Ivanhoe Mobilizes Rig for 2nd Mongolia Well

- Ivanhoe Mobilizes Rig for 2nd Mongolia Well

Tuesday, September 13, 2011
Ivanhoe Energy Inc.

Ivanhoe and Ivanhoe's wholly-owned subsidiary Sunwing Energy Ltd., announced that Ivanhoe's drilling team has begun moving the drilling rig to the site of the second exploration well in east-central Mongolia.

"Our drilling program was designed to advance our knowledge of Mongolia's Nyalga Basin, a highly prospective area with numerous potential structures that could be tested by drilling," David Dyck, President and Chief Operating Officer, said. "These initial wells are testing two different structures with diverse seismic characteristics."

Mr. Dyck said testing has been completed at the first exploration well, N16-1E-1A, which was drilled to a depth of 2,003 meters. The first well has been plugged and abandoned and the rig disassembled for mobilization.

"While the testing of our first well did not encounter oil shows in the reservoir, it has provided vital information that we are combining with our seismic data to help guide our continuing drilling program."

The second well is on an eight-square-kilometer structure approximately 12 kilometers from the first well. Drilling of the second well is expected to begin by the end of this month toward a target depth of approximately 2,500 meters.

"Mongolia in general, and the Nyalga Basin in particular, is in the early days of oil exploration, requiring a great deal of study to understand its full potential. We remain optimistic that our exploration efforts will enable the discovery of oil resources at our Mongolian project," Mr. Dyck added.

Sunwing Energy Ltd. is party to a Production-Sharing Contract with the Mongolian Government for Block XVI, a 12,679-square-kilometer area that encompasses the Nyalga Basin and is adjacent to the north-south Trans-Mongolian Railway.

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Texon Runs Production Tests at 2nd Eagle Ford Well

- Texon Runs Production Tests at 2nd Eagle Ford Well

Wednesday, August 31, 2011
Global Petroleum Ltd.

Texon has advised that the second Eagle Ford well in which Global has an interest (Tyler Ranch EFS #2H) has tested oil and gas at the rates of 1,488 bopd and 700 mcfgpd (combined 1,605 boepd) through a 16/64" choke at a flowing tubing pressure of 3,000 psi.

The well is located just to the north of the first Eagle Ford well (Tyler Ranch EFS #1H) which had an initial test rate of 1,200 bopd through the same sized choke. Tyler Ranch EFS #2H also has a higher flowing pressure than the first Eagle Ford well. The second Eagle Ford well has been connected for oil and gas production through the EFS #1H production facilities.

Global has a 7.939% working interest (5.95% NRI) in approximately 1,651 acres beneath the Olmos formation including the Eagle Ford Shale. Global's interest in the Leighton prospect also includes a 15% working interest in approximately 873 acres from the surface down to the stratigraphic equivalent of the Olmos formation.

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Testing Begins at Global's 2nd Eagle Ford Well

- Testing Begins at Global's 2nd Eagle Ford Well

Wednesday, August 24, 2011
Global Petroleum Ltd.

Texon has advised that the second Eagle Ford well in which Global has an interest (Tyler Ranch EFS #2H) has been successfully fracked over 17 stages and will now be tested. The recovery of frac fluid will probably take a few days after which Texon will conduct a proper flow test of the well.

Global has a 7.939% working interest in approximately 1,651 acres beneath the Olmos formation including the Eagle Ford Shale. Global's interest in the Leighton prospect also includes a 15% working interest in approximately 873 acres from the surface down to the stratigraphic equivalent of the Olmos formation.

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GeoEnpro Drills 2nd Well in Kharsang Drilling Campaign

- GeoEnpro Drills 2nd Well in Kharsang Drilling Campaign

Monday, August 22, 2011
Jubilant Energy N.V.

Jubilant announced that KPL-C, the second of the seven development wells of the Phase-III drilling campaign in the Kharsang Field, Arunachal Pradesh was spudded on August 22, 2011.

