ExxonMobil, Statoil to Begin Developing Julia Oil Field in Gulf of Mexico

Exxon Mobil Corp. and Statoil ASA have agreed to begin jointly developing the Julia oil field, estimated to hold nearly six billion barrels of resources, in the Gulf of Mexico.

The companies each own a 50% stake in the field, located about 200 miles south of New Orleans, La., and which is expected to take about three years to develop.

Exxon said capital cost for the project, which is expected to begin oil production in 2016, is estimated to be more than $4 billion.

The field will initially produce 34,000 barrels of oil a day and includes six wells with subsea tie-backs to the Jack & St. Malo production facility operated by Chevron U.S.A. Inc.

Two weeks ago, Exxon reported its first-quarter profit rose slightly compared with last year but its production of oil and natural gas fell for the seventh consecutive quarter on a year-over-year basis.

Shares of Exxon slid seven cents to $91.08 in after-hours trading. The stock is up 7.9% over the past 12 months.

Last week, Norwegian oil and gas company Statoil posted 58% lower first-quarter net profit on the year, missing expectations amid lower production volumes and lower prices.

Copyright (c) 2013 Dow Jones & Company, Inc.

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San Leon to Begin Czaslaw-1 Stimulation, Test

San Leon Energy announced that its planned stimulation and test of the Czaslaw-1 well on the Company's Nowa Sol Concession in the Permian Basin of Poland will begin April 22 with the mobilization of coiled tubing, nitrogen lift equipment, and surface test equipment from Vechta, Germany. Recent measurements of the well have shown that the well is building pressure. After taking samples of the fluid in the wellbore the Company has recovered natural gas (including C1-C8) and light oil. Schlumberger has been contracted to complete this phase of the project. 

The Company estimates the following timeline:

April 25 - acid wash and clean out of the wellApril 26-30 - acid squeeze into the Main Dolomite reservoir; after soaking lift fluids in the well bore using nitrogen, followed by 3 day flow test up to 400 bbls of oilMay 1 - shut-in the well for 5 day build-up with downhole gaugesMay 6 - decision on a long term test and oil production, based upon results of the acid stimulation and test

The Czaslaw SL-1 well reached a total depth of 5,112 feet (1,558 meters) measured depth (4,032 feet or 1,229 meters TVD). The well penetrated 141 feet (43 meters) of the targeted Permian Main Dolomite reservoir. Petrophysical analysis shows moderate fracturing of the Main Dolomite within an estimated 95 feet (29 meters) of naturally fractured reservoir. Live oil shows were present on 90 percent of the core plug and detailed petrophysical and core analysis indicates moveable light oil in the Main Dolomite reservoir. The entire Main Dolomite interval shows high fluorescence suggesting both moveable and residual oil. Integrated petrophysical and rock-mechanical analyses suggest the well is a good candidate for artificial stimulation to enhance the natural fractures in the reservoir. There were no indications of water encountered during drilling. The well is the first well on the Czaslaw structure, with room for additional vertical and/or horizontal wells. Several similar structures have been identified in the Company's Nowa Sol 3D seismic survey which covers less than 15 percent of the Nowa Sol Concession area.

Executive Chairman, Oisin Fanning commented:

"The recent recovery of hydrocarbons and build-up of pressure in the Czaslaw-1 well is very exciting. We have been studying the Main Dolomite extensively over the past months with experts both in Europe and North America. We are now ready to stimulate and test the well and with success immediately move to production. There is a huge amount of oil in place in the Main Dolomite and we are committed to unlocking both the conventional and unconventional potential of the petroleum system."

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San Leon to Begin Czaslaw-1 Stimulation, Test

San Leon Energy announced that its planned stimulation and test of the Czaslaw-1 well on the Company's Nowa Sol Concession in the Permian Basin of Poland will begin April 22 with the mobilization of coiled tubing, nitrogen lift equipment, and surface test equipment from Vechta, Germany. Recent measurements of the well have shown that the well is building pressure. After taking samples of the fluid in the wellbore the Company has recovered natural gas (including C1-C8) and light oil. Schlumberger has been contracted to complete this phase of the project. 

