Cooper Begins Butlers-4 Drilling

- Cooper Begins Butlers-4 Drilling

Monday, September 12, 2011
Cooper Energy Limited

Cooper Energy Limited announced that the Butlers-4 appraisal/development well in PEL92 spudded at 11:30 pm Sunday. The current operation is drilling ahead in the surface hole at 135 meters.

Butlers-4 is the third appraisal/development well on the Butlers Oil Field in the current PEL92 drilling program. Butlers-4 is targeting the Namur oil reservoir in the crestal part of the field 0.26km to the southeast of the Butlers-1 discovery well. The well will be drilled to a total depth of about 1,390 meters and is expected to take 9 days to drill and complete.

The Butlers oil field is currently producing approximately 1,400 barrels of oil per day from the Namur reservoir from the Butlers-1 well with Butlers-2 and Butlers-3 yet to be completed. It is expected that Butlers-4 will accelerate production as well as draining previously unaccessed reserves. The Butlers surface facilities will be upgraded to handle the increased production. Oil production from Butlers is exported via the pipeline to Tantanna and then exported to Moomba.

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Reliance Industries Confident of Unlocking Field Potential with BP

- Reliance Industries Confident of Unlocking Field Potential with BP

Friday, September 09, 2011
Dow Jones Newswires
NEW DELHI
by Rakesh Sharma & Saurabh Chaturvedi

Reliance Industries Ltd. (500325.BY) Friday said it was confident of unlocking the full potential of its prolific east coast gas field and other blocks with the help of its partner BP Plc (BP).

The country's largest private explorer is fighting a decline in gas output at its D-6 Block in Krishna Godavri Basin. Reliance on Aug. 30 closed a deal with U.K.-based BP Plc to sell a 30% stake in its 21 oil and gas exploration blocks in India.

Last month, India's junior oil minister R.P.N. Singh said that gas production from Reliance's KG-D6 block during the April-June quarter was 31% below plan. Reliance's average gas production during April-June from the block was 48.60 million standard cubic meters per day.

Based on the approved field development plan, the output should have been 70.39 mmscmd, the minister said.

India's federal auditor Thursday said Reliance Industries had violated the KG D6 production-sharing contract with the government.

The Comptroller and Auditor General said Reliance initially estimated its capital expenditure for the D-1 and D-3 gas discoveries in the block at $2.4 billion, but revised it to $8.8 billion. The company also started implementing the revised plans before the government approved them.

The Mukesh Ambani-controlled company said it had engaged global consultants Ernst & Young, IPA Inc. and Daniel Johnston & Co., who didn't find any irregularity in its capex and management of the block.

Reliance said it commenced gas production from KG-D6 in six-and-a-half years from discovery, in comparison to the global average of nine to 10 years for similar deep-water production facilities.

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

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Technip Lands EPC Gig for Satah Full Field Development

- Technip Lands EPC Gig for Satah Full Field Development

Thursday, September 08, 2011
Technip

Technip, in consortium with NPCC, was awarded by ZADCO an engineering, procurement and construction lump sum contract, worth a total of approximately $500 million (Technip part of the contract: 35%), for the Satah Full Field Development project. This field is located 200 kilometers northwest of Abu Dhabi, United Arab Emirates.

The Satah Full Field Development project's objective is to maximize crude oil production and oil recovery by reducing the well heads' back pressure and introducing of gas injection and gas lift facilities.

The project scope involves offshore brownfield works to the existing well head platforms and production manifold platform, installation of infield pipelines, as well as modifications and installation of new facilities at the Onshore Satah plant at Zirku Island.

This project award is the recognition of our expertise in the growing brownfield projects market in the Middle-East, said Arturo Grimaldi, Senior Vice President of Technip in the Middle East. It also reflects the confidence of our client ZADCO in the strong consortium that we form with NPCC.

Technip's operating center in Abu Dhabi will execute the engineering and procurement activities while construction and installation activities for offshore works will be performed by NPCC. The Onshore construction activities will be carried out jointly by the consortium companies.

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BP Unleashes Additional Reserves at Mad Dog Field

- BP Unleashes Additional Reserves at Mad Dog Field

Wednesday, September 07, 2011
BP plc

BP announced the drilling of a successful appraisal well in a previously untested northern segment of the Mad Dog field in the US Gulf of Mexico.

The well results confirm a significant resource extension for the Mad Dog Field complex, which includes the existing field, in production since 2005, and appraisal drilling of the Mad Dog South field in 2008 and 2009. Pending confirmation through future appraisal drilling, the total hydrocarbons initially in place in the Mad Dog field complex are now estimated to be up to four billion barrels of oil equivalent.

