Calgary-based EnCana Corp. has completed a successful appraisal program on its June 2001 Buzzard discovery in the U.K. North Sea and, thanks to strong results, raised its estimate of the size of the field. The company drilled three appraisal wells, the 20/1-3, 20/6-6, and 20/1-4. The first two tests encountered oil-bearing sands and confirmed the extent of the field, which was discovered by well 20/6-3 on License P986. Additionally, well 20/1-4 established a significant oil-bearing reservoir within Block 20/1 of License P928 (South). Currently, EnCana estimates the field contains between 800 million and 1.1 billion barrels of oil in place. First production is slated for 2005. Since it discovered Buzzard, EnCana has drilled eight appraisal wells and sidetracks into the structure. A 3-D seismic survey is presently being shot over the field. Interest-owners in P986 are EnCana, 45.01%; Intrepid Energy North Sea Ltd., 30%; BG Group, 19.99%; and Edinburgh Oil & Gas Plc, 5%. Partners in P928 (South) are EnCana, 35.29%; Intrepid, 29.41%; BG, 29.41%; and Edinburgh, 5.88%. EnCana operates both licenses. 1 Canada ChevronTexaco Canada, with partners Petro-Canada and Norsk Hydro, spudded a new deepwater well some 43 miles southwest of Sable Island, offshore Nova Scotia. The Chevron Newburn H-23 well, licensed to 20,992 ft., is targeting a deep turbidite prospect in the Mahone Block (Exploration License 2359) at an estimated cost of C$76 million. There is considerable interest in the potential of the deep turbidite play, reports Calgary-based consulting firm Canadian Discovery Ltd., although a discovery has not yet been made. EnCana has suggested that this play has an ultimate gas potential between 5- and 25 trillion cu. ft. In separate activity, Canadian Superior Energy and partner El Paso Oil & Gas are moving closer to spud with CSE's shallow-water Marquis prospect, targeting Jurassic Abenaki reef. The location is on trend with and some 16 miles northeast of Encana's Deep Panuke discovery. 2 Canada Calgary firm CanScot Resources recently announced a significant gas discovery on its Corbett Creek prospect in west-central Alberta. The CanScot Echoex Corbett 6-30-61-6W5 well tested gas from three formations, and was production tested at a restricted rate of 2.1 million cu. ft. per day from the Mississippian Banff formation. A second well on the prospect has been drilled at 7-25-61-7W5, encountering net gas pay in two prospective zones. The well was completed in the Banff formation. Testing indicates that it has a productive capability of 1 million cu. ft. per day. A third well, the CanScot Echoex Corbett 15-19-61-6 W5M, is being drilled and will evaluate the extent and productivity of the three pay zones encountered in the discovery well. The company, which has a 49% working interest in seven adjacent sections of land, plans to construct a pipeline and facilities, with the aim of bringing the wells on production by October. 3 Canada Paramount Resources, Calgary, and Anadarko Petroleum, Houston, appear to have been successful in the hunt for deeper gas production in the Liard Basin, Northwest Territories, says Canadian Discovery. The partners drilled two deep Devonian tests on their Bovie Lake acreage this past winter. These wells were targeting Devonian gas prospects similar to Chevron Canada's Nahanni prospect, in which the prolific 1999 K-29 well has produced at rates of 75 million cu. ft. of gas per day. The first well, Paramount Anadarko Bovie J-76, was drilled to a total depth of 10,988 ft. and was completed in late March. The second well, Paramount Anadarko Bovie F-66, was drilled to 11,047 ft. and rig-released in early April. Both wells are listed as suspended. Paramount has applied to the National Energy Board for a Significant Discovery License for at least one of these wells, indicating some success. 4 Brazil TotalFinaElf has made a major oil discovery in Block BC-2 in the deepwater Campos Basin. The 1-TFE-1-RJS exploratory well, drilled in 7,874 ft. of water, encountered a significant oil column. The company is conducting tests, and has not released further information. TotalFinaElf operates Block BC-2 and holds a 35% interest; Petrobras also has 35%; Royal Dutch/Shell holds 15%; and Enterprise Oil, 15%. Separately, Brazil's fourth licensing round drew successful bids of $33 million for 21 blocks out of 54 on offer. The Agencia Nacional do Petroleo (ANP) awarded eight blocks to Petrobras, five of which it took in partnerships with other firms. Additional winners include BHP Billiton, which took a block in the Campos Basin; Devon Energy, with one ultradeep block offshore Maranhao in the northeast; Newfield Exploration, a shallow-water block off Espirito Santo; Maersk Olie; a deepwater block in the Santos Basin; Shell, a shallow-water block also in the Santos Basin; and Partex Oil & Gas, one onshore block in Bahia. 