EnCore, Partners Acquire North Sea License

- EnCore, Partners Acquire North Sea License

Friday, July 01, 2011
EnCore Oil plc

EnCore Oil and its P1655 (Block 15/21g) partners, Nautical Petroleum and Serica (the P1655 group), have agreed terms to acquire a 70 percent interest in a part of adjoining License P218 (Block 15/21a). P218 is currently operated by DEO Petroleum with co-venturers, Faroe Petroleum plc, Maersk Oil UK Ltd and Atlantic Petroleum (the P218 group). The area in P218 to be acquired includes the 15/21a-38z Spaniards/Gamma discovery well, drilled in 1989 by Amerada Hess, which flowed 2,600 bbls/day of 26 API oil on test. In consideration, the P1655 group have agreed to assign the P218 group a 30 percent interest in P1655, and have agreed to fund the cost of the first well to appraise the Spaniards/Gamma discovery. It has also been agreed that a subsequent appraisal well, if deemed necessary and approved by the partnership, would be funded on promoted terms by the current P218 partners as shown in the table below, after which funding for any further wells would be by equity share.

The first well, is expected to commence drilling in Q2 2012, subject to suitable rig availability and receipt of the necessary permitting and site survey approvals.
Blocks 15/21d (P1870), 13/28b (P1866), 22/5 (P1876)

EnCore has also, subject to necessary DECC approvals, acquired a 50 percent interest in the above mentioned 26th Round Promote licenses under the terms of a pre-existing option agreement between EnCore and Echo Exploration Limited for a nominal sum. Echo Exploration is a 100 percent owned subsidiary of North Sea Energy Inc..

Block 15/21d contains the 15/21-50 Beehive discovery well, drilled by Amerada Hess in 1993 which flowed 5,700 bbls/day of 28 API oil on test.

Alan Booth, Chief Executive of EnCore commented, "We are especially pleased to have reached agreement with the P218 group to progress the further evaluation of the Spaniards/Gamma discovery. Although not without risk, if successfully appraised, Spaniards/Gamma has significant upside potential but also a relatively low commerciality threshold, given both the proximity of the Scott Field and the potential for synergies with the prospective development of the nearby Perth Field. Block 15/21 is a prolific block, containing a number of previously developed fields and having had 56 exploration and appraisal wells drilled in it to date, the last well, 15/21-56, being drilled some 14 years ago. We believe that the time is now right for further evaluation of these undeveloped discoveries."

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Nido Spies O&G Column at Ginadara-1 Well

- Nido Spies O&G Column at Ginadara-1 Well

Friday, July 01, 2011
Kariki Energy

Kairiki provide an update on its operations in the Philippines.

• SC54B (KIK: 22%)
  • Preliminary interpretation of wireline log data suggests that the recently drilled Gindara-1 exploration well discovered a 187 meter hydrocarbon column (144 meters of gas and an additional 43 meters of possible oil). However due to the hydrocarbon column being contained in poor quality reservoir, the discovery is considered non-commercial;
  • A re-assessment of depth mapping will focus on the hydrocarbon column encountered, closure height of the structure and whether or not the Gindara structure could be filled to spill with hydrocarbons;
  • Seismic reprocessing of some 2D seismic lines within the southern portion of SC54B has provided some preliminary evidence for the possible existence of the southern extension of the Malampaya Trough adjacent to the 53 sq km Pawikan lead. This could have implications for the prospectivity of the southern part of SC54B as the Malampaya Trough is considered to have generated the hydrocarbons encountered in Gindara-1 approximately 30 km to the north of Pawikan;
  • A review of results of the Gindara-1 well in addition to area studies focussing on the prospectivity on the southern portion of the block is ongoing.
• SC54A (KIK: 30.1%)
  • Assessment of the results of seismic reprocessing of the area covering the Nido 1X1 oil discovery has confirmed the robustness of the oil bearing Nido Limestone pinnacle reef . Work is currently ongoing to determine the potential oil volumes within the structure and commercialization scenarios;
  • A substantial portfolio of potentially economic prospects and discoveries has been re-affirmed, with the highest graded opportunities identified to be the Nido-1X1 discovery (which is located near the Nido A production platform in adjacent block SC 14A) and the Lawaan exploration prospect;
  • Kairiki is currently seeking to reduce its interest in the bock in return for a funded drilling program. The Company has been in discussions with a number of parties in regards to a possible transaction.

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ATA to Complete Construction at Chirag in 2013

- ATA to Complete Construction at Chirag in 2013

Friday, July 01, 2011
Knight Ridder/Tribune Business News
by E. Ismailov, Trend News Agency, Baku, Azerbaijan

The Alliance Amec-Tekfen-Azfen (ATA) will complete the construction of topside structures and drilling facilities for the new platform within the Chirag oil project to increase oil production on the block Azeri-Chirag-Guneshli in March 2013, a source on the oil and gas market said.

The source said that at present, some elements of the topsides and rig are being assembled. They are planned to be completed in the second quarter of next year. About 70 percent of the work within the wellhead platform was conducted. "According to the plan of operations, the drilling sites are planned to be installed in May next year," the source said.

The source said that it is planned to mount a rig next month. All the necessary elements will be imported from Poland.

The construction process consists of two stages. The first stage is the production of the necessary elements, and the second stage involves their installation.

ATA has engaged in construction of the topsides of one of the technological platforms. Chirag oil project envisages construction of a new platform called West Chirag. The platform will be installed at a depth of 170 meters between the already-running production platforms Chirag and Guneshli.

Chirag oil project envisages investments in the amount of $6 billion.

Outstripping drilling, under the project covered in the second half of 2010, will go on until the first half of 2012. The Dede Gorgud rig will perform the drilling, with production from the platform expected to begin late 2013.

In total, 300 million barrels of oil are expected to be produced under the ACG contract by the end of 2024.

ACG participating interests are BP with 34.43 percent, Chevron with 11.27 percent, SOCAR with 10 percent, INPEX with 10.96 percent, StatOil with 8.6 percent, Exxon with 8 percent, TPAO with 6.8 percent, Itochu with 4.3 percent and Hess with 2.72 percent.

Copyright (c) 2011, Trend News Agency, Baku, Azerbaijan

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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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