E&P Highlights: July 31, 2023

From a gas discovery in Austria to a farm-in in Turkey, below is a compilation of the latest headlines in the E&P space. 

Activity headlines

OMV Logs Gas Discovery In Austria

OMV announced on July 28 a new natural gas discovery with its Wittau Tief-2a exploration well in Lower Austria. 

The well was drilled to a final depth of 5,000 m after five months of operations.

Preliminary evaluation indicates potential recoverable resources of 28 MMboe, which OMV said represents the largest natural gas discovery in the country in four decades. OMV said it is considering different options to further appraise the field, as well as a fast-track development in conjunction with the OMV-operated natural gas facility in Aderklaa, situated 10 km from the Wittau Tief discovery. After full development of the discovery, OMV expects its natural gas production in Austria to increase by 50%.

Contracts and company news

Trillion Farming into Turkish Blocks

Trillion Energy International Inc. announced on July 31 it has entered into a farm-in agreement with Derkim Poliüretan Sanayi ve Ticaret AS to earn 50% interest in three oil exploration blocks onshore Turkey. 

The oil blocks cover 374,325 acres in the newly defined Cudi-Gabar petroleum province, Southeastern Turkey. To earn the 50% interest, Trillion must acquire 351 km of 2D seismic in 2023 and drill 4 wells in 2024. 

Turkey’s portion of the Cudi-Gabar province — which is central to an active petroleum system extending up from Iraq and Syria — contains several major oil fields, including Sehit Esma Cevik, discovered in 2022 and Sehit Aybuke Yalcin, discovered in 2023. 

Block M47C3, C4, the Eastern Block, is 15 km by 30 km and is 12 km from the newly discovered Sehit Aybuke Yalcin Oil Field, which contains a reported 1 Bbbl original oil in place, and 11 km from the Sehit Esma Cevik Oil Field, reported to contain 250 MMbbl. Blocks M46C and M46D, or the Western Blocks, are a combined area of 30 km by 60 km and located 30 km west of the Eastern Block. 

No economic discoveries have yet been made on the oil blocks Trillion is farming into. 

Valaris Reactivating Drillship for 12-Well Contract

Valaris Ltd. announced on July 31 that it will reactivate the VALARIS DS-7 after receiving a $364-million, 12-well contract offshore West Africa for the drillship.

The contract is expected to begin in second-quarter 2024 and last about 850 days. The contract requires minimal customer-specific upgrades to the rig and does not include the provision of any additional services.

“This most recent award represents the seventh contract awarded to one of our high-quality floaters requiring reactivation since mid-2021,” Valaris President and CEO Anton Dibowitz said in a press release. “We continue to take a disciplined approach to rig reactivations, and we expect this contract to generate a meaningful return over the initial firm term.”