5 U.K. A North Sea discovery drilled by TotalFinaElf flowed gas at the daily rate of 35 million cu. ft., with 1,400 bbl. of condensate, during each of two tests. The 3/15-9A well was drilled in 394 ft. of water on the Forvie North prospect in Block 3/15 to a total depth of 11,680 ft. The discovery is in the greater Alwyn area, which contains Alwyn North, Dunbar, Ellon, Grant and Nuggets fields. Total production from the complex is some 180,000 bbl. of oil equivalent per day. 6 Norway Norsk Hydro has completed an appraisal well in Ormen Lange Field, in Block 6305/4-1 in the Norwegian Sea. The Norwegian Petroleum Directorate says the test confirms the field contains 14.1 trillion cu. ft. of gas. Ormen Lange Field is in blocks 6305/4, 6305/5, 6305/6 and 6305/8; the discovery well was drilled in 1997. First production is expected in 2006. Hydro is operating the development phase of the project; its partners are BP, ExxonMobil, Statoil, Shell and Petoro. 7 Denmark Phillips Petroleum has reached a total depth of 19,528 ft. at its Svane-1 exploratory well on Denmark's North Sea Block 4/98. The Svane-1, in the eastern section of the Central Graben, is one of the deepest exploration wells yet drilled in the North Sea. The operator is now testing the well, which encountered shows of hydrocarbons. Phillips operates Block 4/98; its partners are Dong, Veba and Norsk Hydro. 8 Equatorial Guinea Amerada Hess has added to its string of oil discoveries in Block G in the offshore Rio Muni Basin. The G-10 exploration well encountered 157 net ft. of oil pay and 13 net ft. of gas pay. It was drilled to a total depth of 6,027 ft. in approximately 323 ft. of water. The discovery, dubbed Abang, is about 14 miles northeast of Ceiba Field. The company adds the find to its Okume, Oveng, Ebano, Akom and Elon fields in the northern part of Block G, which it operates and in which it holds an 85% working interest. Energy Africa Ltd. holds the remaining 15% interest, and the Equatorial Guinea government will have a carried 5% participating interest in any commercial production. 9 Gabon Dallas-based Pioneer Natural Resources Co. has drilled another successful well on its offshore Olowi Block. The Olowi Marin-2 was drilled to a total depth of 3,445 ft. approximately 2.5 miles southeast of Pioneer's Olowi Marin-1 discovery well. The appraisal well flowed oil at the rate of more than 2,000 bbl. per day, with no water, from a 45-ft. interval in a Lower Gamba reservoir. Pioneer operates the 314,000-acre permit and holds a 100% working interest. The company now plans to drill the Gnadi Marin-1 well, some 5.5 miles north of the Olowi Marin-2. 10 Russia TotalFinaElf is taking a 52% operating interest in the license covering Vankor Field in West Siberia from U.K. independent Anglo Siberian Oil Co. The Lower Cretaceous field, discovered in 1988, contains recoverable reserves of 906 million bbl. of oil and 2.6 trillion cu. ft. of gas. Recently, TotalFinaElf also farmed into Black Sea acreage operated by Yukos. The Shatsky Ridge is an undrilled deepwater structure in the Russian sector of the eastern Black Sea. Initially, the companies plan to evaluate existing data and acquire new seismic over the prospect. 11 Vietnam Cuu Long Joint Operating Co., a consortium headed by Conoco, has spudded its first exploratory well in its Block 15-1 concession in the offshore Cuu Long Basin. The well, on the King Lion prospect, is projected to a depth of 13,124 ft. At least three additional wells are planned for this year on the block, which is held by Conoco, PetroVietnam, Korea National Oil, SK Corp. and Geopetrol. 12 China Oklahoma City-based Kerr-McGee Corp. reports continued exploratory success on Block 04/36 in Bohai Bay. The company's CFD 11-3-1, in 90 ft. of water some 10 kilometers north of CFD 11-2 Field, encountered 45 gross ft. of hydrocarbons in the Guantao sandstone. The CFD 16-1-1, in 74 ft. of water some 15 kilometers southwest of CFD 11-1 Field, encountered 70 gross ft. of hydrocarbon pay in the Minghuazhen and 20 gross ft. in the Dongying reservoirs. Appraisal tests are planned for the discoveries later this year. Kerr-McGee operates Block 04/36 with an 81.8% foreign contractor's interest; the remaining 18.2% is held by Houston-based Ultra Petroleum. 13 Australia Perth firm Mosaic Oil says its Churchie-3 exploratory well in Queensland's onshore Surat/ Bowen Basin has flowed 20 million cu. ft. of gas per day through a 1-in. choke from the Permian Tinowon Sandstone. The well was drilled to a total depth of 6,969 ft. and encountered the reservoir in the last 88 ft. of hole. This is one of the largest gas flows recorded in the Surat/ Bowen Basin area, according to Mosaic. It operates the Churchie-Noorindoo complex and holds a 49% interest; Santos Ltd. holds the remaining 51%.
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