Orient Energy in its ongoing appraisal of Block L44/43 in Thailand’s Phetchabun Basin. At a true vertical depth of 610 meters, the #NSE-HE3 encountered a previously untested volcanic reservoir about 45 meters thick. No reserves have been attributed to the volcanic zone, which is a separate pool from the underlying main volcanic reservoir. The new producer was drilled in the northern structure of the central Na Sanun East compartment. In April 2009, the company’s #NSE-H2 was completed flowing about 420 bbl. of oil per day with a water cut of 26%.

10 Vietnam

Drillstem testing by Premier Oil at the Ca Rong Do discovery well in Block 07/03, offshore Vietnam, showed 295 ft. net oil and gas pay within multiple stacked reservoirs. Two zones flowed oil at a combined rate of 3,265 bbl. of oil plus 8.1 million cu. ft of gas per day through a 48/64-in. choke. The well was drilled to 3,801 meters and no water was reported from either zone. The London-based company plans additional surveying and exploration of adjacent structures. A second exploration well on Block 07/03 will be drilled later in 2009. Block 07/03 covers 4,915 square kilometers in the Nam Con Son Basin.

11 Australia

Cooper Energy provided additional information about its #1 Butlers discovery in Australia’s Cooper-Eromanga Basin. The well was drilled to 1,700 meters in PEL 92 license in the basin’s Queensland sector. Wireline logs showed an oil column of about 15 ft. in the Namur formation. Estimates of recoverable oil volumes from #1 Butlers and nearby #2 Butlers are under review. The #1 Butlers well will be cased and suspended as a future producer. Cooper Energy’s headquarters are in South Perth.

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