The first development well KSG#57 (previously referred to as KPL-A), which was spudded oJuly 28, 2011, has been successfully drilled within budget and time by 15 August 2011. Based on the Wireline log interpretation results, formation pressure data from Sequential Formation Testing and Side Wall Core results, the consortium has identified four separate intervals totaling to 20 meters of net sand for testing. The well KSG#57 will be tested with the smaller capacity work-over rig which was deployed at the site on 21 August 2011. The testing results are expected within 7 to 10 days from the start of the testing.

KPL-C, the second development well is located in the eastern area of the field and is a step out location to target the shallow C-50, D-00 and also deeper Girujan reservoirs. The well will target structurally higher bright amplitude prospects identified by Seismic in this eastern part of the field. The well will be deviated by approximately 712 meters to the ESE direction from the existing plinth of well KSG-39 and a target depth of around 1224 meters True Vertical Depth ("TVD") with the option of continuing to 1598 meters TVD if appropriate. The well is expected to take four weeks to drill and the estimated cost is approximately USD 2.3 million (USD 0.57 million net to Jubilant).

GeoEnpro Petroleum Ltd., a joint venture of GeoPetrol and Jubilant Enpro (a member of the wider Jubilant Bhartia Group), is the operator of the Kharsang Field. Jubilant holds a 25% interest in the block through its subsidiary, Jubilant Energy (Kharsang) Pvt Ltd. The other members of the consortium are Oil India Ltd and GeoPetrol.

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GeoEnpro Drills 2nd Well in Kharsang Drilling Campaign

- GeoEnpro Drills 2nd Well in Kharsang Drilling Campaign

Monday, August 22, 2011
Jubilant Energy N.V.

Jubilant announced that KPL-C, the second of the seven development wells of the Phase-III drilling campaign in the Kharsang Field, Arunachal Pradesh was spudded on August 22, 2011.

The first development well KSG#57 (previously referred to as KPL-A), which was spudded oJuly 28, 2011, has been successfully drilled within budget and time by 15 August 2011. Based on the Wireline log interpretation results, formation pressure data from Sequential Formation Testing and Side Wall Core results, the consortium has identified four separate intervals totaling to 20 meters of net sand for testing. The well KSG#57 will be tested with the smaller capacity work-over rig which was deployed at the site on 21 August 2011. The testing results are expected within 7 to 10 days from the start of the testing.

KPL-C, the second development well is located in the eastern area of the field and is a step out location to target the shallow C-50, D-00 and also deeper Girujan reservoirs. The well will target structurally higher bright amplitude prospects identified by Seismic in this eastern part of the field. The well will be deviated by approximately 712 meters to the ESE direction from the existing plinth of well KSG-39 and a target depth of around 1224 meters True Vertical Depth ("TVD") with the option of continuing to 1598 meters TVD if appropriate. The well is expected to take four weeks to drill and the estimated cost is approximately USD 2.3 million (USD 0.57 million net to Jubilant).

GeoEnpro Petroleum Ltd., a joint venture of GeoPetrol and Jubilant Enpro (a member of the wider Jubilant Bhartia Group), is the operator of the Kharsang Field. Jubilant holds a 25% interest in the block through its subsidiary, Jubilant Energy (Kharsang) Pvt Ltd. The other members of the consortium are Oil India Ltd and GeoPetrol.

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Buccaneer to Commence Drilling 2nd Well at Kenai Loop

- Buccaneer to Commence Drilling 2nd Well at Kenai Loop

Thursday, August 18, 2011
Buccaneer Energy Ltd.

Buccaneer advised that it is on track to commence drilling of its second well at its 100% owned Kenai Loop project within the next 7 days.

The Company has contracted with Marathon Oil Company for the Glacier Drilling Rig # 1 to be on site for the second well at Kenai Loop, this being the same rig that successfully drilled KL # 1. The rig will mobilize to the location on August 22, 2011 (US time) with the well expecting to spud during that same week.

This second well will be a development well directionally drilled from the same drilling pad as KL # 1. The bottom hole location is expected to be approximately 1,800 feet from that of the KL # 1 well.

In May 2011 Buccaneer drilled the KL # 1 and intersected 26 separate gas pay zones. 2 of these zones were tested being the 9700' and 10000' sands. Due to restrictions on rig availability the Company was unable to test the remaining 24 identified pay zones.

