Jubilant Posts Test Results of Appraisal Well DDE-APP-1 in India

- Jubilant Posts Test Results of Appraisal Well DDE-APP-1 in India

Tuesday, August 09, 2011
Jubilant Energy N.V.

Jubilant announced the results of Appraisal Well DDE-APP-1 in the Deen Dayal East Field in the KG Block, which was spudded on the January 1, 2011.

The well was drilled by the operator (GSPC), with the objective of appraising the hydrocarbon bearing sands of the KG-16 discovery well and, in the process, to test the Cretaceous and Jurassic Rift Fill and younger sandstones that were found to be productive in other wells on the Deen Dayal structural complex. The well was drilled to 5,621 meters measured depth and encountered basement at 5,530 meters measured depth.

Two Drill Stem Tests ("DST") were undertaken after electric logging of the lower section of the well. DST-1 was undertaken in the rift fill section with perforation between 4,957 to 4,970 meters measured depth. This test flowed water at an average rate of 1500 bwpd and carbon dioxide ranging 20% to 28% was found in the well stream. DST-2A was undertaken in a shallower section with perforation between 4,774 to 4,786.5 meters measured depth and 4,789-4,799.5 meters measured depth. This flowed gas at 0.73 mmscfd with condensate at 60 bcpd from a 12/64 inch choke; 6% constant carbon dioxide was observed during the test.

The authorized cost to drill and test the well was approximately USD 75 million (USD 7.5 million net to Jubilant), the actual cost to date is approximately USD 69 million (USD 6.9 million net to Jubilant). The rig is currently waiting for a suitable weather window to move to the Well Head Platform.

Jubilant holds a 10% participating interest in this block through its subsidiary Jubilant Offshore Drilling Private Limited in India. Gujarat State Petroleum Corporation Limited, with an 80% participating interest, is the operator for the block. Geo Global Resources holds 10%.

Ajay Khandelwal, CEO of the Company commented, "The results of this well are not as expected and the operator is undertaking a full evaluation of the results. Any impact on 2C resources for DDE will be declared following a detailed evaluation by the operator and independent reserves consultants. Any evaluation will also take into account the possible upside of 2C resources from 20.5 square kilometer development area extension, as previously announced. Furthermore, the ongoing development of DDW (2P reserves area) is currently ahead of schedule with first gas expected in 2013."

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Rockhopper Extends Sea Lion Find West

- Rockhopper Extends Sea Lion Find West

Tuesday, August 09, 2011
Rockhopper Exploration plc

Rockhopper provided an update on the 14/10-6 appraisal well. The third appraisal well on the Sea Lion feature was drilled 4.1km to the west of the 14/10-2 discovery well on license PL032 (100% Rockhopper) and to a total depth of 2706m (drilled depth).

• Sea Lion Main Fan Complex
  • Results at upper end of expectations
  • Well confirms significant reservoir development and hydrocarbon charge within Rockhopper's currently interpreted Sea Lion mid-case area
  • Wireline log analysis indicates Sea Lion main fan net oil pay is 36.4m (119 feet)
  • Gross reservoir interval in Sea Lion main fan is 42m (138 feet) with net to gross of 87%
  • Management interprets this well as confirming Sea Lion main fan is full to spill
  • Reservoir quality good:
    • average porosity 21.6%, maximum 28.8%
  • Average Sw (water saturation) 21%
  • No oil water contact observed in the Sea Lion main fan
  • Formation pressure tests indicate reservoir at the well in communication with wells 14/10-2, 14/10-4 and 14/10-5
  • Downhole fluid samples collected confirmed as oil
  • Following this well, the board considers Sea Lion to be commercially viable
• Sea Lion Lower Fan Complex
  • Well developed lower sand package (sand B15) intersected beneath oil water contact of -2477m tvdss (total vertical depth subsea) and was water wet with no shows
  • 34m (112 feet) gross reservoir package with 85% net to gross
  • Reservoir quality good:
    • average porosity 20%, maximum 25.3%
  • Sand B15 showed significant thickening away from wells 14/10-2 and 14/10-5 as prognosed
  • Formation pressure tests indicate B15 sand to be in pressure communication with the Sea Lion main fan complex giving significant updip exploration potential
  • Deeper thin lower fan sands penetrated in wells 14/10-2 and 14/10-5 showing a separate deeper oil column not developed at this well location

Well 14/10-6 was designed to investigate reservoir and hydrocarbon presence within the Company's mid-case Sea Lion mapped area. 14/10-6 was the first well to penetrate the Sea Lion main fan to the west of the mapped structural low that runs north-south through Sea Lion. The well has been highly successful, proving a thick, high quality reservoir package and a substantial oil column.