The well, drilled by BHP Billiton on behalf of the unit operator BP, is located on Gulf of Mexico Green Canyon block 738 approximately 140 miles (225 kilometers) south of Grand Isle, LA., in about 4,500 feet (1,371 meters) of water. The well encountered about 166 net feet (50 meters) of hydrocarbons in the objective Miocene hydrocarbon-bearing sands and discovered an oil column of more than 300 feet (91 meters). Transocean's semisub GSF Development Driller I was used to drill the Mad Dog well.

"With these additional hydrocarbon resources north of the main field, Mad Dog has been firmly established as a giant field in BP's Gulf of Mexico portfolio, rivaling Thunder Horse in size of resource," said Bob Dudley, BP group chief executive. "Working with the industry and regulators, we will apply our enhanced standards of safety, reliability and compliance to all of our Gulf activities as we continue to provide important jobs and energy to the nation."

BP maintains a 60.5 percent working interest in Mad Dog. BHP Billiton has a 23.9 percent interest, Chevron Corporation, through its subsidiary Union Oil Company of California, has a 15.6 percent interest.

Due to the materiality of the Mad Dog South finds in 2009, BP has been advancing development options to increase production from Mad Dog by adding another spar production facility with a production capacity of 120,000–140,000 barrels of oil equivalent per day (boed).

"Coupled with the recent exploration success at the discovery at the Moccasin prospect, located in Keathley Canyon, the Mad Dog result re-emphasizes the exploration and development potential of the Gulf of Mexico and the region’s ability to continue to deliver material projects for BP," Dudley added.

On Sept. 6, 2011 Chevron Corporation announced the Moccasin discovery in the Lower Tertiary play on Keathley Canyon block 736. BP has a 43.75 percent working interest in the Moccasin prospect. The prospect is operated by Chevron U.S.A. Inc., also with a 43.75 percent interest, and the co-owner is Samson Offshore Company with 12.5 percent interest.

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Cooper, Beach Make New Oil Field Discovery

- Cooper, Beach Make New Oil Field Discovery

Tuesday, September 06, 2011
Cooper Energy Ltd.

Cooper Energy announced that Germein-1 in PEL92 has made a new oil field discovery.

Wireline logs have confirmed that Germein-1 discovered a 2.5 meters net oil column in the Namur Sandstone formation. The recoverable volumes will be estimated after the productive performance of the well has been observed.

Germein-1 has been suspended as a future PEL92 production well that will be tied into the PEL92 production system.

The rig will be moved to Butlers-4 well location. Butlers-4 is an appraisal/development well on the Butlers Oil Field. Further information on Butlers-4 well will be made at the appropriate time.

Joint Venture Participants are Cooper Energy (25%) and Beach Energy (75% and Operator).

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ConocoPhillips Completes Shutdown of Bohai Bay Oilfield

- ConocoPhillips Completes Shutdown of Bohai Bay Oilfield



Sep 6, 2011

ConocoPhillips China (NYSE:COP) has completed the shutdown of its Bohai oilfield operations, as ordered by China marine authority.

The company says it will continue to work with CNNOC (NYSE:CEO), which holds a 51% stake of in the oil field, to develop a plan to reduce reservoir pressure to ensure the safety of the field

ConocoPhillips (NYSE:COP) has a potential upside of 24.6% based on a current price of $66.44 and an average consensus analyst price target of $82.8.

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BP Gets Govt OK for Kinnoull Field Development

- BP Gets Govt OK for Kinnoull Field Development

Tuesday, September 06, 2011
BP plc

On behalf of its co-venturers BP announced an agreement to invest up to £700 million to progress a project to develop the Kinnoull reservoir in the central North Sea.

Kinnoull is the largest of three reservoirs that are being developed as part of the Andrew Area developments project, and contains 45 million barrels of oil equivalent. The reservoir will be connected to BP's Andrew platform and enable production to be extended to 2020 and beyond.

Production from Kinnoull is forecast to peak at 45,000 barrels per day and be exported via the existing Forties pipeline system to Kinneil and the CATS pipeline system to Teesside.

Trevor Garlick, Regional President for BP's North Sea business said, "The Kinnoull project is a further demonstration of BP's vision to sustain a material and high quality business in the North Sea region. It is also a showcase for the outstanding subsea expertise that exists within the UK. At its peak the project will create employment for over 1,000 people in the UK."

