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Regional Update


Algeria awarded four of 31 oil and gas field blocks on offer to foreign consortiums in its first auction since 2011. Shell and Repsol won permits for the Boughezoul area in the north of the country, while Shell and Statoil won permits for the Timissit area in the east. A consortium of Enel and Dragon Oil was awarded permits for both the Tinrhert and the Msari Akabli areas.

Circle Oil’s CGD-12 well, located onshore Morocco in the Sebou permit, encountered natural gas at different levels within the Guebbas and Hoot sands. Wireline logging analysis confirmed a net 9.7 m of pay. The first test, over the Intra Hoot sands, flowed gas at a sustained rate of 2.21 MMscf/D through an 18/64‑in. choke. The primary target, the Main Hoot sands, flowed at a sustained rate of 4.62 MMscf/D through a 24/64-in. choke. The well was drilled to a total depth of 1232 m and will be completed for future production. Circle Oil (75%) is the operator, with partner ONHYM (25%), Morocco’s national oil company.


Three new oil discoveries were made by Cairn India on Block RJ-ON-90/1, in Rajasthan, India. Exploration well DP-1 encountered 70 m of gross oil-bearing pay in the Barmer Hill formation. The well was fractured and flowed crude at a rate of 120 B/D. Exploration well Saraswati SW-1 tested a Mesozoic sand interval, which flowed oil at a rate of 248 B/D. Well Aishwariya-46 flowed oil at 182 B/D from the Dharvi Dungar formation. Cairn (70%) is operator under a production-sharing agreement with partner Oil and Natural Gas Corporation (ONGC) (30%).

Lundin subsidiary Lundin Gurita spudded the Gobi-1 exploration well off the coast of Indonesia, in the Gurita production-sharing contract, using jack-up rig Hakuryu-11. Gobi-1 is a wildcat well designed to test the potential of Oligocene and Early Miocene stacked, fluvial sandstone reservoirs in a three-way, fault-dependent structure in the Jemaja basin. Lundin (90%) is operator, with partner Nido Petroleum (10%).

China National Offshore Oil Corporation (CNOOC) has started production from the Enping 24-2 oil field, which is located in the Pearl River Mouth basin in the South China Sea. The average water depth of the field ranges from 86 m to 96 m and main facilities include one drilling and production platform; a floating production, storage, and offloading vessel; and 17 producing wells. Currently there are two wells producing a total of approximately 8,000 BOPD. CNOOC holds 100% interest in the field and expects it to reach peak production of 40,000 BOPD by 2017.


Senex Energy’s Martlet-1 exploration well—located in PEL 104/111, on the western flank of the South Australian Cooper-Eromanga basin—encountered oil in the Namur sandstone reservoir at 1454 m. Subsequent evaluation logs indicate net oil pay of 6 m. The well was drilled by EDA Rig 3 to evaluate the potential of the Namur sandstone within an interpreted four-way, dip-closed structure. It reached a total depth of 2096 m and is being suspended and cased. Martlet-1 is expected to be placed on production in the fourth quarter of 2014. Senex (60%) is operator, with partner Beach Energy (40%).


Drilling has commenced, using rig Marriott 50, at the Horse Hill-1 well in PEDL 137, on the northern side of the UK’s Weald basin in West Sussex. Planned depth is 8,680 ft; primary targets include the Jurassic Portland and Corallian sandstones. The Great Oolite limestone is a secondary target. After penetrating Jurassic intervals, the well will be drilled to total depth to test for Triassic-aged formations for natural gas. Horse Hill‑1 is operated by special-purpose company Horse Hill Developments (65%), along with partner Magellan Oil (35%).

Drilling has commenced on San Leon Energy’s Kęty exploration well—the first in a three-well drilling program in the Karpaty area of Poland’s Permian basin. Kęty’s primary target is natural gas in a Miocene sandstone interval. San Leon (60%) is operator, with Poland’s state exploration and production company, PGNiG (40%).


The Chiya Chere-8 well (CK-8)—which lies in the Atrush Block, in Iraq’s Kurdistan region—has reached a total depth of 2195 m. The well encountered the top of a Jurassic reservoir 90 m structurally higher than the block’s AT-1 discovery well. CK-8 is the last of four production wells to be predrilled for phase I of the block’s development, and it will be tested in 2015 prior to completion and tie-in to a production facility. The block is operated by TAQA Atrush (39.9%), a subsidiary of Abu Dhabi National Oil Company, and ShaMaran Ventures (20.1%), a wholly owned subsidiary of ShaMaran Petroleum. The remaining interest is held by Kurdistan’s Regional Government (25%) and Marathon Oil (15%).


Chevron USA’s Keathley Canyon Block 10 Well No. 1 encountered oil pay in the Lower Tertiary Wilcox sands on the Guadalupe prospect, approximately 180 miles offshore Louisiana, in the Gulf of Mexico. The well was drilled in 3,992 ft of water and reached a total depth of 30,137 ft. Chevron is operator (42.5%), with partners BP Exploration and Production (42.5%) and Venari Resources (15%).


Petrobras encountered gas while drilling an extension well on concession BM-SEAL-4 to test the potential of the Poco Verde area of the ultradeepwater Sergipe-Alagoas basin, offshore Brazil. The well, which lies 58 km off Aracaju, Brazil, was drilled in 2196 m of water. According to Petrobras, the reservoir has good porosity characteristics. Petrobras (75%) is operator with partner ONGC (25%).

Eni’s Oglan-2 exploration well, located in Block 10, approximately 260 km southeast of Quito, Ecuador, has encountered oil. It was drilled to 6,450 ft and intersected a net 236-ft oil column containing 16°API crude. During a production test, constrained by surface facilities, the well flowed oil at 1,100 B/D. Eni holds 100% operated interest in the block.