The second Kenai Loop well will have the following primary objectives:

• a step out well to test and possibly extend the known aerial extent of the 9,700' and 10,000' sands;
• flow test additional pay zones (especially those at ~10,600') which were previously untested due to the then rig availability constraints;
• further define reservoir characteristics and reserve potential; and
• complete the well as a second producer in the Kenai Loop field.

The current independent assessment of 2P reserves at Kenai Loop of 38.3 BCF (4.8 MMBOE1) was based solely on the two tested pay zones in the 9,700' and 10,000' sands. The assessed 2P reserves covered an average of 340 acres of drainage area around the KL # 1 well. If the above objectives are successful, the 2P reserves are expected to increase.

The well is expected to take 30 days to reach its target depth of 11,000'. An additional 14 days of testing is anticipated.

Director of Buccaneer Energy, Dean Gallegos said, "The Company is very keen to take full advantage of the recently executed gas sales contract with ENSTAR, which allows for deliveries of up to 15.0 MMCFD.

"The sand in KL # 1 around the 10,600 feet depth look good on the logs and the second well will penetrate these sands in a slightly higher structural position than in KL # 1. These sands and the shallower 9700' and 10,000 foot sands are the most immediate way for us to increase booked reserves and future production capacity.

"In the last 12 months the Company has leased, technically assessed, permitted, execute a gas sales contract and drilled 2 wells. While there will always be delays due to unforeseen circumstances, I think this demonstrates management's capacity to deliver complex projects successfully."

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Trafina Cases 2nd McMullen Vertical Well

- Trafina Cases 2nd McMullen Vertical Well

Tuesday, July 26, 2011
Trafina Energy Ltd.

Trafina announced that its second well in the McMullen area of northeastern Alberta has been drilled, cored, tested and cased. Trafina Martin Hills at 5-28-77-25W4 (5-28) was rig-released earlier this week. The rig is expected to be moved to the third location at 11-28-77-25W4 (11-28) this morning, weather permitting.

The 5-28 well encountered 10 meters of Wabasca A sand. Additionally, the two variables necessary for commercial production, pressure and viscosity, have been quantified. A pressure test performed on the well indicates a bottom-hole pressure between 1,850 and 1,910 kilopascals (kpa) and oil recovered from the core has a viscosity of 22,000 to 26,000 centipoises. As disclosed on July 11, 2011, pressure needs to exceed 1,200 kpa and viscosity needs to be less than 50,000 centipoises. Completion operations are underway and first production could occur in early August 2011.

Although the Wabasca zone could be construed to be a blanket sand, it is not a homogenous reservoir. Industry experience has shown that each well drilled may exhibit markedly different characteristics of pay thickness, porosity, water saturation, pressure and viscosity. Therefore, Trafina intends to announce the results of each vertical evaluation well drilled.

The results achieved with the 5-28 bode well for the success of Trafina's business plan for this rapidly developing core area. The initial well drilled in the McMullen area at 16-28 in early July encountered 8.5 meters of Wabasca A sand and will be completed in due course. If the third well at 11-28 provides the same characteristics as 16-28 and 5-28, it is likely that pod development in at least two quarter sections of section 28 will occur later in 2011.

West Pembina, Alberta

At West Pembina, Trafina's second non-operated Cardium horizontal well has reached total depth, albeit late and over budget as a result of drilling problems. It is anticipated that the well will be completed with a multi-stage fracturing operation as soon as time and ancillary services are available. Trafina has a 25 percent working interest in this well. Two additional Cardium wells are planned for the fourth quarter of 2011 and the first quarter of 2012.

Rangeview/Divide, Saskatchewan

Trafina recently increased its working interest in the Rangeview/Divide area of southwest Saskatchewan from 80 to 90 percent. The 10 percent increase is a result of the settlement of debt owed to Trafina by a working interest partner in the Rangeview/Divide properties.

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American Standard Spuds 2nd Well in Permian Basin Program

- American Standard Spuds 2nd Well in Permian Basin Program

Monday, July 25, 2011
American Standard Energy Corp.

American Standard announced 2nd spud for 10 net well drilling program in Andrews County, Texas.