Charles Hendry, Minister of state for Energy and Climate Change said, "I am pleased to see that BP is taking forward the development of the Kinnoull field. With around 90% of the development involving UK firms, this is a real big win for our domestic supply chain and shows that the thriving North Sea oil and gas sector continues to deliver economic benefit. I hope major global players continue to harness the expertise of UK companies as new developments come forward."

In order to access the new reservoir, the project will install a new subsea system and caisson onto the Andrew platform. The backbone of the subsea system will be 4 subsea bundles with a total length of 28 km - the longest bundle system in the world - which will carry the fluids to the Andrew platform for processing. The bundle system is being fabricated by Subsea 7 at its facility in Wick, Scotland.

To accept the new Kinnoull production fluids, and to facilitate the production from the Lower Cretaceous reservoir below the Andrew reservoir, the Andrew platform will undergo major modifications including the addition of a 750 ton process module. Construction will be completed over 2 years, with the flotel Borgholm Dolphin on location throughout. The Andrew platform is expected to be shut down for 18 months during this campaign during which time operational work will also be undertaken to maintain the efficiency and integrity of the existing Andrew platform facilities.

The new facilities are scheduled to commence production in 2013.

BP owns 77.06%, with other interests as follows: Eni (16.67%); Summit (6.27%)


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Frontera Commences Drilling Ops at Georgia Field

- Frontera Commences Drilling Ops at Georgia Field

Tuesday, September 06, 2011
Frontera Resources Corp.

Frontera announced commencement of new drilling operations at the Mtsare Khevi Field within its Shallow Fields Production Unit, Block 12, in the country of Georgia.

Site preparation and mobilization of drilling equipment were completed in late August and drilling is currently underway at the Mtsare Khevi #31 development well location. The #31 well is the first of a planned twenty well program over the next twenty four months designed to exploit multiple Upper Pliocene sandstone reservoirs situated at a depth of approximately 300 meters. In addition, efforts are underway to implement a pump optimization program designed to enhance production from existing oil wells within the field. Planning is also progressing related to a previously disclosed infrastructure project designed to initiate gas sales from currently shut-in gas wells within the field.

The Mtsare Khevi Field, which Frontera operates with 100% interest, is located in the western portion of the Shallow Fields Production Unit and currently delivers approximately 90 barrels of oil per day from its shallow reservoirs. Twenty new well locations have been identified for ongoing low-cost drilling, targeting both oil and gas reservoirs and providing for reservoir pressure support through three proposed water injection wells.

The independent engineering firm of Netherland, Sewell & Associates "NSA" places a "Best Estimate" for gross original oil-in-place for the Mtsare Khevi Field of 14.9 million barrels, with a "low"-to-"high" range of 11.3-19.7 million barrels; and a "Best Estimate" for associated recoverable gross contingent and unrisked prospective oil resources of 2.1 million barrels, with a "low"-to-"high" range of 1.4-3.2 million barrels. This assessment is generally consistent with Frontera's internal estimates.

For gas, NSA places a "Best Estimate" for gross original gas-in-place for the Mtsare Khevi Field of 2.6 billion cubic feet, with a "low"-to-"high" range of 2.1-3.1 billion cubic feet; and a "Best Estimate" for associated gross contingent and unrisked prospective resources of 1.5 billion cubic feet, with "low"-to-"high" range of 1.2-1.9 billion cubic feet. Frontera's internal estimates reflect additional resource potential along the northwest trend of the field's fault block, which NSA have not yet been asked to evaluate.

The Shallow Fields Production Unit is located in the central portion of Block 12 and represents what the Company believes to be an extensive trend of low-cost, low-risk oil and gas resources. The unit contains a number of known oil fields; Mirzaani, Mtsare Khevi, Nazarlebi and Patara Shiraki, representing undeveloped or under-developed fields that have additional associated exploitation potential. The unit also contains an inventory of "look-alike" exploration prospects, the Kakabeti, Lambalo, Mkralihevi, Mlashiskhevi-Oleskhevi and Tsitsmatiani prospects, each of which contains Soviet-era wells that had hydrocarbon shows while drilling, but were never placed on production or adequately appraised. Reservoir objectives are the well-known, regional clastic reservoirs of Pliocene and Miocene age, situated at depths from 10 meters to 1,500 meters.

