INTERNATIONAL HIGHLIGHTS

Shell reported that after several weeks of drilling offshore Alaska, the company has concluded its 2012 exploratory drilling programs in the Beaufort and Chukchi seas. "The mandatory close of the offshore Alaska drilling window brings to an end a season in which we once again demonstrated our ability to drill safely and responsibly in the Arctic," Shell said. "The work we accomplished in drilling the top portions of the Burger-A well in the Chukchi Sea and the Sivulliq well in the Beaufort Sea will go a long way in positioning Shell for another successful drilling program in 2013." The company plans to pick up where it left off when the sea ice retreats next summer.

North Slope nod for Exxon

A record of decision was issued by the US Army Corps of Engineers approving a Section 404 wetlands permit for an ExxonMobil-led Alaskan North Slope project for an NGL development in the Point Thomson field. The US major will begin construction on the project during winter 2012 to 2013. Point Thomson is the state's largest undeveloped oil and gas field, containing 25% of the North Slope's known conventional natural gas. Exxon-Mobil will build an initial production system at the field to process 10,000 b/d to be shipped through the Trans-Alaska Pipeline System. The Corps of Engineers said that the development project will include three drill pads, 16 km (10 miles) of road, a gravel mine, an airstrip, a barge-docking facility, and gathering and export pipelines.

GULF OF MEXICO

Ecopetrol's Dalmatian South discovery

Ecopetrol SA's US subsidiary Ecopetrol America Inc. has confirmed that its latest ultra-deepwater exploration well in the Gulf of Mexico (GoM) has hit oil. The Colombian company said the DC 134-1 well and a resulting sidetrack on the Dalmatian South prospect in the DeSoto Canyon area confirmed the presence of oil via wireline logs. The well was drilled in a water depth of 1,949 m (6,394 ft). Ecopetrol America has a 30% interest in the prospect, with the operator being Murphy Exploration and Production Co. The Dalmatian South lease (DC 134) covers an area of 23.3 sq km (5,760 acres) and is located approximately 113 km (70 miles) offshore Louisiana. The discovery also is located approximately 9.5 km (6 miles) southwest of the main Dalmatian field (operator Murphy 70%, Ecopetrol 30%) in DC 4, 47, 48, and 91. Production from the main field is expected to start in 1Q 2014.

ExxonMobil farms into Phobos

ExxonMobil has acquired a 20% stake in Anadarko Petroleum's deepwater Phobos prospect in the GoM and expects to spud a well before the end of the year. The prospect is 8 km (5 miles) south of the company's Hadrian South discovery, the company said in its third-quarter earnings call. ExxonMobil also drilled two appraisal wells on its Hadrian North discovery in 3Q 2012, which the company is lining up for development via a 100,000 b/d deepwater semisubmersible production platform, it said.

Chinook field producer completed by Petrobras

In Chinook field on Walker Ridge Block 469, Petrobras completed well 2CH (BP2) OCS G16997. The well was drilled to 8,040 m (26,378 ft) in the Lower Tertiary. It was initially tested as flowing an unreported amount of oil through perforations at 7,666 m to 7,916 m (25,150 ft to 25,970 ft). According to the company, commercial production started flowing from the well to the BW Pioneer FPSO in early September 2012. According to IHS Inc., the well is 21 km (13 miles) south of the FPSO and connected to it via a system of subsea equipment. Water depth in the area is 2,697 m (8,850 ft). Petrobras recently received exploration plan approval for its Ipanema prospect on Walker Ridge Block 376 (OCS G33375). The plan outlines the drilling of up to three tests on the tract.