The JW #5 rig is on location, rigging up and is expected to spud within 24 hours on the University 8 #1 location in Andrews County, Texas.

The Company intends to drill the University Andrews 8 #1 well to the Strawn and completed in the Strawn, Wolfcamp, Spraberry and Lower Clearfork formations. The Company will own 100% working interests in all 10 wells.

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Penspen Lands 2nd PMS Contract with Al-Khafji Joint Operations

- Penspen Lands 2nd PMS Contract with Al-Khafji Joint Operations

Wednesday, July 13, 2011
The Penspen Group

Penspen has been awarded a new five-year contract to provide project management services (PMS) to Al-Khafji Joint Operations (KJO), a joint venture between Aramco Gulf Operations and Kuwait Gulf Oil Company, in its development of the Khafji and Hout Fields on the Kuwait / Saudi Arabia border.

The contract follows on from the previous PMS contract awarded to Penspen by KJO in 2005. The scope of works includes all aspects of managing the engineering, detailed design, procurement and construction of KJO's oil and gas projects in Khafji. Penspen's core project management team will be based on site with a number of satellite teams based in Contractors' offices around the world.

The project is expected to employ approximately 200 people for five years and will include major onshore and offshore Field Development from FEED through Tendering, Detailed Design and Construction. Specific services provided will include:

• Review of Design Basis and Scoping Papers(DBSP) for all KJO Projects
• Supervise FEED Preparation by other Engineering Contractors and issue tender for EPC Contracts
• Commercial and Technical Review of EPC Contractors Bids
• Technical Review and Approval of EPC Contractors Design by Satellite Team
• Follow up Material Procurement and Supervise Construction and Commissioning
• Technical Support to KJO and Satellite Teams from Core Team
• Contract Administration and Project Controls for all KJO Projects

In February this year, Penspen won The British Business Forum Award of Merit at The British Business Forum Excellence Awards in Kuwait for its previous exemplary work on the contract.

Penspen's Director of PMS, Chris Williams, said, "We are delighted to have been re-awarded this contract. Our work in Saudi Arabia for Khafji Joint Operations builds on our many decades of experience in the region. It is one of our key objectives to provide outstanding technical service for our clients, and in doing so, to establish successful long-term client relations. We very much look forward to working with KJO for the next five years."

KJO Executive Director, Projects, Jamal Jaafar, said, "KJO are pleased with Dar/Penspen's previous contract performance and happy to renew this working association for another 5 years. This clearly gives uninterrupted continuity to manage our Industrial Projects in an efficient professional way that we have come to expect from Dar/Penspen, and we wish them success in achieving the new contract objectives."

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PetroVietnam to Start Output at 5 New Fields in 2nd Half

- PetroVietnam to Start Output at 5 New Fields in 2nd Half

Wednesday, July 06, 2011
Dow Jones Newswires
HANOI
by Vu Trong Khanh

State-run Vietnam Oil & Gas Group said that it is starting production at new fields in the second half of the year and beginning construction on a second refinery, as it seeks to increase production to feed its fast-growing economy.

The company, known as PetroVietnam, said it will begin producing at five oil fields, including two that are overseas. The announcement comes amid uncertainty about Vietnam's offshore program due to an increasingly bitter territorial dispute with China, which has involved Chinese harassment of Vietnamese oil prospecting activities.

PetroVietnam said it expects to begin production at Russia's Nenetsky field this month and at Dana field in Malaysia's SK305 Block in August.

Production at Te Giac Trang and the second phase of Dai Hung field will start in August, while output at Chim Sao field will begin in September, it said. The fields are between 100 kilometers and 350 kilometers off Vietnam's southern coast, an area that is far away from the area of dispute with China.

The company reported two new commercial findings in the first half, raising its proven crude oil reserves by 10.2 million metric tons.

Late last month, Vietsovpetro, a joint venture between PetroVietnam and Russia's JSC Zarubezhneft, announced that it had discovered additional oil in the Bach Ho field off Vietnam's southern coast, with tests confirming strong oil flow of 4,560 barrels a day.

