Salamander Farms Into Gulf of Thailand Block

- Salamander Farms Into Gulf of Thailand Block

Friday, September 09, 2011
Salamander Energy

Salamander Energy plc announced that its fully owned subsidiary, Salamander Energy (Bualuang) Ltd has agreed to farm-in to Block G4/50 in the Gulf of Thailand, earning equity in the acreage from Mitsui Oil Exploration Co Ltd (“MOECO”). Following the completion of the transaction, Salamander will hold a 100% working interest in and operatorship of the acreage, while MOECO will retain certain commercial options in the case of a future discovery. Block G4/50 is located in the western Gulf of Thailand and surrounds the Company’s B8/38 licence that contains the Bualuang oil field and Bualuang East Terrace oil discovery. The farm-in is subject to Thai government and regulatory approval.

Key Points:

G4/50, at over 11,650 sq km, is one of the largest blocks of prospective acreage offshore Thailand. The block surrounds the Salamander-operated B8/38 licence in the western Gulf of Thailand

It consolidates Salamander’s acreage position in an area where it has extensive operating experience and geological knowledge

Major programme of 3D seismic in 2H 2011 will be followed by a multiple well exploration programme

As part of the farm-in agreement MOECO will retain certain commercial options in the case of a future discovery

Exploration expenditures incurred in G4/50 are deductible against tax payable on production revenue from the Bualuang oil field in B8/38

James Menzies, Chief Executive, Salamander Energy, said:

“We are delighted to secure a very substantial area of prospective acreage surrounding our Bualuang operations. Block G4/50 has been of growing interest to Salamander as our geological and subsurface understanding of the immediate play has developed. The region remains under-explored to date and we are looking forward to implementing our work programme, starting with an extensive 3D seismic campaign of over 2,900 sq. km on G4/50 in the fourth quarter of this year.”

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Cambodia Calls for Talks with Thailand on Disputed Oil and Gas Zone

- Cambodia Calls for Talks with Thailand on Disputed Oil and Gas Zone

Tuesday, August 30, 2011
Deutsche Presse-Agentur (dpa)

Cambodia called Tuesday for the newly elected Thai government to resume talks on resolving claims to a 27,000-square-kilometer stretch of seabed considered rich in oil and gas.

The Cambodian National Petroleum Authority, a government body, said it had "a firm commitment to finding an equitable and transparent resolution to the overlapping claims area."

"The [government] would welcome the resumption of open and official negotiation on this issue and will pursue such a course as soon as practicable," it said.

The statement marked the second time in little more than a month that Cambodia has sought to restart the talks.

The authority said discussions held from 2001 to 2007 had been "fruitful," adding that the government of Abhisit Vejjajiva, which took power in 2008 and had rocky relations with Phnom Penh, had sought to resolve the dispute prior to this year's election.

To that end, it said, Bangkok and Phnom Penh had held secret talks to try to reach a deal.

A number of major oil companies have signed exploration deals with Cambodia in the Gulf of Thailand, including the US firm Chevron Corp and France's Total SA.

In 2001, the two nations signed an agreement that outlined their joint management of resources in the disputed zone, but the details have yet to be worked out.

Cambodia hopes to reap a windfall from oil and gas revenues that could transform the impoverished nation.


Copyright 2011 dpa Deutsche Presse-Agentur GmbH

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Coastal Makes Oil Find Offshore Thailand

- Coastal Makes Oil Find Offshore Thailand

Friday, July 29, 2011
Coastal Energy Co.

Coastal Energy announced the successful results of the first exploration well drilled at Songkhla H and the results of initial production testing on the Bua Ban North B-06 and B-08 wells.

The Songkhla H-01 well was drilled to a total depth of 9,256 feet TVD and encountered 32 feet of net pay with 20 percent porosity in the Oligocene interval. A drill stem test was performed and the well produced 1,000 bopd with minimal initial pressure drawdown of the reservoir. The crude has an API gravity of 29 degrees. The H-01 well has the potential to produce in excess of 3,000 bopd using an electric submersible pump ("ESP"). The Company has spudded an appraisal well to delineate the reservoir.