SOUTH AMERICA

Third Sergipe-Alagoas find

A third ultra-deep discovery in a frontier Brazilian basin has been confirmed by Petrobras just 21 km (13 miles) southeast of the first find in the area. The state-owned major said it had confirmed the presence of light hydrocarbons in Block SEAL-M-426 in the Sergipe-Alagoas basin, part of concession BM-SEAL-11, which the company operates with a 60% stake. The company's partner is IBV Brasil, which has a 40% stake. Well 1-BRSA-1083-SES (1-SES-167), informally known as Farfan, is the latest find and will add momentum to Petrobras' emerging plans for an ultra-deep production hub in the Sergipe-Alagoas basin. The operator also revealed its 100%-owned Moita Bonita discovery in the adjacent BM-SEAL-10 block in August, some 35 km (22 miles) southwest of Barra. The Farfan well was drilled in a water depth of 2,720 m (8,924 ft) and hit a hydrocarbon column of 44 m (144 ft). Petrobras will drill the well to a planned total depth of 6,000 m (19,686 ft) and analyze the rocks and fluids obtained with the aim of submitting an appraisal plan to the National Agency of Petroleum, Natural Gas, and Biofuels (ANP).

Apache and Staatsolie sign in Suriname

Staatsolie Maatschappij Suriname NV and Apache Corp. have signed a production sharing contract (PSC) for a deepwater block off the northern coast of South America. Block 53 lies about 130 km (81 miles) off the northwest coast of Paramaribo, Suriname, with the PSC divided into exploration, development, and production phases, valid for 30 years. The parties have agreed to a minimum working program for the exploration phase, including geological surveys and exploration drilling. Apache will take full responsibility for all costs during the exploration period, which is divided into two phases with combined potential investment of up to US $230 million. The first phase is scheduled for three years with an optional second phase of two and a half years. In addition to a large planned 3-D seismic survey, two wells will be drilled in the first phase, with a third well to be drilled in the optional second phase. In 1Q 2013, Staatsolie will formally open its fifth international bidding round, with four blocks up for grabs – blocks 54, 55, 56, and 57 – on the Demerara Plateau.

Peru gas prize for Petrobras

Petrobras has hit gas and condensate with three wells onshore Peru, with a further well still ongoing. The Brazilian major said that the Urubamba, Picha, and Taini wells in Lot 58 in the Madre de Dios basin contain natural gas and condensate totaling 56.6 Bcm of recoverable natural gas and 113.7 MMbbl of recoverable condensate. The Paratori well being drilled in the same lot is expected to be completed in December, the company said, along with other exploratory studies on the southern area that could reveal additional volumes. A 3-D seismic survey conducted to support the delimitation and development plans for the area also has been completed and is being analyzed. Petrobras Energia Peru S.A., a wholly-owned subsidiary of Petrobras, is the operator with a 100% stake.

EUROPE

Irish independent Tullow Oil has farmed into Maersk Oil’s deepwater Tooq block in Baffin Bay offshore Greenland. (Image courtesy of Maersk Oil)

Tullow takes Greenland block stake

Tullow Oil has farmed into a frontier deepwater block offshore Greenland operated by Maersk Oil of Denmark. The Greenland government has approved the deal between Maersk and Tullow for the latter to take a nonoperated 40% equity position in Block 9 (Tooq license) in Baffin Bay, northwestern Greenland. Maersk will continue as operator of the license with a 47.5% interest, with Nunaoil, Greenland's state oil company, to hold a 12.5% interest. The Tooq license covers an area of 11,802 sq km (4,557 sq miles), and the work program for 2012 to 2014 includes the acquisition and processing of 3-D seismic data. Seismic acquisition of some 1,850 sq km (714 sq miles) has been completed following the submission and approval of a full environmental impact assessment, and the results are being evaluated. A decision whether or not to enter the next phase and drill an exploration well on the license will be made after the seismic evaluation has been completed.

UK's 27th round success

The UK government awarded a total of 167 new licenses in its 27th licensing round, with the Department of Energy and Climate Change (DECC) offering 330 North Sea blocks. A further 61 blocks are under environmental assessment. The DECC said interest in the North Sea is at record-breaking levels, with the round attracting a total of 224 applications covering 418 blocks, the most ever received. Energy Minister John Hayes said, "Our fiscal regime is now encouraging small fields into production, and our licensing regime supports new faces as well as the big players to invest. Importantly, we are guaranteeing every last economic drop of oil and gas is produced for the benefit of the UK." The UK remains a favored destination, he added, with the energy industry seeing "lots of potential and new opportunities."