Further to the successful completion of the recently announced equity financing package, the new drilling campaign at Mtsare Khevi Field is part of an overall plan whereby Frontera intends to increase production from its portfolio within Block 12 from 225b/d to c.5,000b/d over the next two years,

Steve C. Nicandros, Chairman and Chief Executive Officer, commented, "The commencement of drilling operations, which began in August at the Mtsare Khevi Field, represents the launch of an exciting and extensive drilling campaign at this undeveloped, low-cost asset. Like the other assets within the Shallow Fields Production Unit, this field represents near term value realization and reserve additions for our company."

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GPC OKs Commencement of FEED Work at Galoc Field

- GPC OKs Commencement of FEED Work at Galoc Field

Monday, September 05, 2011
Otto Energy Ltd.

Otto reported an announcement by the Galoc Production Company (GPC) regarding approval to commence the Front End Engineering and Design (FEED) work and the acquisition of new 3D seismic in support of the planned Phase II development at the Galoc Oil Field (Galoc).

The FEED work will determine the exact locations and number of additional wells to be drilled, expected to commence in 2013. The new 3D seismic will support the placement of Phase II wells in the reservoir and de-risk capital expenditure.

Otto currently owns an 18.78% holding in Galoc through GPC. Otto has entered into an agreement to increase its interest to a direct 33.00% in Galoc, including 100% ownership of GPC, and to assume control of the operator of the field. Completion of the agreement is scheduled to occur prior to 30 September 2011.

Otto's Acting CEO Matthew Allen said, "These two approvals are key steps in the Phase II development of the Galoc Oil Field which we are currently on track to sanction in mid-2012. Given Otto's recent agreement to assume control of the operator and become the largest shareholder in Galoc, the development of Phase II is a core focus for Otto and we are very pleased with progress to date.

"The Galoc Oil Field recently produced its eight millionth barrel of oil and delivered its 23rd cargo. With the upgrade of the mooring and riser system for the FPSO Rubicon Intrepid expected to occur in the fourth quarter of 2011, the field's performance continues to reinforce our confidence in its reserves and future production."

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Det norske Submits First PDO as Field Operator

- Det norske Submits First PDO as Field Operator

Monday, September 05, 2011
Det norske Oljeselskap

Det norske will present a plan for development and operation (PDO) of Jette to the Minister of Petroleum and Energy Ola Borten Moe, Monday. The PDO will be submitted on behalf of the partners in the Jette Group, which in addition to Det norske includes Petoro, Dana Petroleum and Bridge Energy.

Erik Haugane, CEO of Det norske, said it is a big and important decision for the company to submit a PDO for Jette. "This is a small development relative to other North Sea-projects, but it is our first field development as operator. We believe it is best to start off with a small-scale development before moving on to bigger projects, like Draupne. In a few years, we could also become a significant operator of field developments off Norway."

Jette is a small field located in the North Sea, just east of the Jotun Field. Jette will be produced with two horizontal wells, tied back to the Jotun floating production storage and offloading vessel (FPSO). Jette is a very good example of what the government describes as time-critical resources.

"Even though Jette is a small development, it still represents value for the companies and the Norwegian society. Det norske believes that oil companies should also take on these projects," said Haugane

First oil in 2013

Jette contains about 14 million barrels of oil equivalents, based on a 30 percent recovery rate. Daily production the first year will be approximately 14 000 barrels, of which some 9 000 barrels will accrue to Det norske. Estimated development costs of Jette is approximately 2,5 billion NOK. Given the current oil price, Jette may generate gross revenues of 8 billion NOK. Operational costs are lower compared to typical operating costs of stand-alone developments and therefore enhancing the profitability of the development. Production startup is set to 1st quarter 2013.

Through a share issue last week, Det norske strengthened its equity ahead of developing Jette. Field development and operation will be led by Det norske in Trondheim, while daily monitoring of operations is carried out by ExxonMobil.

The partners in Jette are Det norske (63.3 percent, operator), Dana Petroleum (19.2 percent), Bridge Energy (6.0 percent) and Petoro (11.5 percent).

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Jubilant Reports Testing Results for Kharsang Field in India

- Jubilant Reports Testing Results for Kharsang Field in India

Monday, September 05, 2011
Jubilant Energy N.V.

Jubilant announced the testing results of the first development well KSG-57 (earlier referred to as "KPL-A") drilled under the Phase-III development drilling campaign in the Kharsang field. The well was spudded on July 28, 2011 and was successfully drilled to 875 meters measured depth (800 meter true vertical depth) on 15th August 2011, on time and within budget. The well was tested with a smaller capacity work-over rig, which was deployed at the site on August 21, 2011.