Wireline logging operations have been completed. A number of mini DST (downhole Drill Stem Tests) were carried out within the main fan complex and oil was successfully flowed from the main fan. The results will now be interpreted and integrated with other wireline logging data to give an estimate of the potential well productivity. The Company does not consider it necessary to perform a full production test and the well will now be plugged and abandoned.

Once the results of this well have been integrated into the fast-track seismic covering the southern portion of licenses PL032 and PL033, a further announcement will be made detailing the seismic interpretation and the implications of well 14/10-6 for management estimates of resources within Sea Lion.

Upon completion of operations on 14/10-6 the Company intends to drill an exploration well 3.3km to the North West of the discovery well 14/10-2, outside of the Sea Lion Discovery Area. The well is designed to investigate the presence of reservoir and hydrocarbon charge towards the northernmost currently mapped extent of the Sea Lion Main fan.

Sam Moody, Chief Executive, commented, "The results of this well are at the upper end of expectations for the Sea Lion main fan complex and we are delighted to see these oil charged sands extending to the west as prognosed. The thickness and quality of reservoir encountered in the lower fan complex gives additional potential updip."

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BP: Valhall Oil Platform Restart Unlikely Before End-Aug

- BP: Valhall Oil Platform Restart Unlikely Before End-Aug

Tuesday, August 09, 2011
Dow Jones Newswires
LONDON
by Konstantin Rozhnov

BP said Tuesday production at the Valhall oil platform in the Norwegian sector of the North Sea, damaged in a July 13 fire, is unlikely to resume before the end of August, about two weeks later than originally planned.

The fire at the platform shut down around 60,000 barrels a day of Ekofisk crude output that feeds into global benchmark Brent. Oil production at the Valhall facility itself before the shutdown stood at 42,000 barrels a day.

"Production will be restarted when the necessary BP reviews and any required modifications have been completed," said BP spokesman Matt Taylor.

He said July 28 that damage to the Valhall platform, was modest and caused mostly by water used to extinguish the fire.

The Valhall platform shutdown comes on top of continuing unscheduled maintenance at the Nexen-operated Buzzard oil field, the largest of the 50 fields that contribute to Forties crude oil, the main component of Brent.

Also, the BP-operated Forties Pipeline System was closed last week for five-day planned maintenance, but it over-ran due to dense fog through much of the week, BP said.

"Forties Pipeline re-started on Friday evening in line with the plan and throughput volumes are increasing as more fields come back on line after their own maintenance programs," Taylor said Tuesday.

The Buzzard and Forties pipeline problems have led to nine cargoes of Forties crude being delayed in August, providing support for oil prices.

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

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Seadrill Strengthens Mid East Presence with KJO Deal

- Seadrill Strengthens Mid East Presence with KJO Deal

Tuesday, August 09, 2011
Seadrill Ltd.

Seadrill has been awarded two new contracts by KJO (AL-Khafji Joint Operations) in the joint development zone between the Kingdom of Saudi Arabia and Kuwait for the jackup rigs West Triton and Offshore Resolute. The assignments which will commence in direct continuation of their current contracts in Southeast Asia are each for a firm period of 3 years plus the time required to mobilize to the Arabian Gulf. Each contract also includes an option for KJO to extend the term for a further 1 year.

Alf C. Thorkildsen, Chief Executive Officer in Seadrill Management AS said, "These new contracts will strengthen the relationship with KJO, one of the key customers in the Arabian Gulf. In addition, relocating two rigs for term work and at attractive market rates serves our strategic desire to increase our long term presence in this active oil and gas region."

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