Faroe to exit West of Shetland license

Faroe Petroleum is to cease operations in a frontier exploration license west of Shetland in the UK sector after deciding the economics are not good enough for a development to take place. The Atlantic Margin-focused independent said the P1161 license containing the Freya and Fulla discoveries, which the company operates with a 50% interest, will be relinquished. The company is partnered in the license by Canadian Overseas Petroleum. In July 2011, the company drilled an exploration well (206/5a-3) on the Fulla prospect, and the targeted Clair and Whiting reservoir sands were found to be oil-bearing. Further modeling of Fulla and Freya, located immediately to the south in adjoining Block 206/10a, showed, however, that there was relatively poor oil quality, smaller than expected resource size, and limited access to infrastructure. Therefore, they were not economically viable for development. Faroe did say it was also awaiting the results of two UK exploration wells being drilled: the deepwater North Uist well west of Shetland, in which the company has a 6.25% stake, and the Spaniards East well (8.4% interest) in the UK North Sea.

MIDDLE EAST

DNO goes with the flow in Oman

DNO International ASA has confirmed a flow rate of 7,000 b/d of 39? API oil and 15 MMcf/d of gas from its latest well offshore the Sultanate of Oman. The West Bukha-4 well in Block 8 was flowed via a 54/ 64 -in. choke through a test separator. The well will be connected to the export pipeline system within days and, at the initial test rates, is expected to nearly double current oil production from the West Bukha field to 15,000 b/d. The longest-reach well drilled offshore Oman at nearly 6,000 m (19,686 ft), West Bukha-4 targeted an area not penetrated by previous drilling and is the second of a three-well drilling campaign initiated last year in the block. Oslo-listed DNO holds a 50% interest in and operates the block containing the West Bukha and Bukha fields and their respective platforms. Korea's LG International holds the remaining 50% interest.

GeoGlobal’s Sara-1 wildcat was another disappointment for the operator offshore Israel. (Image courtesy of Noble Drilling)

GeoGlobal drills second Israeli duster

GeoGlobal Resources has suffered a second consecutive deepwater disappointment with its exploration program offshore Israel in the eastern Mediterranean Sea. The Canadian independent said the Sara-1 wildcat reached a final subsea TVD of 3,928 m (12,888 ft). Based on the cutting samples and logging performed, the well encountered approximately 98 m (322 ft) of high-quality reservoir sands in the lower Miocene/upper Oligocene, with good porosity and permeability. However, although there were indications that gas has migrated through the system, GeoGlobal said that the sands were wet, with no commercial quantities of hydrocarbons present. The Noble Homer Ferrington semisubmersible rig has been released.

AFRICA

Vaalco buys into Equatorial Guinea block

Vaalco Energy Inc. has acquired a 31% nonoperating working interest in a production and development area (PDA) in Block P offshore Equatorial Guinea from Petronas Carigali Overseas SDN BHD. The US independent paid US $10 million for the stake. The PDA, operated by Equatorial Guinea's state-owned GEPetrol, contains the Venus field, discovered in 2005. The field is estimated to hold between 15 MMbbl and 30 MMbbl of gross recoverable oil. The PDA also contains a number of exploration prospects that Vaalco believes are highly attractive, including the SW Grande and Marte prospects. The company expects to drill exploration wells in 2013 on both prospects. Partners in the PDA are GEPetrol (38.4%), Atlas Petroleum International Ltd. (5.6%), and Crown Energy Ventures Corporation (5%). The government of Equatorial Guinea has a 20% carried working interest.