Based on wireline log interpretation results, formation pressure data from Sequential Formation Testing and Side Wall Core results, the consortium identified four separate intervals, totaling 20 meters of net sand, for testing of shallow C-50 and D-00 Girujan targeted reservoirs.

Upon testing the D-00 sands interval between 786-793 meters and activation through swabbing, the well started self-flowing. The well is presently flowing through 5.56 millimeter choke at a rate of around 170-180 barrels of oil per day (bopd), with Gas-Oil-Ratio of 30 volume by volume and maximum flowing tubing head pressure of 11 Kg/cm2. The initial results are as expected and encouraging. The production from the well is being sent to the Oil Collecting Station (OCS) for further processing.

The KSG-57 well will continue to remain under extended production testing to carry out a multi choke study till production is optimized. The testing of the remaining 11 meters of the two shallower sands will be completed at a later date.

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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China Ocean Watchdog Orders Operations Halt at Penglai 19-3 Oil Field

- China Ocean Watchdog Orders Operations Halt at Penglai 19-3 Oil Field

Friday, September 02, 2011
Dow Jones Newswires
BEIJING
by Wayne Ma

China's State Oceanic Administration said Friday it is ordering a halt to all drilling and oil and gas production at the Penglai 19-3 oil field at Bohai Bay, which is operated by ConocoPhillips China.

The directive comes amid mounting public criticism against the U.S. oil company that it has been slow to act and provide information about oil spills at the field beginning in early June.

ConocoPhillips submitted a report Wednesday to the SAO and said it believed it had satisfied all the requirements laid out by the SOA for cleaning up and investigating the spill.

A ConocoPhillips spokesman said the company couldn't immediately respond to the statement, which was posted on the SOA's website.

Conoco must submit a marine environmental impact report and won't be able to restart operations until it receives approval, the SOA said.

The U.S. company hasn't satisfied the requirements for cleaning up and investigating the oil spill, it said, adding that Conoco was slow to act on the plan to clean up and investigate the spills though it made some progress in later stages.

The field's platform C hasn't been fully cleaned up and there are still leaks in the surrounding area, while cleanup measures at platform B are insufficient, it said

While operations are halted, Conoco should be willing to be strictly supervised by its joint-venture partner China National Offshore Oil Corp., or Cnooc., to prevent any new oil spills or environmental hazards, it said.

Conoco said last week that while it has sealed off all leaks at the field, residual oil, which is expected to dissipate, continues to seep from two leaks at the rate of one or two liters a day.

ConocoPhillips is responsible for operating the oil field, which has the capacity to produce 160,000 barrels of crude oil a day, in its joint venture with Cnooc.

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

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Saratoga Commences Production at Main Pass 46 Field

- Saratoga Commences Production at Main Pass 46 Field

Thursday, September 01, 2011
Saratoga Resources Inc.

Saratoga has successfully completed and commenced production from its Catina and Four Corners wells in Main Pass 46 Field.

The State Lease 20436 #1 Catina well began production on August 29, 2011 with a gross initial production (IP) rate of 1145 barrels of oil per day (bopd) and 606 thousand cubic feet of gas per day (MCFPD), or 1246 barrels of oil equivalent per day (boepd), through a 12/64 inch choke with flowing tubing pressure (FTP) of 2650 psi. Current gross production rates are 656 bopd and 498 MCFPD (gross 739 boepd, net 576 boepd), on a 12/64 inch choke with 2900 psi FTP. Saratoga expects production to exceed pre-drill stabilized estimates of net 470 boepd with 88% oil versus gas. Saratoga has laid new flowlines to connect the well to the Company's Main Pass 46 facility.

Saratoga also completed the 6100' Sand in the State Lease 20034 #1 Four Corners well, which began production on August 16, 2011 with a gross IP rate of 1.7 million cubic feet of gas per day (MMCFPD), or 283 boepd, with no fluid through a 10/64 inch choke with 2250 psi FTP. The well tested on August 25, 2011 at gross 1.864 MMCFPD (gross 311 boepd, net 235 boepd) on a 12/64 inch choke with 2400 psi FTP.

Saratoga's President, Andy Clifford, said, "We are excited to have such an excellent start to our renewed development drilling program with the Catina and Four Corners wells meeting expectations." Mr. Clifford added, "We are also excited by the addition of Butch Scelfo to our team as Manager of Drilling and Well Operations. Butch has over 30 years experience in the oil and gas industry with various independent operators, including Maxus, Meridian, Stone and PXP. He has significant experience drilling in Louisiana state waters. This is an exciting phase of development growth for the Company and we are glad to have Butch on board."