Meanwhile, Malaysia's Petroliam Nasional Bhd., or Petronas, said last month that it and PetroVietnam have discovered oil offshore Vietnam, with confirmed oil flow of 5,200 barrels a day.

PetroVietnam said Wednesday that it will continue oil exploration Vietnam's continental shelf in the second half of this year, aiming to raise its proven crude oil reserves by 20 million-25 million tons in the period. It didn't say how large its current reserves are.

Meanwhile, the company said it and its partners will start building the Nghi Son oil refinery in northern Vietnam in the third quarter.

PetroVietnam said previously that it would work with Kuwait Petroleum Corp., Idemitsu Kosan and Mitsui Chemicals on the 200,000-barrel-a-day refinery in Thanh Hoa province.

PetroVietnam is targeting output of 7.8 million tons of crude oil in the January-June period, which will take its full-year output to 15 million tons, flat from last year.

It will sell 7.3 million tons of crude oil in the period, including 1.66 million tons to the Dung Quat refinery, which will likely produce 2.48 million tons of oil products in the second half, taking its 2011 output to 5.6 million tons, the company said.

The 130,000-barrel-a-day refinery is scheduled for a maintenance shutdown for two months starting July 15.

PetroVietnam had pretax profit of VND49.9 trillion in the January-June period, up 44% from a year earlier and meeting 68% of its full-year target, the company said.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Semco Maritime Contracts 2nd Transocean Rig in North Sea

- Semco Maritime Contracts 2nd Transocean Rig in North Sea

Friday, June 17, 2011
Semco Maritime A/S

Two contracts for the world's largest rig company, Transocean, will be carried out in Tromsø and Bergen. This strengthens Semco Maritime's strategy to service clients in the entire North Sea area.

Semco Maritime A/S has won their second order this spring for upgrade of a floating rig, semi-submersible; a project to be carried out in a Norwegian harbor. This latest contract for upgrade of Transocean Winner, strengthens Semco Maritime's strategy to carry out rig projects in any harbor in the North Sea area.

Transocean Winner is a large rig which can operate in water depths up to 1500 meters; it will arrive at a yard and service area in Askøy north of Bergen in August and in the following 45-50 days, Semco Maritime will carry out an extensive upgrade, repair and piping installations to optimize the rig for new projects in the Norwegian sector of the North Sea. The work will be carried out as a close cooperation between the Danish and Norwegian divisions of Semco Maritime and with local sub suppliers. Senior Vice President for rig repair, Hans-Peter Jørgensen, expects around 150 employees from Esbjerg and Stavanger to be working on Transocean Winner during its stay in Askøy.

"We have entered an agreement with Bergen Group, who will provide for yard facilities, personnel, logistics, anchoring and catering. We will carry out this contract employing staff from this partnership," said Hans-Peter Jørgensen.

The contract with the world's largest rig operator, including SPS and upgrade of Transocean Winner worth approximately DKK 100 million, also comprises two options for similar projects.

The project succeeds a smaller Transocean contract for a semi-submersible-rig Polar Pioneer which is being upgraded and repaired in Tromsø at the moment. The rig is scheduled to leave Tromsø again June 19.

"These two contracts are our first rig projects in Norway for a number of years and they are an important step in the right direction to fulfill our strategy of serving Norwegian, British and Danish clients in the entire North Sea area. This is the first time we have the main contract for semi-submersibles, It is an interesting market, as upgrades of this type of rigs is more complex and extensive than upgrade of jack-up rigs," said Hans-Peter Jørgensen.

The main contracts for the two Transocean rigs represent a value of about DKK 200 million and thus contribute to a good start of 2011 in one of Semco Maritime’s main markets.

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Texon Commences Drilling 2nd Eagle Ford Well

- Texon Commences Drilling 2nd Eagle Ford Well

Wednesday, June 15, 2011
Global Petroleum Ltd.

Texon has advised that Tyler Ranch EFS #2H commenced drilling on June 12, 2011. This is the second Eagle Ford well in which Global Petroleum Limited ("Global") has an interest.

