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Oil & Gas Round-Up: 23 January

23 January 2009

The production test at the Breagh horizontal appraisal well in the UK North Sea, has been successfully completed, producing at a maximum rate of 26 million cubic feet of gas per day from a number of perforations at various intervals in the 1200 foot section. Faroe Petroleum (FPM), EnCore Oil (EO.) and Stratic Energy (SE.) have interests in Breagh.

Serica Energy (SQZ) said the Chablis appraisal well in the UK Southern North Sea has confirmed that the reservoir quality and hydrocarbon saturation are markedly better in the current well than they were in the 2002 discovery well. The two wells also share a common gas-water contact, confirming continuity of the reservoir. However, the gas-bearing Leman reservoir was thinner than in the 48/16b-2 well. Privately owned Hansa Hydrocarbons Ltd farmed-in to a 35% interest in the licence by contributing to the cost of the well.

In the US, Pantheon Resources (PANR) said the Acosta #1 well has commenced testing operations, however initial perforations of the Miogyp reservoir have indicated apparent formation damage, probably from "kill fluid" from the original Acosta well. Remedial treatments are currently being considered to determine if this blockage can be overcome.

Pantheon's Vision Rice University #1 well has experienced some delays building angle for the horizontal section of the well and the operator has retraced to approximately 13,900 feet measured depth and will recommence drilling to build a new angle for the horizontal section.

Aminex (AEX) said logs at the SW-39 well at South Weslaco, Hidalgo County, Texas indicate approximate net pay in excess of 60 feet in several gas-bearing sands with the potential of up to 90 feet in total. SW-39 will be flow-tested and tied into the existing production facilities as soon as possible.

Gulfsands Petroleum (GPX) has commenced drilling operations on the Yousefieh-2 appraisal well in Block 26, Syria. The Yousefieh-2 well is planned to be drilled as a vertical well to a total depth of approximately 2060 meters, and will target the Cretaceous aged reservoirs found to be oil bearing in the Yousefieh-1 discovery well.

Dominion Petroleum (DPL) has commenced drilling the Mihambia-1 exploration well in Tanzania using the Caroil-6 rig. The Mihambia-1 well is being drilled in the central part of the
Mandawa PSA area and has potential for both oil and gas reserves in the Middle to Lower Jurassic reservoir targets.

Borders & Southern Petroleum (BOR) said an initial review of the 3D seismic interpretation over its South Falkland Basin licences had revealed that within several play fairways, multiple prospects have been generated that, in common with analogous geological settings, could deliver in the success case multi-billion barrels of total recoverable reserves. Borders and Southern now plans to seek partners to help finance the drilling programme.

In the Netherlands, Northern Petroleum (NOP) said analysis of the results of the hydraulic fracturing of the gas reservoirs at Wijk en Aalburg and Brakel, suggest that the planned combined initial production rates for later in 2009 could be more than doubled, at rates towards the upper limit of the gas plant designed capacity of around 11 mmcfd.

Still in the Netherlands, Northern Petroleum has commenced well site construction works at Tiendeveen, a gas prospect, which with Nieuwendijk, an oil prospect, forms a two well exploration drilling programme being carried out in during the first part of 2009.

Tower Resources (TRP), has received Government approval of its Environmental Impact Assessment for Iti-1, the Company's first well to be drilled in Exploration Area 5, Uganda.

Ascent Resources (AST) and Leni Gas & Oil (LGO) are planning to drill a 450m sidetrack at the PEN-104 gas production well in the Penészlek Development Area of eastern Hungary. The well has been shut-in due to the failure of a compressor at the downstream gas processing facility which has caused unusually high export pipeline pressures. Repairs to the compressor are expected to be completed by March 2009. A sidetrack of the currently suspended PEN-102 well will be undertaken as well.

Island Gas Resources (IGAS) has received approval for its plans for the commercial production of coal bed methane gas from its site at Doe Green, between Warrington and Widnes. In a first for the UK, the CBM gas produced will be used to generate electricity. IGas is currently drilling additional lateral legs at the Doe Green site.

Offshore Hydrocarbon Mapping (OHM) welcomed the UK High Court decision to revoke three key patents on Controlled Source ElectroMagnetic (CSEM) surveying granted by the European and UK Patent Offices to emgs of Norway. The case was brought by Schlumberger on the grounds that the ideas that the patents sought to protect were already well known and in the public domain.

"CSEM is a very valuable tool for oil and gas exploration. Too much time, effort and focus has been placed on dealing with emgs's now discredited patent claims rather than promoting the value of this technology to the industry", said OHM's statement.

Roxi Petroleum (RXP) has agreed to farm-out up to 35% of the BNG Contract Area in Kazakhstan, to Canamens. Roxi has also announced that the last two appraisal wells in the 2008 drilling programme, NK5 and NK6, on the NW Konus field, within the Galaz Contract Area have encountered encouraging net oil pay intervals in Arskum and Upper Jurassic sandstone, from wireline logging evaluation.

Black Rock Oil & Gas has changed its name to Woburn Energy and has a new ticker (WBN).

Gold Oil (GOO) has raised £645,000 through a placing of new shares at 4 pence per share to fund the Burdine oil field development in Colombia.

Northern Petroleum (NOP) and Shell Italia E&P S.p.A ("Shell") have completed the farm out of six of Northern's offshore Sicily Channel licences in Italy, to Shell. At completion Shell paid €1.9 million covering all of Northern's back-costs on these licences. Shell will further pay all costs of the Q4 2008 reprocessing and the Q1 2009 2D seismic programme. Thereafter they will fund all costs of two 3D seismic surveys if proposed by Shell and the optional drilling and testing of a first well.

PetroLatina Energy (PELE) has issued secured convertible loan notes of which a subsidiary of existing shareholder, Tribeca Oil & Gas, Inc., has subscribed for US$4.875 million. The funds have been raised to cover the additional costs of a sidetrack and completion of Petrolatina's first exploration well, Colon-1, on the La Paloma block, which is close to reaching its target depth of approximately 9,200ft.

Egdon Resources (EDR) has been awarded a new French exploration permit. The Pontenx Permit is located on the southern margins of the Parentis Basin, an oil productive region on the Atlantic coast of France to the south of Bordeaux. Egdon will operate the permit with a 40% interest. The other partners in the joint venture group are Eagle Energy Limited (40%) and Nautical Petroleum (NPE) (20%).

And finally, the same editorial team that wrote the long running Platts' "North Sea Letter" which ceased publication in December (Platts' decision), has resurfaced. Meg Leitch, John Kendall and Meg Chesshyre are now looking for old and new subscribers to their own publication "North Sea Reporter" which is similar in content and style to the old North Sea Letter but with a few added bells and whistles. For subscription enquiries contact john.kendall@klenergypublishing.com