Eni Hits Hydrocarbon Pay Offshore Ghana

- Eni Hits Hydrocarbon Pay Offshore Ghana

Thursday, July 28, 2011
Eni S.p.A.

Eni has made a new hydrocarbon discovery offshore Ghana through the Gye Nyame 1 well, which is located in the OCTP block 50 km off the Ghanaian shoreline.

The well, which was drilled in 519 meters of water, was drilled to a total depth of 3,349 meters and encountered significant thickness of gas and condensate sands with excellent reservoir characteristics. Oil mineralization was also discovered in the underlying sands. Its significant potential will be further assessed through a delineation program.

The discovery is located 16 km east of the Sankofa gas discovery, and confirms the important role of this block in the development of non-associated gas resources in Ghana.

Eni has already begun talks with the Ministry of Energy and the partner organization, GNPC (Ghana National Petroleum Corporation), aimed at fast-tracking the development of Sankofa which will contribute to the valorization of the gas on the domestic market, thus contributing to the ambitious growth targets of the country.

Thanks to the discovery of Gye Nyame, Eni can now also study important development and production synergies. By consolidating gas volumes of the two discoveries, this development opens up opportunities for exploiting the international market for liquefied gas, through offshore facilities of which Eni has significant knowledge and appropriate technology.

Eni, through its subsidiary Eni Ghana Exploration and Production Limited, is the operator of the OCTP license with a 47.22% interest. Other partners are Vitol Upstream Ghana Limited, with a 37.78% stake, and state company GNPC with a 15% stake. GNPC has a back-in option for an additional 5% of the license.

Eni is also finalizing the farm in to the Keta block as operator with a 35% stake. The block is located offshore the eastern coast of Ghana, bordering Togalese waters, where Eni acquired two exploration licenses in 2010. Partners in the Keta Block Joint Venture are Afren Energy Ghana Ltd., wholly owned subsidiary of Afren plc, with a 35% stake, Mitsui E&P Ghana Keta Ltd. with 20% and GNPC with 10%.

Eni has been present in Sub-Saharan Africa since the early 1960s and is currently operating in Angola, Nigeria, Togo, Ghana, Republic of Congo, Gabon, Democratic Republic of Congo and Mozambique. Eni's operated production in the area is around 450,000 barrels of oil equivalent per day.

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South Africa, South Korea Sign Deal on Hydrocarbon Exploration

- South Africa, South Korea Sign Deal on Hydrocarbon Exploration

Tuesday, July 05, 2011
Deutsche Presse-Agentur (dpa)

The national oil companies of South Africa and South Korea on Tuesday signed a deal on hydrocarbon exploration in Africa.

PetroSA and the Korea National Oil Corporation (KNOC) said they will also explore investment opportunities in the oil and gas sector on the continent.

The South African company said the deal would help it secure fuel supplies for the country, while its South Korean counterpart said this was a "golden opportunity to advance into African regions."

This is the latest deal between major Asian economies and African firms on natural resources, while countries like South Korea seek access to key exports to ensure their growth.

Copyright 2011 dpa Deutsche Presse-Agentur GmbH

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OGX Hits Hydrocarbon Pay in Santos Basin

- OGX Hits Hydrocarbon Pay in Santos Basin

Friday, July 01, 2011
OGX S.A.

OGX has identified the presence of hydrocarbons in the Santonian section of 1-OGX-47-RJS well, in the BM-S-59 block, in the shallow waters of the Santos Basin. OGX holds a 100% working interest in this block.

"This discovery in conventional reservoirs of the Santos Basin contributes significantly to the development of our assets in this region. When combined with the discoveries that we have already made, we will be able to optimize the operational structure of this area by taking advantage of the economies of scale," commented Mr. Paulo Mendonça, General Executive Officer and Exploration Officer of OGX. "Following the drilling campaign, we will intensify both the appraisal process of the several discoveries for this basin, as well as the development of the production model for the region," added Mr. Mendonça.

A hydrocarbon column of approximately 131 meters was encountered in the sandstone reservoirs of the Santonian section with about 51 meters of net pay. This discovery is located 2.9 kilometers from the Natal accumulation which was discovered through the drilling of well OGX-11.

