Smaller companies are taking advantage of exploitation opportunities in France.
Cie. Geopetrol, based in the Paris suburb of Le Blanc-Mesnil, has acquired Elf and Esso Rep's interests in Paris basin and Alsace oil concessions for an undisclosed sum. Reserves in fields on the concessions boost Geopetrol's reserves to 3.7 million bbl. Acquired production averages 735 b/d, 67% more than Geopetrol previously produced.
Geopetrol is a fully owned affiliate of the Cie. Geofinanciere holding company which, through its company Cie. Geoservices is involved in the oil service business, namely in Cuba, India, Bolivia, and the U.S.
Set up 1 1/2 years ago, Geopetrol is a new species of operator in France spawned by low oil prices. It was set up with a very light structure to develop marginal fields that large groups like Elf and Esso find unprofitable. The offshoot of an oil service company, Geopetrol functions with a staff of two, manager Bertrand Launois said.
"We have an arrangement to sell the oil produced to Elf, which refines it in the Grandpuits or Reichstett refineries. We are not involved in exploration, or in gas development."
So far limited to the Paris basin where it also acquired marginal fields from Triton, Geopetrol is mulling extension of its activity into the Aquitaine basin.
Another company, Midland Madison Petroleum Corp., Paris, is involved in developing marginal fields. Midland, a joint venture of Parker & Parsley Petroleum Co., Midland, Tex., and Midland Madison Petroleum Co., Dallas, is made up of former Triton people in Europe.
Eric Dalbiez, who manages operations in France, said developing marginal fields is a means of finding the cash flow needed to finance exploration in France.
"It is a niche for light, flexible companies," he said. Midland has a staff of two people; other work is subcontracted.
Midland acquired two small fields, Charmottes and Champrose, in the Paris basin from Esso Rep. They produced 5-6 cu m/day.
Exploration is Midland's main business. It is involved in some dozen permits both in the Paris and Aquitaine basins. It took over a good part of the permits sold when Petrole Saint Honore went out of business in mid-1993.
Dalbiez said he has a good prospect in the Paris basin on Permis de Chalons, where drilling is scheduled early next year. In Aquitaine Midland is on Permis Trencal, in association with Madison, near Esso Rep's recent Permis de Lege finds. Good shows were tested on Permis Thibie in the Paris basin, but operations have been suspended for the time being.
Dalbiez is bullish about prospects in France. "The country is still very much underexplored," he believes.
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