First oil produced from SNEPCO-operated Bonga North West project in Nigeria
Shell's deep-water subsidiary in Nigeria, Shell Nigeria Exploration and Production Company Ltd (SNEPCo) started oil production from the first well at the Bonga North West deep-water development off the Nigerian coast on August 5, 2014.
The Bonga project, which began producing oil and gas in 2005, was Nigeria's first deep-water development in water depths over 1,000 meters. Bonga North West represents a significant step forward for the project.
Oil from the Bonga North West sub-sea facilities is transported by a new undersea pipeline to the existing Bonga floating production, storage and offloading (FPSO) export facility. The Bonga FPSO has been upgraded to handle the additional oil flow from Bonga North West which, at peak production, is expected to contribute 40,000 barrels of oil equivalent per day, helping to maintain the facility's overall output.
Four oil producing wells and two water injection wells in the Bonga North West development will be connected to the FPSO, from where oil is loaded onto tankers for shipping around the world.
The Bonga project is operated by SNEPCo, which holds a 55% stake. The other project partners are Esso Exploration & Production Nigeria (Deepwater) Ltd. (20%), Total E&P Nigeria Ltd. (12.5%) and Nigerian Agip Exploration Ltd. (12.5%) under a Production Sharing Contract with the Nigerian National Petroleum Corp.
Apache reports 'first' oil discovery offshore Western Australia
Apache Corp. has reported an oil discovery at the Phoenix South-1 well - the company's first discovery in Australia's offshore Canning Basin.
Wireline and formation pressure tools have confirmed at least four discrete oil columns ranging in thickness between 85 and 151 feet (26 to 46 meters) in the Triassic Lower Keraudren formation, within an overall sand-rich section between 13,648 and 14,763 feet below sea level (4,160 to 4,500 meters).
Six light oil samples have been recovered from three intervals to date; permeability measurements from the sampled zones indicate a productive oil reservoir with preliminary estimates that there might be as much as 300 million barrels of oil in place. Evaluation of the formation penetrated in the Phoenix South-1 is under way, and final calculation of hydrocarbon pay will depend on additional analysis.
The Phoenix South-1 well is located in permit WA-435-P, offshore western Australia, 110 miles (180 kilometers) north of Port Hedland in 435 feet (133 meters) of water. Apache has a 40% interest and operatorship of WA-435-P and the adjacent permit WA-437-P. Co-venturers are Carnarvon Petroleum (20%), Finder Exploration (20%) and JX Nippon (20%). Apache also has exercised its option to acquire 40% interest and operatorship of two additional adjacent permits (WA-436-P and WA-438-P) for a total position of more than 5 million acres (20,000 square kilometers).
The area includes a number of large, undrilled structures, including the Roc prospect on WA-437-P, with potential to be significant additional oil accumulations. Apache Northwest Pty Ltd. and JX Nippon have formally notified Carnarvon that they are committed to drilling the Roc prospect in WA-437-P in the North West Shelf of Western Australia. In doing so, they will pay the earn-in costs to a cap of $70 million (gross). The Roc prospect is a follow-up exploration well to the major new oil discovery made at the Phoenix South-1 well.
In addition, Apache will acquire a 40% interest in WA-436-P and WA-438-P. Apache will assume operatorship of these permits and Carnarvon will retain a 30% interest.
EIA: Marcellus region production continues growth
Natural gas production in the Marcellus region exceeded 15 billion cubic feet per day (bcf/d) through July, the first time ever recorded, according to recent EIA data. The Marcellus Region, mostly located in West Virginia and Pennsylvania, is the largest producing shale gas basin in the United States, accounting for almost 40% of US shale gas production. Marcellus Region production has increased dramatically over the past four years, increasing from 2 bcf/d in 2010 to its current level.
The rig count in the Marcellus Region has remained steady at around 100 rigs over the past 10 months. Given the continued improvement in drilling productivity, which EIA measures as new-well production per rig, EIA expects natural gas production in the Marcellus Region to continue to grow. With 100 rigs in operation and with each rig supporting more than 6 million cubic feet per day in new-well production each month, new Marcellus Region wells coming online in August are expected to deliver over 600 million cubic feet per day (MMcf/d) of additional production. This production from new wells is more than enough to offset the anticipated drop in production that results from existing well decline rates, increasing the production rate by 247 MMcf/d.