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Canacol Awarded Contract by Ecopetrol for Colombian Field

- Canacol Awarded Contract by Ecopetrol for Colombian Field

Thursday, September 01, 2011
Canacol Energy Ltd.

Canacol announced that Canacol Energy Colombia S.A., a subsidiary of the Corporation, has been awarded a contract by Ecopetrol S.A. for a 100% working interest in the associated gas and gas liquids stream from the Rancho Hermoso Field, located in the Llanos Basin of Colombia. Under the terms of the contract, awarded to Canacol by Ecopetrol S.A. on August 31, 2011, the Corporation will purchase the produced gas from Ecopetrol S.A. at a price of US $6.50 per thousand British Thermal Units (US $15.48 per thousand standard cubic feet per day), which includes the associated liquids, those being naphtha, propane and butane. The gas is very liquids rich, with 1 million standard cubic feet per day (mmscfpd) yielding approximately 160 barrels of naphtha, 126 barrels of propane, and 118 barrels of butane per day. In Colombia naphtha, propane, and butane all sell at a premium to West Texas Intermediate. The contract will be effective on January 1, 2012, and the Corporation anticipates adding approximately 2,300 net barrels per day of naphtha, propane and butane to its existing oil production stream from the approximately 5.7 mmscfpd of gas production forecast for January 2012.

Charle Gamba, President and CEO of the Corporation, commented "We are very pleased to have been awarded this contract for the associated gas at Rancho Hermoso, which will add a very healthy amount of liquids production to our oil production stream in Colombia. The Corporation will also be able to book proven, probable and possible reserves associated with the associated gas and gas liquids under the terms of the contract. Meanwhile, the Corporation has spudded the first of four new development wells to be drilled in the field during the remainder of 2011."

The Corporation anticipates awarding a contract for the construction of a gas and liquids separation facility in mid-September, 2011, which will be ready to receive the gas and associated liquids on January 1, 2012. The remaining dry gas will be utilized to generate electricity in the field, thereby lowering operating cost associated with the purchase of diesel, which is currently being used to generate electricity in the field.

The Corporation also announced that the spud of the Rancho Hermoso 11 development well on August 29, 2011, approximately 1 month behind schedule due to a delay in obtaining the environmental license for the well. All of the relevant licenses for the remaining wells to be drilled in the field have been obtained.

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Cooper Begins Drilling Well South of Butlers Field

- Cooper Begins Drilling Well South of Butlers Field

Thursday, September 01, 2011
Cooper Energy Ltd.

Cooper announced that the Germein-1 exploration well in PEL 92 spudded at 0330 hours Wednesday August 31, 2011. The surface hole has been drilled to 600 meters and preparations are currently underway to run the 9⅝” surface casing.

Germein-1 is located 1.9 km south of the Butlers oil field. The well's primary objective is the Namur Sandstone, which is the oil reservoir in the nearby oil fields. The Germein prospect is estimated to contain 0.211 million barrels of Prospective Resources (P50). The well will be drilled to a total depth of about 1,410 meters and is expected to take about 10 days to drill and evaluate.

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Lundin Extends Avaldsnes Field with Second Appraisal Well

- Lundin Extends Avaldsnes Field with Second Appraisal Well

Wednesday, August 31, 2011
Lundin Petroleum AB

Lundin announced that the second appraisal well, 16/2-7, has confirmed the extension of the Avaldsnes field approximately 5.5 kilometers south of the 16/2-6 discovery well and 4.5 kilometers south-west of the first appraisal well 16/3-4. The Avaldsnes field is located in license PL501 on the Norwegian Continental Shelf and is in communication with the recently announced Aldous Major South discovery in PL265 to the west.

The second Avaldsnes appraisal well encountered a gross reservoir column of excellent quality Upper Jurassic age sandstone of approximately 35 meters of which seven meters was above the oil water contact. A comprehensive coring and logging program has been performed which has confirmed excellent quality reservoir characteristics.

The appraisal well will now be sidetracked to obtain further reservoir information. The sidetrack will be completed by mid September. The well was drilled to a total depth of 2,500 meters MD and in a water depth of 113 meters.

Lundin Petroleum is using the semi submersible drilling rig Bredford Dolphin to drill the well.