The Bua Ban North B-06 and B-08 wells have been completed using ESPs and are producing approximately 2,000 bopd each from the Miocene interval. Flow rates will be restricted to these levels to minimize drawdown on the formation. The crude has API gravity of 29 degrees and is of quality consistent with current production. The Company is currently completing the B-01 well in the Oligocene formation. The B-06 well began producing on July 20th and the B-08 well began producing on July 27th.

Randy Bartley, Chief Executive Officer of Coastal Energy, commented, "We are extremely pleased with the results of both the Songkhla H-01 and the production testing at Bua Ban North B. The Songkhla H-01 well was drilled in the center of the basin where sand risk is the highest. Encountering sand of this quality in the basin center is very encouraging and opens up significant additional exploration potential.

"The initial flow rates from the B-06 and B-08 wells are performing above our expectations. We are proud to announce that we have been able to bring the Bua Ban North B field on production less than three months after the initial discovery well was drilled."

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Salamander Strikes Oil Offshore Thailand

- Salamander Strikes Oil Offshore Thailand

Monday, June 27, 2011
Salamander Energy plc

Salamander provided the following update on its current drilling activity in Thailand, including the announcement of a material oil discovery in the East Terrace prospect.

B8/38 License (Salamander 100%, operator)

The current drilling program, using the Ocean Sovereign jack-up rig located on the Bualuang Wellhead Platform ("WHP"), includes three new horizontal production wells, two horizontal sidetracks of existing wells and a pilot hole to test the East Terrace prospect. To date, two producers have been drilled and completed and the East Terrace exploration pilot hole drilled.

East Terrace Oil Discovery

A long reach well was drilled from the WHP to 2,961m measured depth to test the East Terrace fault block. This well encountered approximately 35 meters of net oil pay within three zones. Over 6 meters of net pay was encountered in the upper T5 sandstone interval. In the deeper T4 interval (the main reservoir unit in the Bualuang oil field) an additional 18 meters of net oil pay was encountered, while in the lower T3 interval a further 11 meters of net pay was found.

A full evaluation program including pressure measurements and fluid sampling was conducted over the intervals of interest, confirming the East Terrace as being a separate accumulation to the main field, with a different oil viscosity, gas/oil ratio and oil-water contact than the main Bualuang field. The preliminary evaluation of the data indicate a mid-case estimate of 50 MMbo in-place and a most likely recoverable volume in the range 8 - 14 MMbo. This range represents the high end of pre-drill estimates.

Bualuang Development Drilling

The development drilling program commenced on April 22nd, having been delayed due to administrative issues and necessary repairs to the rig's legs. To date, two of the five development wells planned for this phase of development have been completed and brought on stream, including a long-reach well into the previously undrilled northern area of the Bualuang structure. At this location the top T4 main reservoir came in some 4 meters high to prognosis, offering scope for an upgrade to gross rock volume and hence reserves for the field overall.

The next two development wells in the Bualuang field are to be completed, as planned. The final horizontal producer will be completed either in the East Terrace or in main body of the field, subject to a decision based on analysis of data acquired from the East Terrace exploration pilot hole.

Following this development drilling campaign, the Ocean Sovereign jack-up rig will be moving off location for a scheduled inspection and certification.

During the fourth quarter of 2011, a sidetrack of an existing well will be conducted with a workover rig (under an existing contract). In addition, Salamander is currently preparing to tender for another jack up rig to complete the exploration campaign in B8/38, which is now anticipated to take place in 4Q 2011.

Block L15/50 (Salamander 50%, operator)

The Dao Ruang-3 appraisal well was spudded on 25th April and to date has reached a depth of approximately 1,590 m measured depth. The well encountered difficulties while drilling the Kuchinarai shale interval. The well has been sidetracked twice in order to by-pass the shale which it has now done. With the challenging shale formation now behind casing, drilling will continue to the planned total depth of approximately 2,565 m MD in order to test the Pha Nok Khao target interval. Approximately 14 days of additional drilling time is anticipated in order to complete the well.