The Company estimates the following timeline:

April 25 - acid wash and clean out of the wellApril 26-30 - acid squeeze into the Main Dolomite reservoir; after soaking lift fluids in the well bore using nitrogen, followed by 3 day flow test up to 400 bbls of oilMay 1 - shut-in the well for 5 day build-up with downhole gaugesMay 6 - decision on a long term test and oil production, based upon results of the acid stimulation and test

The Czaslaw SL-1 well reached a total depth of 5,112 feet (1,558 meters) measured depth (4,032 feet or 1,229 meters TVD). The well penetrated 141 feet (43 meters) of the targeted Permian Main Dolomite reservoir. Petrophysical analysis shows moderate fracturing of the Main Dolomite within an estimated 95 feet (29 meters) of naturally fractured reservoir. Live oil shows were present on 90 percent of the core plug and detailed petrophysical and core analysis indicates moveable light oil in the Main Dolomite reservoir. The entire Main Dolomite interval shows high fluorescence suggesting both moveable and residual oil. Integrated petrophysical and rock-mechanical analyses suggest the well is a good candidate for artificial stimulation to enhance the natural fractures in the reservoir. There were no indications of water encountered during drilling. The well is the first well on the Czaslaw structure, with room for additional vertical and/or horizontal wells. Several similar structures have been identified in the Company's Nowa Sol 3D seismic survey which covers less than 15 percent of the Nowa Sol Concession area.

Executive Chairman, Oisin Fanning commented:

"The recent recovery of hydrocarbons and build-up of pressure in the Czaslaw-1 well is very exciting. We have been studying the Main Dolomite extensively over the past months with experts both in Europe and North America. We are now ready to stimulate and test the well and with success immediately move to production. There is a huge amount of oil in place in the Main Dolomite and we are committed to unlocking both the conventional and unconventional potential of the petroleum system."

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Repsol, Alliance Oil Begin Gas Production from SK Field

Repsol reported Thursday that it and its partner Alliance Oil have begun commercial gas production from the Syskonsyninskoye (SK) field in the Khanty-Mansiysk region of Russia. The firm said that the production start-up marks the first success of the A&R Oil and Gas (AROG) joint venture that the two companies established to explore and produce for hydrocarbons in Russia.

Repsol stated that initial gas production amounted to 5,350 barrels of oil equivalent per day (boepd) and that the gas is being delivered to the Gazprom transportation network. To date, five production wells have been drilled and three of these have been put into operation.

The company expects six more wells to be drilled on five locations by early 2014 as the joint venture further develops the field during the coming year.

AROG's total output now stands at 25,000 boepd, while its proven and probable reserves amount to 218 million barrels of oil equivalent.

"The first successful start-up through AROG is especially satisfying for us as we contribute to unlock the great potential of an area which will continue to supply large volumes of gas to the domestic market in coming years," commented Fernando Martinez Fresneda, the general manager for Repsol Russia, in a company statement.

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Repsol, Alliance Oil Begin Gas Production from SK Field

Repsol reported Thursday that it and its partner Alliance Oil have begun commercial gas production from the Syskonsyninskoye (SK) field in the Khanty-Mansiysk region of Russia. The firm said that the production start-up marks the first success of the A&R Oil and Gas (AROG) joint venture that the two companies established to explore and produce for hydrocarbons in Russia.

Repsol stated that initial gas production amounted to 5,350 barrels of oil equivalent per day (boepd) and that the gas is being delivered to the Gazprom transportation network. To date, five production wells have been drilled and three of these have been put into operation.

The company expects six more wells to be drilled on five locations by early 2014 as the joint venture further develops the field during the coming year.

AROG's total output now stands at 25,000 boepd, while its proven and probable reserves amount to 218 million barrels of oil equivalent.

"The first successful start-up through AROG is especially satisfying for us as we contribute to unlock the great potential of an area which will continue to supply large volumes of gas to the domestic market in coming years," commented Fernando Martinez Fresneda, the general manager for Repsol Russia, in a company statement.

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