The OGX-47 well, named as Maceió, is located in the BM-S-59 block and is situated approximately 110 kilometers off the coast of the state of Rio de Janeiro at a water depth of approximately 185 meters. The Ocean Quest rig initiated drilling activities on May 24, 2011.

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Gulfsands Encounters Hydrocarbon Columns in Syria

- Gulfsands Encounters Hydrocarbon Columns in Syria

Thursday, June 02, 2011
Gulfsands Petroleum plc

Gulfsands announced that drilling and testing operations have recently been completed on the Abu Ghazal-1 ("AGZ-1") exploration well in Syria. Potentially significant hydrocarbon columns were encountered within the Triassic aged Butmah and Kurrachine formations. However, a series of drill-stem tests ("DST") undertaken on the well resulted in the recovery of sub-commercial quantities of heavy/viscous oil. The well has now been suspended pending detailed analysis of well results.

The AGZ-1 well commenced drilling operations on January 23, 2011, utilizing the Crosco E-401 drilling rig and was drilled to a depth of 3850 metres Measured Depth ("m MD"). The well was planned to evaluate potential reservoirs within the Cretaceous aged Massive and Triassic aged Butmah and Kurrachine Dolomite formations within a large, fault bound structure identified and mapped on 3D seismic data.

The well encountered the Massive Formation at a depth of approximately 2572m MD, but in spite of elevated gas readings observed while drilling, the section drilled at this location was found to contain relatively poor reservoir properties and drill cuttings indicated only traces of oxidized oil and asphalt.

The Triassic Butmah Formation was encountered at 3287m MD with elevated gas readings and traces of oil in the mud system. Interpretation of wireline logs indicated a significant oil column; however no formation fluids were recovered when testing. The lack of any fluid flow from the formation is currently interpreted to be due to low permeability within the reservoir.

The well encountered the top of the Triassic Kurrachine formations at 3456m MD. Substantially elevated gas readings were encountered while drilling through this section and live oil was recovered in coring operations. Interpretation of wireline logs indicated a significant oil column, with subsequent testing resulting in sub-commercial volumes of very heavy to heavy oil (approximately 12 degree API) being recovered along with highly saline formation water.

The Crosco E-401 rig will now be moved to the Khurbet East No. 19 ("KHE-19") well location on the northwest flank of the Khurbet East field. This well is planned as a further step-out from the successful KHE-18 delineation in the northwest, which encountered high quality karst reservoir in the Massive formation. The KHE-19 well will evaluate an area estimated to contain oil-in-place of approximately 30 MMstb and if the well is successful there will exist an opportunity for possible (3P) Khurbet East reserves to be matured to probable and proven reserves categories at year end 2011.

Gulfsands drilling operations in Syria Block 26, using the Crosco E-401 and E-501 drilling rigs, are continuing as planned and have continued without interruption during recent months.

Ric Malcolm, Gulfsands CEO, said, "While we are pleased to have encountered significant oil columns within the Abu Ghazal well, the production test results have been disappointing. We will now analyze all of the data prior to determining the extent of any further operations at this location. The rig will now move on to drilling the KHE-19 well as we continue with our very busy 2011 program of drilling exploration prospects and development wells."

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Condor Appraisal Encounters Hydrocarbon Pay

- Condor Appraisal Encounters Hydrocarbon Pay

Tuesday, May 31, 2011
Condor Petroleum Inc.

Condor announced that its Shoba-3 appraisal well has reached a total depth of 943 meters and encountered a 48 meter continuous hydrocarbon column in the Triassic zone. Shoba-3 net pay is comprised of 18.4 meters of oil and 16 meters of gas in sandstone reservoirs. 46.5 meters of core was also recovered to assist with additional reservoir characterization. The Shoba-3 well is located on the 2,610 sq. km Zharkamys West 1 contract territory (the "Zharkamys Territory"), situated in Kazakhstan's Pre-Caspian basin.

The Shoba-3 well further appraised the Shoba structure, offsetting the successful Shoba-1 and Shoba-2 wells. Based on pressure and well log data, all three wells have a common gas-oil and oil-water contacts. Shoba-3 is expected to be completed once regulatory approvals are obtained.