Commenting on the progress of the B8/38 drilling program, James Menzies, Chief Executive, said, "We are pleased to deliver a material oil resource addition through the exploration drill bit, at the top end of pre-drill estimates. The ability to immediately tie-in to nearby infrastructure means these are high value barrels, which we expect to book and which will lead to a sharp upward revision to Bualuang reserves.

In addition, the development wells, though delayed, are performing in-line with our expectations, giving us further confidence in our ability to predict the behavior of the Bualuang field reservoir."

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Thailand's Natural Gas Reserves to Run Out in 18 Years

- Thailand's Natural Gas Reserves to Run Out in 18 Years

Wednesday, June 01, 2011
Knight Ridder/Tribune Business News
by Watcharapong Thongrung, The Nation, Bangkok, Thailand

Thailand's natural-gas reserves are estimated to be enough for only 18 more years if no new reserves are found, said Kurujit Nakornthap, deputy permanent secretary of the Energy Ministry.

He made the remark yesterday (May 31) at a seminar on Thailand's energy outlook. He said the current natural-gas reserves, both proven and probable, stand at 23 trillion cubic feet. If production is maintained at the rate of 3,747 million cubic feet per day (MMcfd) and no new reserves are found, the current reserves will run out in 18 years.

He added that the ministry had given priority to seeking new resources to ensure national energy stability.

He added that of the country's proven petroleum reserves as of 2009, natural gas stood at 11.026 trillion cubic feet, condensate at 255 million barrels, and crude oil at 180 million barrels. Of total probable reserves, the natural-gas amount stood at 6.170 trillion cubic feet, condensate at 86 million barrels, and crude oil at 170 million barrels.

This year natural-gas production in Thailand in many fields is expected to reach a combined 3,717MMcfd, up from 3,511MMcfd, while the demand from many industrial sectors is estimated at a combined 4,006MMcfd, down from 4,039MMcfd last year.

The high demand for natural gas means Thailand is expected to import 702MMcfd from Burma this year.

Kurujit said one threat to the country's energy security was its over-dependence on natural gas for generating electricity. It is estimated that natural gas this year will account for 71 percent of all energy sources used for electricity generation. Coal-fired power plants and proposed nuclear plants face opposition from communities.

Department of mineral fuels director-general Songpop Polachan said it would rapidly seek additional domestic petroleum sources through the planned granting of new concessions, the promotion of production in small petroleum fields, and a feasibility study on the production of natural gas from high-carbon-dioxide fields.

Copyright (c) 2011, The Nation, Bangkok, Thailand / Asia News Network

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PTTEP Lines Up Seadrill Jackup Offshore Thailand

- PTTEP Lines Up Seadrill Jackup Offshore Thailand

Tuesday, May 31, 2011
Seadrill Ltd.

Seadrill has been awarded a new contract by PTTEP in Thailand for the jackup rig West Leda. The assignment is for a firm period of nine months and with an option to extend for a further six months. The contract value for the firm period is approximately US $35 million. Commencement of the operations under the new contract is scheduled for late second quarter 2011, in direct continuation of the rig's existing contract.

Alf C Thorkildsen, Chief Executive Officer in Seadrill Management AS, said, "We are pleased to secure a new contract for one of our jack-ups in the South East Asia region. We consider this as an excellent opportunity to further strengthening our relationship with PTTEP, one of our key customers. Representing a total contract value of US $35 million, this assignment improves the earnings visibility for our jack-ups."

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Vantage Adds to Jackup Backlog with Thailand Contract

Vantage Adds to Jackup Backlog with Thailand Contract

Wednesday, May 11, 2011
Vantage Drilling Co.

Vantage Drilling Co. announced Wednesday that it has received a letter of award for an 18-month drilling program in Thailand for the Emerald Driller.

The contract will commence in continuity with the completion of the Emerald Driller's current contract. Estimated revenues to be generated over the initial term of the contract are approximately $72 million.

Paul Bragg, President and Chief Executive Officer, commented, "We are pleased to add significant additional backlog to the jackup fleet, with Emerald Driller continuing work in Thailand."