Pluspetrol to Invest $500M in Peru Natgas Block
In the next two years, The Camisea Consortium, led by Pluspetrol, plans to invest $500 million to explore and develop natural gas block 88 in southern Peru. Blocks 88 and 56 are managed by the consortium (Repsol, Hunt Oil, SK Innovation, Sonatrach, and Tecpetrol are partners) and, according to the energy and mines ministry, are estimated to contain approximately 13 trillion cubic feet of proven natural gas reserves.
Central Petroleum continues Whiteley-1 drilling in Queensland
Central Petroleum Ltd. is continuing drilling of the Whiteley-1 unconventional gas exploration well in permit ATP912 in Southern Georgina Basin, Queensland, Australia.
Whiteley-1 is the first of a program of unconventional gas exploration wells operated by Central (via subsidiary Merlin Energy Pty Ltd in partnership with Total) and is to be drilled using Enerdrill Rig 2.
The primary objective is the Lower Arthur Creek Formation, which will be fully cored and sampled for gas desorption and reservoir properties, in addition to an extensive logging program to evaluate the hydrocarbon resource potential.
The second well in the program, Gaudi-1, is scheduled to spud in mid-September 2014 in ATP909.
Each well is expected to be drilled to a total depth of approximately 8,202 to 9,514 feet respectively, will be extensively cored, and are estimated to be drilled and cased in approximately 60 days.
Lundin spuds exploration well on Alta prospect
Lundin Norway AS has spudded exploration well 7220/11-1 in PL609 of the Alta prospect in the Barents Sea. The well, to be drilled to a total depth of 2,393 meters below mean sea level, is located northeast of the Gohta discovery.
The Island Innovator rig, which recently completed drilling Gohta appraisal well 7120/1-4s, will conduct the drilling over a period of 60 days.
Lundin estimates Alta's unrisked, gross prospective resources total 261 million boe.
Lundin Norway has operated PL609 with 40% interest since 2011. The remaining interest is split between RWE Dea Norge AS and Idemitsu Petroleum Norge AS at 30% each.
3D Oil sells 20% stake in Otway Basin's T/49P permit
3D Oil Ltd.'s sale of a 20% working interest in the T/49P exploration permit in Otway Basin, offshore Tasmania, Australia to Beach Energy Ltd. is complete and the company has received the remaining US$2.31 million (AUD 2.5 million) of the US$2.77 million (AUD 3 million) purchase price.
The permit was previously held at a 100% equity interest by 3D Oil since being acquired via government gazettal in April 2013. 3D Oil now retains an 80% interest and operatorship of the T/49P joint venture, with Beach Energy holding a 20% interest.
The permit covers an area of 1,915 square miles in water depths generally no greater than 328 feet. The T/49P joint venture plans to initiate an exploration program with the acquisition of at least 291 square miles of 3D seismic in late 2014.
CORRECTION
OGFJ published incorrect data for Denbury Resources in the OGJ150 Quarterly survey results that ran in the August 2014 issue of OGFJ. Denbury's total assets as of March 31, 2014, were $11,867,958,000, or rounded off to $11.9 billion. The company's stockholders' equity should have been stated as $5,148,000,000, rounded off to $5.1 billion.
As a result, Denbury should have been listed as the No. 18 ranked company, according to total assets, and the No. 16 company, based on stockholders' equity.
OGFJ regrets the error.
BRIEFS
OPEC earnings decline
"The US Energy Information Administration (EIA) estimates that, excluding Iran, members of the Organization of the Petroleum Exporting Countries (OPEC) earned about $826 billion in net oil export revenues in 2013. This was a 7% decrease from 2012 earnings, but still the second-largest earnings totals during the 1975-2013 period for which EIA has tracked OPEC oil revenues. OPEC earnings declined largely for two reasons: a drop in OPEC oil production in 2013 (largely because of the supply disruption in Libya), and a 3% decline in average crude oil prices."--EIA
Cash from ops flattens
"Cash from operations for major energy companies has flattened in line with flat crude oil prices, which have had the lowest price volatility in years. Based on data compiled from quarterly reports, for the year ending March 31, 2014, cash from operations for 127 major oil and natural gas companies totaled $568 billion, and major uses of cash totaled $677 billion, a difference of almost $110 billion. This shortfall was filled through a $106 billion net increase in debt and $73 billion from sales of assets, which increased the overall cash balance. The gap between cash from operations and major uses of cash has widened in recent years from a low of $18 billion in 2010 to $100 billion to $120 billion during the past three years."---EIA's Today in Energy
