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Regional Update


Cairn Energy reported that the SNE-4 appraisal well offshore Senegal encountered a gross oil column of 328 ft. Drilled as part of an appraisal campaign over the SNE field, which was discovered in 2014, the well confirmed the correlation and presence of principal reservoir units between each of the wells across the entire field. The 32 °API oil recovered to the surface was similar to that seen elsewhere in the field, according to initial indications. Cairn, the operator, has a 40% interest in the well with the other interests held by ConocoPhillips (35%), FAR (15%), and Petrosen (10%).

Eland Oil & Gas said that the company and operator Nigerian Petroleum Development Corporation (NPDC) have completed re-entry work and boosted production at the Opuama-3 well on the OML license in Nigeria. Workover operations included the perforation of two new intervals and production logging runs in both strings. The combined flow from the two strings was tested for 1 hr on a 48/64-in. choke and produced at a rate equivalent to 10,584 B/D of dry crude. NPDC holds a 55% interest in the license with the remaining share held by Elcrest Exploration and Production Nigeria, Eland’s joint-venture subsidiary.


SapuraKencana Petroleum reported May 31 that it had discovered gas in a three-well 2015 drilling campaign in production sharing contract (PSC) SK408 offshore Sarawak in Malaysia. The Jerun-1 well, which is 3.1 miles north of the 2014 Bakong discovery, is a multi-Tcf discovery with an interpreted gross gas column of approximately 2,625 ft in the primary target reservoir. The Jeremin-1 well encountered a gross gas column of 341 ft, and the Putat-1 prospect was a dry hole. SapuraKencana is the exploration operator with a 40% working interest in the PSC. Petronas Carigali and Shell each hold 30% interests.

Woodside Petroleum has increased the company’s best estimate of contingent (2C) resources to 4.48 billion BOE, an increase of 83 million BOE, following two first-quarter discoveries offshore Myanmar. The company announced the discovery of 105 ft of net gas pay in the Block A-6 Shwe Yee Htun-1 exploration well—an increase of 56 ft from an earlier estimate—and 203 ft of net gas pay in the Block AD-7 Thalin-1A exploration well. Woodside’s early success in Myanmar establishes the petroleum system credentials of the Rakhine Basin, where the company is one of the largest acreage holders with interests in six blocks.

Santos has spudded the AAL-4X appraisal well in the Northwest Natuna Production Sharing Contract (PSC) offshore Indonesia. The company-operated well is being drilled in 236 ft of water to a planned maximum 4,042-ft true vertical depth from mean sea level. The well targets the G Sand reservoir, which is estimated to hold 36 million bbl of gross recoverable oil resources. Santos and AWE each have a 50% interest in the PSC.


Empire Oil & Gas reported encouraging test data from its solely owned Red Gully North-1 discovery well in permit EP 389 in Western Australia. Test results from the Cattamarra C and Upper D intervals yielded an estimate of 7.5 PJ (1.2 quadrillion BOE) of contingent gas resources, which are potentially recoverable but sub-commercial because of business and/or technological hurdles. Testing of the Lower D interval indicated a sandstone of very low permeability that is unable to flow commercial quantities of gas and condensate. The Cattamarra C and Upper D sands are being isolated from a high-water zone and retested.


InfraStrata has spudded the Woodburn Forest-1 well in County Antrim in Northern Ireland, the United Kingdom. With a planned well depth of 6,561 ft, the drilling targets three conventional sandstone intervals. P50 prospective resources targeted by the well are estimated at 25 million bbl of oil. After drilling, the well will be plugged and abandoned and the site will be restored to its former state. Should results be favorable, additional consent and plan approval will be needed for further activity such as testing. InfraStrata is the operator with a 20% interest in the well with seven other companies holding stakes of 9% to 16%.

Middle East

Circle Oil has produced oil from the AASE-24 well on the North West Gemsa field in Egypt. Drilled as part of the field’s 2016 infill campaign, AASE-24 recorded an average gross output rate of 1,714 B/D of oil and 3 MMcf/D of gas through a 40/64-in. choke. The rate is being lowered to protect the field’s long-term production capability, the company said. Circle has a 40% interest in the field, which is operated by NPIC, a subsidiary of Zhen Hua Oil (50%). The remaining stake is held by SDX Energy.

North America

EOG Resources’ Chairman and Chief Executive Officer Bill Thomas told investors on 6 May that the company has the ability to post strong returns with oil prices at approximately USD 40/bbl and would post triple-digit returns should prices spike to USD 60/bbl. The Houston-based company is considered one of the most efficient US drillers. EOG is also successfully boosting recovery from existing wells with relatively low new investment, particularly in south Texas’ Eagle Ford Shale. These projects “will get more efficient as we move forward, and lower cost,” Thomas said.

South America

LGO has started production from a new interval on well GY-671 in its solely owned Goudron field in Trinidad. A total of 208 ft of perforations were added to the well’s Upper C-sand reservoir following the isolation of the zone with a packer. The interval had never been completed in the various surrounding wells. After initial cleanup operations, the well flowed at rates of up to 240 B/D of oil before being choked back to a natural stabilized rate of 80 B/D. The additional production will complement a base field rate that averaged 403 B/D in March.