Tullow hits oil onshore Kenya

Tullow Oil's Twiga South-1 exploration well onshore Kenya in Block 13T has encountered oil. Drilling is continuing, with partner Africa Oil Corp. to give further details on the drilling results after target depth has been achieved and necessary sampling and analysis completed. The Twiga South-1 structure is the second prospect to be tested as part of a multiwell drilling campaign in Kenya and Ethiopia and is the first discovery in Block 13T following the Ngamia-1 find earlier this year in Block 10BB. Tullow is the operator with a 50% interest in Twiga South, with Africa Oil holding the remainder.

Addax success in Cameroon

Addax Petroleum and its partners have made a discovery with their latest wildcat well in the Iroko block offshore Cameroon. The executive general manager of the National Hydrocarbons Corp., Adolphe Moudiki, and the CEO of Addax, Yi Zhang, jointly stated that the Padouk-1X probe in the Rio Del Rey basin hit 38.6 m (127 ft) total vertical depth (TVD) net oil and 65.1 m (214 ft) TVD net gas in six sands. Provisional contingent resources are 20 MMbbl of oil and 200 Bcf of gas, with further upside potential to be assessed during an appraisal program next year. The Padouk-1X well was drilled in a water depth of 42 m (138 ft). The well was temporarily suspended, with a possible reentry to be considered during the full development study already underway.

CENTRAL ASIA

Petrobangla raises Titas reserves

State-run Petrobangla has discovered a new onshore gas reserve with total reserves in place of up to 800 Bcf in the existing Titas gas field area. Around 560 Bcf of gas is believed to be recoverable, bringing the Titas field's remaining known recoverable reserves up to an estimated 2.75 Tcf. Petrobangla chairman Hussain Monsur said a 3-D survey conducted by Bangladesh Petroleum Exploration and Production Company Ltd. (Bapex) with CGGVeritas also had raised the Titas field's gas reserve potential to an estimated 8.05 Tcf, of which 6.19 Tcf is recoverable. Within the 3-D survey Bapex detected eight new gas layers in the field, the company said, and is planning up to 11 new wells to further assess and produce the gas. The Titas field is Bangladesh's largest gas-producing state-owned field, with gas output of approximately 450 MMcf/d.

ASIA PACIFIC

Chevron's Gorgon gas riches grow

Chevron has further added to its giant gas riches off western Australia with more drilling success in the deepwater Greater Gorgon area in the Carnarvon basin. The US major said its Satyr-4 exploration well confirmed approximately 67 m (220 ft) of net gas pay in the WA-374-P1 permit area approximately 120 km (75 miles) northwest of Barrow Island. The well was drilled in 1,088 m (3,570 ft) of water to a total depth of 4,579 m (15,023 ft). Chevron Australia is the operator of WA-374-P with a 50% interest, with its partners being Shell Development (Australia) Pty Ltd. and Mobil Australia Resources Company Pty Ltd. (25% each).

Shell kicks off Palta probe

Shell is underway with its latest deepwater wildcat off the coast of northwest Australia. The operator's Palta-1 probe is located approximately 70 km (43 miles) off the coast of the North West Cape in permit WA-384-P. The well, spudded mid-October by the Noble Clyde Boudreaux semisubmersible rig, is expected to take approximately 75 days to drill. The rig is working in a water depth of 1,350 m (4,429 ft). The large Palta prospect in the Exmouth sub-basin is estimated to hold up to 13.5 Tcf of gas in place. Shell announced that the well will allow the company to better understand the gas resources present in the area and that any future activities will be dependent on the results and be subject to a new approvals process.

Carnarvon basin exploration well hits 30 m of net gas pay

Chevron reported another discovery in its Greater Gorgon area offshore western Australia at exploration well Satyr-2. The Carnarvon basin well was drilled in the WA-374-P permit area to 3,796 m (12,454 ft) in 1,088 m (3,570 ft) total water depth. According to Chevron, the well confirmed approximately 39 m (128 ft) of net gas pay. The Satyr-2 well is Chevron's 15th discovery in Australia since mid-2009. Chevron Australia is the operator, with a 50% interest in WA-374-P and Satyr-2 discovery well in partnershi