The drilling rig used for the Shoba-3 well is now mobilizing to Kiyaktysay North-3, a separate structure approximately 17 km south east of the Shoba field.

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TD Reached at Premier's Ca Rong Do Appraisal

TD Reached at Premier's Ca Rong Do Appraisal

Monday, April 11, 2011
Premier Oil plc

Premier announced that the CRD-2X appraisal well in block 07/03 Vietnam has been drilled to a TD of 3785 meters MDRT, appraising the Miocene sands discovered in 2009 with the CRD-1X well.

The well was deepened from the preliminary TD of 3109 meters MDRT to evaluate the Oligocene which was not tested by the CRD-1X well. Two drill stem tests of the hydrocarbon bearing sands in the Oligocene section have been conducted. The first zone tested flowed gas and condensate at rates of 9.7 mmscfd and 870 bopd respectively through a 40/64 inch choke. The second zone tested flowed gas and condensate at rates of 17 mmscfd and 1730 bopd respectively through a 56/64 inch choke.

The well will now be sidetracked to further evaluate the distribution of hydrocarbons in the Miocene sands.

Simon Lockett, Chief Executive Officer, commented, "We are encouraged by the hydrocarbon flow rates from the Oligocene section in Ca Rong Do, which in addition to the previously proven Miocene reservoirs, provide further exploration upside across the area. We look forward to the result of the sidetrack well which will provide additional data to determine the hydrocarbon distribution in this part of the Ca Rong Do structure."

KazMunaiGas to Acquire 4 Exploration Contracts

KazMunaiGas to Acquire 4 Exploration Contracts

Monday, April 11, 2011
JSC KazMunai Gas Exploration Production

KazMunaiGas announced agreements reached with the JSC National Company KazMunayGas ("NC KMG") to acquire four hydrocarbon exploration contracts.

As per the agreement, KMG EP acquires the following four contracts: Temir, Teresken, Karaton-Sarkamys and the territory adjacent to Uzen and Karamandybas.

Temir and Teresken blocks are located in the Aktobe region in close proximity to the assets of Kazakhoil Aktobe LLP and Kazakhturkmunai LLP, as well as other assets, which may be of interest to KMG EP. The geographic location of the contract area has several advantages, including infrastructure and logistics.

The territory adjacent to Uzen and Karamandybas is located in the area of operations of Uzenmunaigas production facility. Block Karaton-Sarkamys is located in the Atyrau region 100km south-west of the Kulsary deposit in the area of operations of Embamunaigas production facility.

The acquisition cost of the four contracts is USD $40 million. The transactions will be financed from KMG EP's own funds.

According to the Company's estimates, the geological resources on four blocks are around 1.5 billion barrels of oil equivalent.

The terms of the contracts on the territory adjacent to Uzen and Karamandybas, Karaton-Sarkamys block and Temir, is 6 years from 2010, with the right of extension until 2019. With regard to the Teresken block, the license is for 6 years, starting in 2006, with the right of extension until 2015.

Significant synergies can be achieved through the use of the existing infrastructure of Embamunaigas and Uzenmunaigas production facilities in Atyrau and Mangistau regions, which will help to optimize capital and operating costs.

It is anticipated that the acquired assets will enhance the quality of the Company's on-shore projects portfolio and, in case of successful exploration, will increase the Company's recoverable reserves in the medium term, including Uzen and Emba groups of fields.

Askar Balzhanov, CEO of KMG EP, said, "The acquisition of these contracts is another step towards the implementation of the Company's strategy to grow via acquisitions and expansion of exploration. KMG EP has repeatedly stated its intention to purchase these four blocks, and now the agreement is reached. The Company will continue its search for highly promising assets, acquisition of which will serve the interests of all shareholders."

The acquisition was approved by the Board of Directors of KMG EP and the Board of Directors of NC KMG. Approvals of the Government regulators have been received.
The closing of the deal is expected in the second quarter of the current year.

Pacific Rubiales Acquires Maurel & Prom Stake in Colombia

Pacific Rubiales Acquires Maurel & Prom Stake in Colombia

Thursday, March 31, 2011
Pacific Rubiales Energy Corp.

