Petroproduccion lets seismic pact off Ecuador

Petroproduccion, an affiliate of Petroecuador, has issued a letter of agreement for Scan Geophysical ASA to implement a major 2D seismic program off Ecuador in support of the government’s plan to develop hydrocarbon prospects in the region.

The agreement calls for Scan Geophysical to shoot about 10,000 km of 2D marine acquisition in waters along most of the Ecuadorian coast, focusing on basins in Esmeraldas, Manabi, Guayas, and Santa Elena provinces. The agreement is subject to the parties finalizing a mutually agreeable contract.

The seismic program will be acquired utilizing Scan Geophysical’s new, technologically advanced vessel and onboard seismic equipment, including 8,000 m towed solid streamer.

Amistad gas field off the southwestern coast is Ecuador’s only Pacific offshore production, but several operators have drilled discoveries and established production to the south off Peru’s northwest coast.

Scan Geophysical also reported receipt of a contract from GX Technology (GXT) a subsidiary of Ion Geophysical, Oslo, to acquire as much as 8,000 km of long offset 2D data off Argentina, part of which will be used to complete GXT’s ArgentineSpan program. The two companies agreed to mobilize Scan Geophysical’s high-capacity 2D vessel MV Geo Searcher. Data acquisition is scheduled to begin immediately upon the vessel’s arrival in Argentina.

Eastern Star Gas and Gastar Exploration Ltd. reported an independently certified 82% increase in proved and probable reserves for the Narrabri coal seam gas project in New South Wales, Australia.

Proved reserves were unchanged at 21 bcf. The estimate of 2P gas reserves in the Bohena project area of PEL 238 rose to 336 bcf at Sept. 30, 2008, from 185 bcf on Dec. 31, 2007.

The increase is based on results from the first four core holes in the Dewhurst area, which show that the same thick, gas-saturated, and highly permeable coals identified in 2007 in the Bibblewindi corehole project extend southeast into Dewhurst.

Gastar expects more increases at the end of 2008 and in 2009 as data from other core holes and production pilot wells, including Edgeroi northeast of Bibblewindi, are included.

The first of four multilateral horizontal production projects is to spud in November, and commercial gas sales to the Wilga Park power station are to start by early spring 2009.

Affiliates of Malaysia’s Petronas cut gas and oil columns at the Banda East-1B appraisal well in the Atlantic off Mauritania.

Wireline logging indicated that the well intersected 22 m of net gas pay and 7 m of net oil pay. TD is 2,716 m.

The well, in 300 m of water, is to be cased and tested for gas deliverability. No oil test is planned. Banda oil and gas field spans PSC Areas A and B.

Petronas entities hold 53.8% interest in the well. Tullow Oil PLC has 24.3%, Mauritania Holdings BV has 13.1%, Roc Oil Co. Ltd. 4.2%, Fusion Mauritania A BV 3%, and FP Mauritania A BV 1.6%.

MGM Energy Corp., Calgary, reduced its 2008-09 winter drilling program to three wells from four, citing lack of regulatory progress on the Mackenzie Valley gas pipeline project.

The three wells to be drilled are Ellice J-27 on Ellice Island to test the Taglu formation, Ellice J-17 to test a stratigraphic play on the west side of Langley Island, and Ellice A-25 to test a footwall of the Ellice Island anticline.

The first well is to spud by Dec. 25. The company called its working capital position strong.

Laramie Energy II LLC, private Denver operator, will begin continuous drilling in the second half of 2009 on leases held by Dejour Energy USA Inc., Vancouver, BC, in the northwestern Piceance basin in Colorado.

Laramie Energy will have the right to earn up to 55% of 22,000 gross acres held by Dejour by completing at least four commercial wells.

The agreement allows Dejour to focus internal resources on preparing for the drilling in 2009 of multiple wells to the Williams Fork formation at Gibson Gulch and Roan Creek in the basin and to continue work on other potential joint ventures in the area.

The oil conservation commission designated the Eumont State-1 oil discovery in Lea County, NM, as the Urssey Tank (Yates-Seven Rivers) pool.

The well is flowing at more than 150 b/d of oil on a 16/64-in. choke from 3,962-68 ft, and cumulative production exceeds 30,000 bbl, said Saxon Oil Co. Ltd., Dallas, 15% working interest owner.

The operator, which has elected not to increase the flow rate to the 350 b/d allowable to optimize ultimate recovery, plans to drill at least one offset well on an adjacent proration unit in the first quarter of 2009.

Delta Petroleum Corp., Denver, expects to have encountered 4,500 ft of stacked tight gas sands below basalt and reach total depth by the end of 2008 at its exploratory well in the Columbia River basin in Washington.

The Gray 31-23 is in Kittitas County on the 20,000-acre Bronco I prospect.

Delta Petroleum acquired EnCana Corp.’s leasehold position earlier this year and sold a half interest in its resulting 844,000-acre spread in Washington and Oregon to Husky Energy Ltd., Calgary (OGJ, Oct. 13, 2008, p. 44).