Ashley Heppenstall, President and CEO of Lundin Petroleum commented, "The second Avaldsnes appraisal well results have confirmed the extension of the field to the south. We will, following the sidetrack, incorporate the results of the two well appraisal program and Statoil's Aldous Major South well in PL265 into our geotechnical models. We will then release a revised resource range from the previously announced 100 - 400 million barrels of recoverable of oil equivalent contained within PL501. The Avaldsnes /Aldous Major South discovery is already the largest discovery on the Norwegian Continental Shelf since the mid 1980s and I am confident has the potential to grow as the field is appraised. It is likely that a third appraisal well will be drilled on Avaldsnes during the fourth quarter of 2011."

Lundin Norway AS is the operator of PL501 with a 40 percent interest. Partners are Statoil Petroleum AS with 40 percent interest and Maersk Oil Norway with 20 percent interest.

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Circle Oil Updates Ops at Geyad Field in Egypt

- Circle Oil Updates Ops at Geyad Field in Egypt

Wednesday, August 31, 2011
Circle Oil plc

Circle Oil announced the following update regarding the Geyad-5X water injection well drilled to support production in the Geyad Field.

Geyad-5X

Geyad-5X, located to the south-west of the field and downdip of the Geyad-1X ST discovery well in the Geyad Development Lease, was drilled to 7,350 ft MD in the Upper Rudeis. The main objective for this well was to appraise the Shagar and Rahmi sandstones of the Kareem Formation in a downdip location and to provide water injection to support oil production from the updip Geyad field wells. The Shagar sands were encountered with 15 ft MD of net reservoir, an average porosity of 14% and perforations made between 6,510 and 6,525 ft MD. The Rahmi sands were encountered with 15 ft MD of net reservoir, an average of 13% porosity and perforations made between 6,583 and 6,899 ft MD. As expected, below the field oil-water contact both sands were found to be water bearing. The well has been completed as an injector.

The rig has now been mobilized to drill the water injector well Al Ola-2, located on the south-eastern flank of the Al Amir SE field, downdip of the Al Ola-1X producer. The well is planned to appraise both the Shagar and Rahmi sands for injection in that location.

The NW Gemsa Concession, containing the Al Amir and Geyad Development Leases, covering an area of over 260 square kilometers, lies about 300 kilometers southeast of Cairo in a partially unexplored area of the Gulf of Suez Basin. The concession agreement includes the right of conversion to a production license of 20 years, plus extensions, in the event of commercial discoveries. The NW Gemsa Concession partners include: Vegas Oil and Gas (50% interest and operator); Circle Oil Plc (40% interest); and Sea Dragon Energy (10% interest).

Prof Chris Green, CEO, said, "I am pleased to report another successful result as the partnership's plans in NW Gemsa continue on schedule. The rig will now move to start drilling the Al Ola-2 injector well situated on the Al Amir SE field. The water injection program is part of the continuing plan to increase production rates for the medium and long term."

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Antrim Submits Development Plan for N. Sea Causeway Field

- Antrim Submits Development Plan for N. Sea Causeway Field

Wednesday, August 31, 2011
Antrim Energy Inc.

Antrim, a partner in the Causeway Field located in UKCS Block 211/22a South West Area and Block 211/23d (Antrim 35.5%), announced submission of the final Field Development Plan ("FDP") to the Department of Energy and Climate Change ("DECC") and that Board approval has been gained from partners to progress into the development phase. DECC approval of the Causeway FDP is anticipated during 2011.

The Causeway FDP includes a production well and a water injection well in the East and Far East fault panels and will utilize existing wells on the field drilled during the appraisal phase. The production well will be completed with dual electrical submersible pumps and first oil is anticipated in mid 2012. Hydrocarbons will be transported to and processed at the Cormorant North platform operated by TAQA Bratani Limited before being exported to the Sullom Voe terminal for sale. Antrim's reserves evaluator, McDaniel and Associates Consultants Ltd., estimate 8.9 million barrels of proved plus probable oil reserves (Antrim net 3.2 million barrels) from the East and Far East fault compartments (as of December 31, 2010). Development costs net to Antrim are estimated at $32 million, inclusive of $21.8 million associated with the previously announced sale of Antrim Causeway (N.I.) Limited (Aug. 9, 2011). Commitments are now in place for all long lead equipment and the operator has awarded a letter of intent for the main subsea installation contract to Technip UK Limited.

The Causeway development plan includes an option to develop the Central panel, which is still under review by the partners and not included in the above referenced reserves or costs.

Stephen Greer, CEO of Antrim, commented, "The submission of the FDP for Causeway marks a significant milestone for Antrim, demonstrating a clear and defined path to first oil production from the Company's UK North Sea properties."