Tyler Ranch EFS #2H is located immediately north of the first Eagle Ford well ("Tyler Ranch EFS #1H") which had an initial production rate of 1,200 bopd. The well will have a 4,500 feet horizontal section similar to Tyler Ranch EFS #1H, and it is expected that drilling and casing operations will take 35 days. Fracture stimulation and testing of the well are scheduled for August.

Global has a 7.939% working interest (5.95% NRI) in Tyler Ranch EFS #1H and Tyler Ranch EFS #2H.

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Drillsearch: Drilling Starts at 2nd Well in Western Flank Oil Fairway Prog.

- Drillsearch: Drilling Starts at 2nd Well in Western Flank Oil Fairway Prog.

Tuesday, June 07, 2011
Drillsearch Energy Ltd.

Drillsearch announced that following the success of the Hanson—1 New Oil Field Discovery in PEL 91, Drillsearch's Western Flank Oil Fairway drilling program continues with the spudding of Snellings-1, the second well in the five well program. The Snellings-1 well spudded at 7.00am Monday, 6 June 2011. Drillsearch holds a 60% Interest in PEL 91 while Beach Energy (ASX: BPT) as operator holds 40%. The Hanson Oil discovery is estimated to contain gross recoverable oil of up to 1 million barrels. Drillsearch also holds a 60% interest in this discovery.

Snellings-1 oil exploration well is located 1500 meters north of the Hanson Oil Discovery and 1900 meters south of the Chiton Oil Field. The primary objective of the well is the Namur Sandstone which is the productive oil reservoir in both the Chiton Oil Discovery and the Hanson New Oil Field Discovery announced on May 30, 2011 along with numerous oil discoveries in the adjacent PEL 92 permit to the south of the Snellings prospect. The Birkhead Formation Sandstones, Hutton Sandstone and Poolowanna Sandstones are considered secondary targets for oil and have been proven at the Christies and Sellicks oilfields to the south and south east of Snellings-1. Drilling will be to a total depth of 1935mRT and it is expected that the drilling will take 10-14 days.

Seismic mapping of the Namur horizon indicates that the Snellings Structure has approximately 10 meters of independent structural relief and potentially encloses an area of 1.0km2. The Snellings Prospect is estimated to have up to P10 High-side Recoverable Prospective Resource potential of up to 1.0 million barrels of oil.

Details of the Snellings Prospect are set out in the attached Prospect Data Sheet and accompanying maps and seismic sections.
Snellings-1 will be drilled as a conventional vertical well with wireline logging and possible testing planned after the well reaches total depth. The main target zone is expected to be penetrated five to seven days after spud.

Mr. Brad Lingo, Managing Director noted that "following the success of the Hanson-1 Oil Discovery announced on May 30, 2011, the spudding of Snellings-1, the second well in our five well drilling program is very encouraging. We are progressing on schedule, and we look forward to providing you with further updates on the exploration work we are undertaking in the highly prospective Western Flank Oil Fairway."

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Petroceltic Contracts 2nd Drilling Rig for Algerian Permit

- Petroceltic Contracts 2nd Drilling Rig for Algerian Permit

Tuesday, May 17, 2011
Petroceltic International Inc.

Petroceltic announced the signing of a fully termed contract with KCA Deutag for a second drilling rig on the enlarged appraisal campaign on the Isarene Permit, as outlined in the recent funding announcement. KCA Deutag's Nomad class drilling rig T-211 will work alongside the existing Dalma Rig LR-12 on the Ain Tsila Field appraisal program.

Petroceltic has also signed two contracts for studies in support of the Final Discovery Report. These are with G3Baxi Partnership Limited for field development conceptual studies and with Ove Arup and Partners for a geotechnical study. These studies will assist with initial concept selection and the location of the facilities, infrastructure and pipelines for the Final Discovery Report.

The T-211 rig contract period is for up to three wells and, in conjunction with the existing rig, will allow the enlarged program of a minimum of six appraisal wells to be completed before the end of 2011, allowing sufficient time for the submittal of the Final Discovery Report on the Isarene Permit to the Algerian authorities. The T-211 rig recently completed a program in Algeria for another operator in the Illizi basin and is expected to commence mobilizing to the first well location in June 2011, with drilling operations likely to commence in July 2011.