Pacific Rubiales announced the acquisition of 50% of the interests held by Maurel et Prom in the Sabanero, Muisca, SSJN-9, CPO-17 and COR- 15 blocks, which are all located on-shore in Colombia.

Mr. Ronald Pantin, Chief Executive Officer of the Company, commented, "We are very pleased to join forces with Maurel et Prom. This acquisition adds significant resources and exploratory potential to our already robust resource base. Moreover, this acquisition fits synergistically with our other assets located in the same basins, paving the way to significant efficiencies in production and transport. With this acquisition we continue raising the bar as the premier explorer and operator in Colombia."
Upon completion of the transaction, Pacific Rubiales will partner with Maurel et Prom in respect of the following interests:

• 100% participation in the Sabanero Block ("E&P Contract No. 17 of 2007 Sabanero") located in the central region of Colombia in the Department of Meta.
• 100% participation in the Muisca Block ("E&P Contract No. 20 of 2008 Muisca") located in the central region of Colombia in the Departments of Boyacá and Cundinamarca.
• 50% participation in the SSJN-9 Block ("E&P Contract No. 47 of 2008 SSJN- 9") located in the northern region of Colombia in the Departments of Bolivar, Cesar and Magdalena. The remaining 50% interest is currently held by HOCOL.
• 50% participation in CPO-17 Block ("E&P Contract No. 40 of 2008 Llanos Orientales - Area Occidental CPO-17") located in the central region of Colombia in the Department of Meta. The remaining 50% interest is currently held by HOCOL.
• 100% participation in the COR-15 Block ("Special Technical Evaluation Agreement Type 3 Contract") located in the central region of Colombia in the Department of Boyacá.

This agreement is subject to legal and regulatory approvals of the ANH and certain contractual approvals with the partners in Colombia.
The general terms of the agreement with Maurel et Prom are as follows:

• Pacific Rubiales will pay to Maurel et Prom cash consideration to a maximum of US $66 million as a reimbursement for past exploration costs in the blocks, as at March 31, 2011.
• Pacific Rubiales will assume a full carried obligation on the exploration and delineation activities in the Sabanero Block with a reimbursement out of the free cash flow. The Company will also secure the financing required by Maurel et Prom to execute its portion of the development activities in such block.
• Reimbursement will also be made by means of free cash flow derived from future hydrocarbon production. Pacific Rubiales offers to assume a full carried obligation of up to US $120 million in three years for exploration activities in the SSJN-9, CPO-17 and Muisca Blocks. This obligation will be subject to revisions pending the activity results and negotiations with the other applicable partners.
• Pacific Rubiales will assume a full carry obligation on exploration activities for Block COR-15, with reimbursement by means of free cash flow derived from future hydrocarbon production. The Company will also secure the financing required by Maurel et Prom to execute its portion of the development activities in such block. Reimbursement will also be made by means of free cash flow derived from future hydrocarbon production.

TGS Commences Reprocessing Program Offshore Indonesia

TGS Commences Reprocessing Program Offshore Indonesia

Thursday, March 31, 2011

TGS-NOPEC Geophysical Co. ASA

TGS has commenced an extensive multi-phase reprocessing program of 2D seismic data located in the Makassar Strait, Indonesia. The first phase consists of 2,700 km of seismic data in the Northern Mahakam Delta.

The original and reprocessed data support the exploration potential of the deepwater area of the Mahakam Delta. Interpretation of the seismic data since 2001 has demonstrated potential hydrocarbon prospectivity in the basin, resulting in the award of exploration acreage and the drilling of several exploration wells. Partial relinquishment of the exploration blocks have also recently created opportunities for new exploration in the area.

The data will be reprocessed with customized techniques to enhance imaging of the main structures and reservoir targets in the basin. The reprocessed data is intended to enhance definition of Direct Hydrocarbon Indicators (DHIs) and Amplitude Versus Offset (AVO) anomalies associated with turbidite reservoirs seen on the original 2D seismic data.

Data from this initial phase of reprocessing will be available for clients in 3Q 2011. This project is supported by industry funding.

