Norcen Energy Resources Ltd. is stepping up its exploration and development program outside its native Canada.
The non-Canadian focus for new operations is on Argentina, Venezuela, Indonesia, and Algeria.
In Argentina, the Calgary company acquired interests in two additional blocks and is in the closing stages of increasing its working interests to 100% in two other blocks. As a result of these transactions, Norcen will hold an average 48% working interest in nine blocks covering 15.3 million gross acres in Argentina.
The recent acquisitions cover a 100% working interest in the 153,000 acre El Santiagueno block in the Neuquen basin and a 45% working interest in the 3.5 million acre offshore San Julian block.
The El Santiagueno spread produces an average 700 b/d of oil and -as liquids and 2.3 MMcfd of gas. Recoverable reserves are estimated at 3.2 million bbl of liquids and 7.5 bcf of gas. El Santiagueno lies adjacent to the Agua Salada producing block in which Norcen holds a 30% interest.
Norcen called its entry into the San Julian block "particularly timely" with exploration approaching the drilling stage.
Geophysical evaluation, including acquisition of about 4,500 km of seismic data, resulted in many leads. The two main prospects have the potential for recoverable reserves in excess of 200 million bbl, Norcen said. First drilling has been proposed for this year.
The company's plans for Argentina in 1994 include the drilling of as many as seven wells, including four rank wildcats.
The first of these wells got under way last month on the offshore Salado Marina block. Norcen is being carried for a portion of its share of the cost of this well while retaining a 16.875% interest in the block.
OTHER COUNTRIES
Effective Mar. 1, Norcen also became active in Venezuela with start of operations on the Orituapano-Leona block. During the first 3 years of the project, Norcen expects development alone to boost oil production to 25,000 b/d from the current 9,000 b/d.
Gross proved oil reserves on the block are about 100 million bbl. Initial estimates of potential reserves showed a further 50-100 million bbl of oil available. More recent analysis suggests those estimates were "some-what conservative," Norcen said.
Of 11 Orituapano-Leona wells to be drilled in the first year, two will focus on further evaluation of the reserve potential. Norcen holds a 45% working interest in this project.
In Indonesia, drilling of Norcen's part interest 1 Baluran offshore well on the Brantas block had reached 10,500 ft at last report en route to a target depth of 14,500 ft.
Plans are firm for the drilling of three more wells on the block. These will be drilled onshore, back to back, with the first hole scheduled to commence drilling in May.
Norcen holds a 20% interest in the Brantas block.
In Algeria, plans also are firm for a three well, back to back, drilling program on the Mehaiguene block, where Norcen holds a 45% interest. The first well in this program is to be,-in drilling early this month.