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with an owned fleet of four Baker Marine Pacific Class 375 ultra-premium jackup drilling rigs and the ultra-deepwater drillship, the Platinum Explorer, as well as an additional ultra-deepwater drillship, Tungsten Explorer, now under construction Vantage's primary business is to contract drilling units, related equipment and work crews primarily on a dayrate basis to drill oil and natural gas wells. Vantage also provides construction supervision services for, and will operate and manage, drilling units owned by others. Through its fleet of seven owned and managed drilling units, Vantage is a provider of offshore contract drilling services globally to major, national and large independent oil and natural gas companies.

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Coastal Hits Pay Offshore Thailand

Coastal Hits Pay Offshore Thailand

Tuesday, May 10, 2011
Coastal Energy Co.

Coastal Energy Co. on Tuesday announced the successful results of the Bua Ban North B-02 exploration well.

The Bua Ban North B-02 well was drilled to 6,513 feet TVD and encountered 62 feet of net pay in the Miocene objective with 26% average porosity. The B-02 well also tested the Eocene interval and encountered 150 feet of net sand with 19% average porosity. The Eocene sand zone was wet as it was not a target in this well and was drilled off structure.

The B-02 has been cased and suspended pending the arrival of testing equipment. Conductor pipe has been set on the B-03 well, which is testing the Miocene in a separate fault block due east from the B-02 well.

Randy Bartley, Chief Executive Officer of Coastal Energy, commented:

"The B-02 well encountered thicker sands in the Miocene than were anticipated with better than expected reservoir quality. The Eocene zone which was encountered was not a target in this well, but delivered the highest reservoir quality sands we've seen to date in the Eocene interval. The reservoir characteristics in the Eocene are better than what we have modelled at this depth. This supports our thesis of higher quality sands in the shallower Eocene and should bode well for the planned drilling of the shallower Eocene prospects to the northwest."

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Carnarvon Boosts Reservoirs in Thai Concessions

Carnarvon Boosts Reservoirs in Thai Concessions

Friday, April 08, 2011

Carnarvon Petroleum Ltd.

Carnarvon announced the results of an independent reserves evaluation of its Thailand concessions as at December 31, 2010.

Carnarvon has a 40% equity interest in the SW1, L33/43 and L44/43 on-shore concessions (Pan Orient Energy Corp. 60%). The reserves estimates data has been certified by international energy consultants Gaffney, Cline and Associates (GCA).

At the end of the calendar year, proved and probable reserves at Carnarvon's Thailand concessions totaled 20.4 million barrels. This comprised proved reserves of 4.7 million barrels plus probable reserves of 15.7 million barrels.

The estimates include new oil field discoveries in 2010 in the Wichian Buri Extension (WBExt) field within the L44/43 concession and the L33 field in the L33/43 concession. The increase in reserves in these fields was offset by a downward revision of previously announced reserves in the NSE Central and NSE-F1 fields within the L44/43 concession. Carnarvon indicated the potential for the downward revision at these two reservoirs in October 2010.
The net present value of proved and probable reserves after tax for the three concessions in Thailand, using forecast oil prices and discounted at 10%, is A$307 million, representing A$0.45 per Carnarvon share, based on the current 687.8 million shares outstanding and an exchange rate of A$1.00 / US $1.04.

CEO Comment

Carnarvon CEO Ted Jacobson said, "These reserves estimates provide us with a much better understanding of this series of oil fields and give us greater confidence in the assessment of remaining oil.

"These are important assets for Carnarvon; they provides us with important cash flow and exploration and appraisal upside whilst enabling us to continuing to focus on upside via exploration and acquisitions in other regions.

"While we expected the revisions in reserves for the NSE Central and NSE-F1 reservoirs, the greater percentage of more conventional sandstone reservoirs means a longer, more consistent and predictable production for Carnarvon moving forward once these sandstone reservoirs have been fully developed.

"We have a long future in this range of assets and are excited about the broader opportunities for Carnarvon that the long term positive cash flows can achieve," said Mr Jacobson.