Statoil, KazMunaiGas Team Up in Caspian Sea JV

Statoil, KazMunaiGas Team Up in Caspian Sea JV

Wednesday, March 30, 2011

Statoil

Statoil and KazMunaiGas have signed the Heads of Agreement (HoA) on the Abay block in the Kazakhstani sector of the Caspian Sea.

Under the HoA, the parties plan to conduct evaluation of the hydrocarbon potential of the Abay block in the Northern Caspian Sea. Statoil and KazMunaiGas will jointly establish a company that will serve as operator of the project. The exploration work program will cover seismic surveys, data acquisition and the drilling of one exploration well.

"Joint cooperation in the Abay block is an important strategic step for Statoil as we continue our international growth. This agreement marks an important milestone in Statoil's re-entry into Kazakhstan and I am very pleased that we have strengthened our partnership with KazMunaiGas," said Tim Dodson, executive vice president for Exploration in Statoil.

In addition to the work program the joint operating company will participate in social investment projects including training of local personnel. Statoil will provide financial and technical assistance to KazMunaiGas' project to build, own and operate a jack-up drilling rig for the use in the Caspian Sea.

"We are interested in cooperation with Statoil in attracting and using their experience and technologies in operating international offshore oil and gas projects. The HoA signing confirms the intentions of the parties about the strategic partnership of our two companies on the joint activities in the Caspian Sea," said Kairgeldy Kabyldin, Chairman of the management board of JSC NC KazMunaiGas.

The Abay block is located 65 km from the shore, at a water depth of 8-10 meters.

Iraq, Shell Resolve Last Obstacle to $12B Gas Deal -Official

Iraq, Shell Resolve Last Obstacle to $12B Gas Deal -Official

Tuesday, March 29, 2011
Dow Jones Newswires

by  Hassan Hafidh

 

The Iraqi Oil Ministry and Shell have removed the last obstacle preventing them from signing a long-awaited $12 billion joint-venture deal, a senior Iraqi oil official said Tuesday.

The main dispute was over the rights of export. Shell, along with its partner Japan's Mitsubishi, wanted to handle exports, while under current Iraqi hydrocarbon laws the Iraqi State Oil Marketing Organization should do so.

"The issue is nearly resolved," Ali H. Khudhier, head of the state-run South Gas Company told Dow Jones Newswires in an interview in his office in Zubair, south of Basra.

"Shell wanted to handle exports, but now it is agreed that SOMO would handle export," he said. Shell, however, has asked for further discussions as it needs to install an export mechanism, he said.

Last week, the energy committee at the Iraqi council of ministers asked the Oil Ministry to review the Shell draft deal which aims to capture and exploit millions of cubic feet a day of gas flared from four super-giant oil fields near Basra.

The gas project is crucial to Baghdad's ambitious oil expansion that will also boost much-needed power generation in Iraq.

"Once the energy committee approves the recent changes, we need to sit with Shell to adjust these changes in the draft contract," Khudhier said. He preferred not to give a specific date for signing the deal, but he said it could happen in a matter of weeks.

The joint venture--Basrah Gas Co, or BGC--will process associated gas produced from three supergiant Iraqi fields--Rumaila, West Qurna 1 and Zubair--all located in Basra. The three fields are being developed by international oil companies.

"We are expecting these three fields to produce up to 3 billion cubic feet a day in the coming six to seven years," Khudhier said.

In total, the three fields are currently producing some 1.05 billion cubic feet a day, but only 450 million cubic feet a day are utilized while the rest is flared, he said.

The project is vital to Shell's strategy of positioning itself as a leading gas supplier and producer in the Middle East. After domestic needs are met, an LNG terminal will be built in the Gulf to handle the export of 600 million cubic feet a day.

"The extra gas will be exported to East Asia and Gulf states including Kuwait and the United Arab Emirates," Khudhier said.
He also said Iraq could revive a disused pipeline to export gas to Kuwait. "If the Kuwaitis want to import gas from us, we are ready to supply them," he said. Iraq used to export an average of 200 million cubic feet a day gas to neighboring Kuwait, but sales were suspended when Iraq invaded its neighbor in 1990.

Iraq is home to 126 trillion cubic feet of gas, but produces only around 1.5 billion cubic feet a day--of which 700 million cubic feet a day are burned for lack of infrastructure.