Brian O'Cathain, Chief Executive of Petroceltic commented, "The contract for the second rig will see a significant increase in the pace of appraisal activity on the Ain Tsila discovery following the recent successful fund raising and the farm out to ENEL. The award of contracts for the conceptual and geotechnical studies is of importance as they mark the start of the move from the exploration and appraisal phases of the production sharing contract into the pre-development phase."

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LNG Energy IDs Gas Shows at 2nd Polish Well

LNG Energy IDs Gas Shows at 2nd Polish Well

Tuesday, April 26, 2011
LNG Energy Ltd.

LNG Energy announced that the Lebork S-1 well, on the Slupsk concession in Poland, has been successfully drilled, cased and cemented to its total depth of 3,590 meters. During drilling, numerous gas shows were recorded over 285 meters of the Lower Silurian, Ordovician and Cambrian shales. The gas shows consisted of mainly methane gas. The strongest gas shows were in the Cambrian shale, although gas shows may have been suppressed in the other shallower intervals due to the full diameter coring operations.

The well was originally drilled to 3,517 meters and had 223 meters of full diameter core recovered. At that time a comprehensive suite of openhole logs were run by Schlumberger. Upon evaluation of the logs, the well was deepened to a final depth of 3,590 meters, whereupon a 2nd suite of logs were run over the additional interval drilled; including the recovery of 113 sidewall cores. The full diameter core and sidewall cores were taken for specialized gas shale core analysis that will fully evaluate the physical parameters of the rock and will be used to calibrate the openhole logs. These analysis will provide, among other data, information on porosity, permeability, total organic carbon, rock eval pyrolysis, thermal maturity, gas composition, micropaleontology, and critical mechanical properties for completion stimulation design.

The two primary shale target intervals were thicker in the Lebork S-1 well than in the previously drilled Wytowno S-1 well. The Ordovician shale interval in the Lebork S-1 well is approximately 91 meters thick, which is slightly thicker than the 83 meters found in the Wytowno S-1 well. The Cambrian shale also thickened to 15 meters from the 9 meters found in the Wytowno S-1 well. This provides further support for the hypothesis of an increasing thickness trend that may continue into deeper portions of the basin.

The comprehensive core analysis is expected to be completed by the third quarter. The analysis of the sidewall cores from the Wytowno S-1 well are also still pending. The suite of Schlumberger openhole logs that were run in the Lebork S-1 well will be recalibrated, using the core data, to more precisely calculate the potential pay sections. The log suite in the Lebork S-1 well currently calculates the highest gas and best properties in the Cambrian shale interval followed by the overlying Ordovician shale interval. The uncalibrated log suites of both wells currently indicate higher gas calculations in the Ordovician interval in the Lebork S-1 well than in the Wytowno #1 well, but this may change after core analysis and the logs are recalibrated. During the third quarter it is anticipated that the completion will be designed and the first intervals in each well will be fracture stimulated.

The cost of the well at rig release, with casing in the ground and including the additional deepening, side wall cores and second set of logs is approximately US $5.6 million. The current estimated cost of the Lebork S-1 well, before completion, but including all future core analysis work, is US $6.5 million. Despite these added costs and due to increased efficiencies, the drilling costs are expected to be only US $0.1 million above the original drilling budget. The rig will stay on location until the end of May at which time it will begin mobilizing to the Starogard concession to begin drilling operations in mid June. The Starogard concession's wellbore will be the 5th successive gas shale well drilled by the same drilling equipment contractor and crew. LNG Energy anticipates further drilling optimization and efficiencies that will be observed in both lower costs and days on location.

Exxon Finds 2nd Oil Field at Indonesia Cepu Block

Exxon Finds 2nd Oil Field at Indonesia Cepu Block

Monday, April 25, 2011
Dow Jones Newswires
by Andreas Ismar

ExxonMobil's Indonesian unit said it has discovered a second oil field at the Cepu Block it operates in East Java Province.

"Its similarity to the other Cepu fields provides confirmation of our exploration strategy on the block, and its proximity to Banyu Urip provides a good opportunity to advance development of this new oil discovery," Mobil Cepu Ltd. President Terry McPhail said.

