Max Petroleum Confirms Oil Pay at Uytas Field

- Max Petroleum Confirms Oil Pay at Uytas Field

Monday, August 08, 2011
Max Petroleum plc

Max Petroleum announced that the UTS-2 confirmation well in the Uytas Field in Kazakhstan has reached a total depth of 820 meters, with electric logs indicating 12 meters of net oil pay in the Cretaceous section at depths ranging from 108 to 148 meters, consisting of three sandstone reservoirs of excellent quality with porosities ranging from 25% to 34%. The Company also identified an additional six meters of net oil pay in Jurassic reservoirs at depths of approximately 350 meters. Significant oil shows were recorded continuously from depths of 36 meters to 150 meters, which appear to confirm the oil column seen in the original UTS-1 discovery well. Consequently, the Company extensively cored the UTS-2 well over the interval from 39 meters to 160 meters to allow further study of reservoir properties within this vertical column, with results from the coring analysis expected by early fourth quarter 2011. The core analysis will also be used to evaluate the potential of additional lower-quality reservoirs present in the Cretaceous in this interval that have not been included here as net pay. Furthermore, Cretaceous reservoirs above 80 meters that were not evaluated on electric logs due to their shallow depth may be tested in this well or subsequent wells pending the final core analysis.

The Company is currently running production casing in the well, which will be completed and tested using a workover rig after obtaining the requisite governmental approvals. Test results will be announced as soon as practicable. The Company plans to drill two additional appraisal wells in the field during August 2011 and acquire a high-fold 3D seismic survey over the Uytas structure in October 2011, in order to facilitate preparation of a long-term appraisal and development program for the field.

Robert B. Holland, Executive Co-Chairman, commented, "We are pleased with the successful confirmation of our Uytas discovery, with results in line or better than the original discovery well. We are conducting core analysis and additional technical studies to better define the potential of this discovery, and identify production techniques to maximize future oil recovery from the field given Uytas' unique shallow setting."

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Statoil, Partners Hit Significant Oil Pay in North Sea

- Statoil, Partners Hit Significant Oil Pay in North Sea

Monday, August 08, 2011
Statoil

Statoil and partners Petoro, Det norske and Lundin have made a high-impact oil discovery on the Aldous Major South prospect (PL 265) in the North Sea.

Well 16/2-8, drilled by the Transocean Leader drilling rig, has identified an approximately 65-meter oil column in Jurassic sandstone. The acquired data confirm that this is a reservoir of excellent quality.

Statoil has previously described the well as a high-impact well, and the result confirms Statoil's belief in the exploration potential on the Norwegian continental shelf in line with what was communicated at the Capital Markets Day event in New York in June.

Preliminary volumes are estimated to be between 200 and 400 million barrels of oil equivalent (boe) for this part of the structure in PL 265, and Statoil expects additional upside in the license both north and south of the discovery.

Aldous Major South is located west of Lundin's Avaldsnes discovery (license PL 501), where Statoil has a 40% stake, and some 35 kilometers south of the Statoil-operated Grane field.

Well 16/2-8 indicates the same oil-water contact as in the Avaldsnes discovery well, which suggests the likelihood of communication between the two structures. The Avaldsnes discovery encountered a 17-meter oil column. Statoil will update its total resource estimate for the area when the wells are completed and the data analyzed.

"Aldous Major South is a considerable oil discovery in one of Statoil's core areas. Together with the Avaldsnes discovery this may allow for a new stand-alone development in the North Sea. As the largest resource owner our priority is to find the optimal solution for the area, adding maximum value to all partners," said Gro G. Haatvedt, Statoil's senior vice president for Exploration on the Norwegian continental shelf.

After completing this well Transocean Leader will start drilling the Aldous Major North well. This well also has a considerable volume potential.

The partnership is planning two appraisal wells in PL 265 next year and Statoil has secured rig capacity for this.

The result of the ongoing drilling of the Lundin-operated well (well 16/2-7) in the Avaldsnes structure will help further clarify the area’s potential.

Aldous Major South is located in license 265. Statoil is the operator and has a 40% interest. The other partners are Petoro (30%), Det norske oljeselskap (20%) and Lundin (10%).

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Total Makes Major Gas Find in Barents Sea

- Total Makes Major Gas Find in Barents Sea

Monday, August 08, 2011
Norwegian Petroleum Directorate

Total EP Norge AS, operator of production license 535, has completed the drilling of wildcat well 7225/3-1. The well, which proved gas, was drilled in the Barents Sea, about 250 kilometers north of Melkoya.

The primary exploration target for the well was to prove petroleum in Triassic reservoir rocks (Snadd and Kobbe formations). The secondary exploration target was to prove petroleum in the Middle Jurassic (Sto formation), Triassic (Havert formation) and Permian (Bjarmeland formation).

Gas was proven both in intervals from the Jurassic and the Triassic: in the Kobbe formation with a 400-meter interval in rocks of varying reservoir quality, and in the Havert formation in two intervals of 80 and 90 meters, respectively, in poorly developed reservoir rocks. Gas was also encountered in the Sto and Snadd formations.

Preliminary estimates place the size of the discovery between 10 and 50 billion standard cubic meters (Sm3) of recoverable gas.

A successful formation test has been carried out in the upper part of the Kobbe formation. The maximum production rate was 180 000 Sm3 gas per flow day through a 44/64-inch nozzle. The gas contains only small amounts of CO2, H2S and N2. The results from the well will be included in the ongoing evaluation of "Norvarg" to establish the size and extent of the gas discoveries.

The well was drilled in 376 meters of water and is the first exploration well in production license 535. The license was awarded in the 20th licensing round in 2009.

The well was drilled to a vertical depth of 4150 meters below the sea surface, and was terminated in the Orn formation in Permian rocks. The well will now be permanently plugged and abandoned.

Well 7225/3-1 was drilled by West Phoenix, which will now go on to drill for Statoil Petroleum AS on the Troll field in the North Sea.

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ONGC In Talks to Sell Indian Ocean Deepwater Stakes - FT

- ONGC In Talks to Sell Indian Ocean Deepwater Stakes - FT

Monday, August 08, 2011
Dow Jones Newswires

India's Oil & Natural Gas Corp. (ONGC) is talking to Shell, BG Group and Eni to sell stakes in its Indian Ocean deepwater developments, the Financial Times reported Sunday, citing ONGC's chairman AK Hazarika.

ONGC is already co-operating with Shell, BG and Eni in a number of other blocks, and talks had been under way for some time. ONGC seeks a partner on the technical front to expand the development of its 85 deepwater blocks in the Indian Ocean, Hazarika said in the report available on the FT website, without giving a deadline for the deal.

The company was willing to give away up to 30% of its assets in exchange for technical expertise, Hazarika said, according to the report.

Shell and BG declined comment, while Eni didn't respond, the FT said.


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

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