Cuba
PetroVietnam Exploration Production Corp. let a contract to SCAN Geophysical ASA, Oslo, to shoot 4,000 line-km of 2D seismic in the Gulf of Mexico off Cuba.
The M/V SCAN Stigandi seismic vessel is to carry out the work in May and June on PetroVietnam’s Blocks N31, N32, N42, and N43 west of the island (see map, OGJ, Dec. 11, 2000, p. 42).
Kazakhstan
The KUL01 well on the 2.14 million acre Kul-Bas exploration block in Kazakhstan’s Ust-Yurt basin is a gas discovery north of the tie-in point of Kyzyloi gas field, said Tethys Petroleum Ltd., Guernsey, Channel Islands, UK.
Drilled to 1,945 ft, the well topped the Kyzyloi sand at 1,175 ft, about 328 ft shallower than in Kyzyloi field. The sand is more unconsolidated, potentially requiring screens for production.
A 10-ft perforated interval with 35% porosity was tested on various chokes and flowed at a rate of 2 MMcfd on a 40⁄64-in. choke. Absolute open flow potential is 3.2 MMcfd.
Tasaran sand, topped at 1,470 ft, had elevated gas levels during drilling, and wireline logs showed some gas saturation, but gas did not flow on test. The company continues to map Tasaran units in the area.
Nigeria
Frontier Oil Ltd. has spud the first of two planned appraisal-development wells on OML 13 at Uquo, a 1958 Shell oil and gas discovery in the eastern Niger Delta off Nigeria.
Uquo-5, projected to 8,500 ft, is to be followed by Uquo-6. The company hopes to start oil production in 2009 through ExxonMobil Corp.’s Qua Iboe terminal 8 km south.
The discovery well tested both oil and gas in more than nine reservoirs. Uquo-2 through 4 discovered three separate hydrocarbon structures, within which a total of 15 accumulations exist. Ten are gas-bearing, two are proven oil-bearing, and three are probably oil-bearing.
Frontier Oil, operator with 60% interest, and Gulf of Guinea Energy Ltd. of Nigeria with 40% have shot 233 sq km of 3D seismic in 2006-07 covering the entire license.
Mart Resources Inc., Calgary, and Network Exploration & Production Co. Nigeria Ltd. plans to begin drilling by the end of June in Qua Iboe field in the eastern Niger Delta.
Mart said the companies resolved a dispute and discontinued arbitration proceedings.
Qua Iboe is a multireservoir oil field discovered by Shell in 1960 and never produced. It was awarded to Network in the April 2004 marginal field allocation program.
Mart will provide capital to develop the two main oil reservoirs in return for a share of hydrocarbons produced from those zones. Mart and Network will jointly fund development of the other reservoirs and share the value of the hydrocarbons.
Tanzania
The government granted exclusive rights to Beach Petroleum Ltd., Adelaide, to negotiate to explore onshore and the southern half of Lake Tanganyika in western Tanzania.
The South Block covers 5,400 sq km and forms part of the 6,400-km-long East African Rift system as does Lake Albert. Oil seeps and surface slicks are well known on Lake Tanganyika, indicating a working petroleum system.
The company plans to negotiate the terms of a production-sharing agreement.
Quebec
Talisman Energy Canada has elected to drill the three remaining option wells under a farmout agreement from Questerre Energy Corp., Calgary, in Quebec’s St. Lawrence Lowlands.
Talisman, by completing the work program, will earn 75% interest in the original 719,000-acre block. Questerre retains a 4¼% gross overriding royalty on production from Talisman.
Questerre noted that the land lies in the heart of the lowlands between the Yamaska growth fault and Logan’s Line and runs from Quebec City to south of Lac Saint Pierre.
Drilling to start in the latter half of 2008 is to test multiple horizons including Trenton-Black River and the Utica and Lorraine shales.
California
Oil production from West Montalvo field in Ventura County began increasing in the quarter ended Mar. 30 due to remedial work and a 2007 extended reach offshore delineation well that went on line at more than 400 b/d, said Venoco Inc., Denver (OGJ, Sept. 3, 2007, p. 34).
The company expects the field’s production to rise through the year from the next development stages. It has identified a second offshore location and probably will shoot 3D seismic before drilling that well or onshore infill wells.
Meanwhile, the state lands commission plans to release the South Ellwood field draft environmental report this month. The approval process could be complete in 2009, and Venoco has begun buying right-of-way for a 10-mile pipeline to replace a barge operation.
New drilling would accelerate draining the eastern part of the field and eventually provide more than $100 million in revenue to Santa Barbara County.
New Mexico
The Rio Arriba County, NM, Board of County Commissioners adopted an ordinance in late April purporting to impose a 120-day moratorium on all oil and gas drilling on private lands within the county in the eastern San Juan basin.
Approach Resources Inc., private Fort Worth operator, received notice that after the moratorium expires, the county plans to require it to apply for a local zoning permit in a process that could take an additional 120 days.
The moratorium covers Approach Resources’ 90,300-acre El Vado East prospect in Rio Arriba County, and the company may not be able to drill eight wells before the primary term of the lease expires on Apr. 2, 2009. The company notified the lessor of the expected delay (OGJ, Sept. 3, 2007, p. 34).
Enhanced Oil Resources Inc., Houston, looks forward to starting carbon dioxide injection in Milnesand oil field in Roosevelt County, NM, in mid-June.
The reservoir has approached the pressures needed for a successful pilot CO2 flood, the company said. Water injection in the pilot area averages 500 b/d, and waterflooding on the pilot area perimeter is expected to continue for the foreseeable future at 600-1,000 b/d. Three of the four pilot producing wells have been reworked and reperforated and are averaging 10 b/d of oil. The fourth well is being reactivated.
New York
A group led by Unbridled Energy Corp., Calgary, is drilling the third of six planned wells in Ellery and Villenova towns, Chautauqua County, NY, to the Silurian Medina formation and is applying a new frac technique to promote longer propped length.
The first well, Reheiser-2, was flow tested after treatment at rates of 325-450 Mscfd and turned to sales.
Mittlefehdlt-1, due for a frac job May 23, is a project with Schlumberger Data & Consulting Services sponsored by the New York State Energy Research & Development Authority to acquire new microseismic data to image the created hydraulic fracture.
The project will collect new reservoir and fracture information in the Grimsby, Whirlpool, and Devonian shales in Chautauqua County to optimize treatments.
Bankers Petroleum Ltd., Calgary, said it has acquired 100% working interest in 19,000 gross acres in the Appalachian basin in upstate New York.
The company plans to spend $500,000 to shoot 2D seismic in search of hydrothermal dolomite targets on the acreage and if it drills will evaluate Ordovician Utica shale at interim depths.
Ohio
Equitable Production Co. plans an eight-stage frac on May 16 at the Rapier D1-16 well in Jackson County, south-central Ohio, in the Devonian Lower Huron shale.
The well was drilled to 1,900 ft true vertical depth and then 2,500 ft horizontally in 4 days. By drilling, fracturing, and flow-testing three wells, Equitable will earn a 50% working interest in 25,000 acres held by Unbridled Energy Corp., Calgary.
A second well, S&D D3-30, has been drilled and is due for a seven-stage frac in early June. Both wells had gas shows, and a third well is being drilled.
The two companies continued to jointly lease lands in an 11-township area.