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JGC Bags Major EPC Contract for Bir Seba Field in Algeria

- JGC Bags Major EPC Contract for Bir Seba Field in Algeria

Wednesday, August 31, 2011
JGC Corp.

JGC and its subsidiary JGC Algeria Ltd. have been awarded the engineering, procurement and construction (EPC) services contract for the Bir Seba Field Development Project by Groupement Bir Seba, comprising Sonatrach, the Algerian state-owned oil and gas company, Petrovietnam Exploration Production Corporation (PVEP), and PTT Exploration and Production Algeria (PTTEP). Participating interests in Groupement Bir Seba are 25%, 40%, and 35%, respectively.

The Bir Seba Field Development Project, located in an inland and desert area 130 kilometers north east of Hassi Messaoud, calls for construction of a gathering system from 16 productive wells, crude oil processing facilities (20,000 bpd), and oil & gas export pipelines.

The lump-sum turnkey contract has a value of more than US $400 million and calls for Project completion in the first half of 2014.

With the award of the Bir Seba Field Development Project, JGC will be collaborating with JGC Algeria for the fourth time on an EPC project. Moreover, this Project will strengthen JGC Algeria's project execution capabilities.

JGC was awarded the contract for an oil refinery construction project in Arzew in 1969. Since then, the company has accumulated a long and impressive track record of hydrocarbon projects for Sonatrach and other foreign companies. JGC is currently executing three consecutive EPC projects in Algeria: gas and oil separation facilities in the Rhourde Nouss field (awarded in 2008); gas processing facilities in the Gassi Touil field (awarded in 2009); and gas compressors in the In Amenas field (awarded in 2011).

One of the goals set forth in JGC Group's "New Horizon 2015" five-year management plan is the strengthening and expansion of the Group's overseas subsidiaries. As a vastly experienced engineering and construction company in possession of the latest technologies, JGC, together with JGC Algeria, will continue to vigorously promote sales activities aimed at expanding its business opportunities in Algeria.

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Total Starts Up Taps at Pazflor Field

- Total Starts Up Taps at Pazflor Field

Friday, August 26, 2011
Total
by SubseaIQ

Total, operator of Block 17, announced that the giant Pazflor field offshore Angola has come on stream ahead of the initial schedule. The Pazflor field lies 150 kilometers off Luanda in water depths ranging from 600 to 1,200 meters and has estimated proved and probable reserves of 590 million barrels. The field will gradually ramp up to its full production capacity of 220,000 barrels per day over the coming months.

"Pazflor's start-up, several weeks ahead of schedule and within budget, is a remarkable achievement of the teams involved. The support and trust of Sonangol, our concession holder and partner, also made an invaluable contribution to our efficiency," said Yves-Louis Darricarrère, President Exploration & Production at Total. "Pazflor required a development effort on the same scale as the field. Paving a way with new technologies, the project showcases Total's expertise in highly complex environments. The project facilities have been designed and thoroughly tested in accordance with the strictest health, safety and environmental standards. This is another step in the ongoing saga of our deep offshore feats, begun right here in Angola. Deepwater developments are a core driver of our future production growth."

Pazflor comprises a vast subsea gathering network, the most complex ever built in Angola: 180 kilometers of lines tying in 49 subsea wells, 10,000 metric tons of subsea equipment and the giant Pazflor floating production, storage and offloading (FPSO) vessel. Held in position by 16 subsea mooring connectors, with its 325 meters long, 62 meters wide and a weight of more than 120,000 metric tons, the FPSO is the largest in the world. It can store up to 1.9 million barrels of oil that is then exported to tankers via an offloading buoy. The associated gas is reinjected into the reservoir, but could also be exported to the Angola LNG plant once the latter becomes operational.

A key technical challenge was producing two very different grades of oil from four separate reservoirs. Producing the heavy, viscous oil from the three Miocene reservoirs, which account for two-thirds of the reserves, and the related flow assurance constraints, represented a major challenge. The gas has to be separated from the liquids on the seabed so that the viscous liquids can then be pumped to the surface. The design and installation of subsea gas-liquid separation units and pumps are a world first on this scale. The pumps were purpose designed and tested for Pazflor.

Total's wholly owned subsidiary Total E&P Angola operates Block 17, with a 40% interest, while Sonangol is the concession holder. The other partners are Statoil ASA (23.3%), Esso Exploration Angola (Block 17) Limited (20%) and BP Exploration (Angola) Ltd (16.67%).

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