The well is located about 14 kilometers from Banyu Urip, the first oil field found on the Cepu block in 2001.

The company will analyze data from the newly found Kedung Keris-1 field to evaluate the resource potential of the reservoir.

Mobil Cepu and Ampolex (Cepu) Pte. Ltd., both subsidiaries of Exxon Mobil, have a combined 45% stake in the block, while Pertamina EP Cepu owns 45% and the Cepu Block Cooperation Body, or BKS, holds the remaining 10%.

MicroSeismic Bags 2nd Contract in Marcellus Play

MicroSeismic Bags 2nd Contract in Marcellus Play

Thursday, April 21, 2011
MicroSeismic Inc.

MicroSeismic has been awarded a second BuriedArray™ contract in the Marcellus Shale play in northern West Virginia by Gastar Exploration.

"We are excited about our continued work in the Marcellus," said Peter Duncan, CEO and Founder of MicroSeismic, Inc. "This second award demonstrates the work we are doing in the Marcellus and other plays is creating value for our customers."

Gastar's Vice President and Exploration Manager, Keith Blair, commented, "Gastar has used MSI's FracStar in East Texas and because of the knowledge gained we have decided to implement their BuriedArray in our Marcellus Shale Play. We look forward to optimizing our completion techniques and in turn maximizing our production and minimizing our capital investment from the microseismic data gathered."

Aztec Drills 2nd Liberty County Well

Aztec Drills 2nd Liberty County Well

Monday, April 04, 2011

Aztec O&G Inc.

Aztec announced the successful completion of its first well in Liberty County, the Dyco Blanding #1. Aztec now announces the successful drilling of its second well in Liberty County. The Blackstone 80 #1 well was recently completed in the Cockfield Channel sand that is a known prolific producer in the area. Initial production rates averaged approximately 50 to 60 barrels of oil per day.

"Based on the results of these two wells, we believe we have several additional potential locations for future development in this county," stated Waylan Johnson, President of Aztec Oil & Gas, Inc. Mr. Johnson further stated, "As a result of the foregoing, we anticipate that Aztec will participate in at least 3-5 wells in this field and surrounding areas in 2011."

Noble Energy Seeks 2nd Deep-Water Gulf Drilling Permit -CEO

Noble Energy Seeks 2nd Deep-Water Gulf Drilling Permit -CEO

Tuesday, March 29, 2011
Dow Jones Newswires

by  Ryan Dezember

 

Noble, which late last month received the first permit to drill in the Gulf of Mexico's deep waters since the deadly Deepwater Horizon disaster, is seeking permits to drill another prospect of the coast of Louisiana, Chief Executive Charles Davidson said.

"The outlook for the deep-water Gulf of Mexico is certainly much brighter today than it was a few months ago," Davidson told investors during a conference here. "We continue to see a lot of opportunities to drill in the deep-water Gulf of Mexico."

The Houston oil and gas explorer on Feb. 28 was awarded a permit to resume drilling its Santiago prospect, located in about 6,500 feet of water about 70 miles southeast of Venice, La.

Noble had been drilling the Santiago well, which it owns with BP and private explorers Red Willow Production Co. and Houston Energy Partners, when U.S. regulators shut down deep-water drilling in response to the April 20, 2010 Deepwater Horizon explosion and the subsequent oil spill.

Since giving Noble a permit, U.S. regulators have issued drilling permits for five other deep-water wells, each to a different operators. Noble officials say they expect to begin drilling the Santiago well in the next several weeks.

"We're not over the hump by any means," Davidson said. "There's going to be a lot of work to get the industry back to the full pace that it needs to be, but we're certainly taking some good steps here in the last month or so."

Noble has asked regulators to also let it begin drilling its Deep Blue prospect, which is west of Santiago and was also underway when the government halted such operations, Davison said.

"We're still working through the permitting process on Deep Blue," Davidson said.

Noble was also the first producer to win government permission to complete a well after the Deepwater Horizon disaster, and the company expects production from that well, located near Santiago, to begin late this year or early 2012. Noble's share of its output is expected to be between 7,000 and 8,000 barrels of oil per day, Davidson said.