Ruspetro Reports Progress with Appraisal Drilling

West Siberia-focused Ruspetro reported Wednesday that it has made progress with appraisal drilling at its field in the Khanty-Mansiysk region.

Ruspetro said that preparations – including pipelines, power, road and bridge access – had been completed at the Pad 4 area in the gas/condensate part of the field and that drilling had commenced. The company will use drilling here to continue its appraisal and characterization of the gas/condensate formations.

Meanwhile, rig build-up preparations are ongoing at the Pad 23 area, which is located in the crude oil-producing western part of the field, and two further wells are to be converted into water injectors in the Pad 21 area during the third quarter of 2013.

Ruspetro said that its average production rate for the first quarter of the year was 5,986 barrels of oil per day. During April, this production rate fell to 5,452 bopd.

Ruspetro Chief Executive Don Wolcott commented in a statement:

"In line with the plan laid out at our Strategic Review Presentation of 12 April, we are pleased with the progress made in our appraisal drilling program. Pad 4 has now been completed, with infrastructure in place and drilling commenced. Appraisal drilling from Pad 4 will enable us to further delineate the gas and condensate reservoir in the North.

"Drilling from Pad 23 will delineate the productive sands going west from the prolific crude oil producing Pad 21 area. Our discussions with Sberbank are progressing and we are confident that they will be completed in the first half of 2013."

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Investigation Underway Into Utah Drilling Site

The Occupational Safety and Health Administration, the Uintah County Fire Department and the Uintah County Sheriff's Department are investigating an explosion that occurred Tuesday evening at a Newfield Exploration Co. site in Uintah County, Utah, a county official told Rigzone.

A contractor working for Newfield, Tyson Lee Boren, was killed. Another worker was injured and treated at a local hospital, John Laursen, chief deputy for Uintah County.

A grinder found at the scene is suspected to be behind the explosion, Laursen said. The incident occurred when a 400-barrel tank at the site had started to leak. When workers went to fix the tank, someone accidentally hit it with a grinder, causing the production water to explode.

The site of the incident is located 15 miles south of Myton, Utah and 65 miles from the Uintah County seat of Vernal.

Newfield is also conducting its own investigation into the matter, according to media reports.

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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Investigation Underway Into Utah Drilling Site

The Occupational Safety and Health Administration, the Uintah County Fire Department and the Uintah County Sheriff's Department are investigating an explosion that occurred Tuesday evening at a Newfield Exploration Co. site in Uintah County, Utah, a county official told Rigzone.

A contractor working for Newfield, Tyson Lee Boren, was killed. Another worker was injured and treated at a local hospital, John Laursen, chief deputy for Uintah County.

A grinder found at the scene is suspected to be behind the explosion, Laursen said. The incident occurred when a 400-barrel tank at the site had started to leak. When workers went to fix the tank, someone accidentally hit it with a grinder, causing the production water to explode.

The site of the incident is located 15 miles south of Myton, Utah and 65 miles from the Uintah County seat of Vernal.

Newfield is also conducting its own investigation into the matter, according to media reports.

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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Drilling Report, May 12

Click HERE to read a PDF of the May 12, 2013 Tyler Courier-Times--Telegraph Drilling Report

The drilling report was produced with data from the Texas Railroad Commission, from April 28 to May 4. The following counties were searched: Anderson, Angelina, Camp, Cass, Cherokee, Dallas, Ellis, Freestone, Gregg, Harrison, Henderson, Houston, Kaufman, Leon, Limestone, Marion, Nacogdoches, Navarro, Panola, Rains, Robertson, Rusk, San Augustine, Shelby, Smith, Upshur, Van Zandt and Wood. For information aboutthe drilling report contact Business Editor Casey Murphy at cmurphy@tylerpaper.com or 903-596-6289.

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Investigation Underway Into Utah Drilling Site

The Occupational Safety and Health Administration, the Uintah County Fire Department and the Uintah County Sheriff's Department are investigating an explosion that occurred Tuesday evening at a Newfield Exploration Co. site in Uintah County, Utah, a county official told Rigzone.

A contractor working for Newfield, Tyson Lee Boren, was killed. Another worker was injured and treated at a local hospital, John Laursen, chief deputy for Uintah County.

A grinder found at the scene is suspected to be behind the explosion, Laursen said. The incident occurred when a 400-barrel tank at the site had started to leak. When workers went to fix the tank, someone accidentally hit it with a grinder, causing the production water to explode.

The site of the incident is located 15 miles south of Myton, Utah and 65 miles from the Uintah County seat of Vernal.

Newfield is also conducting its own investigation into the matter, according to media reports.

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

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GE Expands Technology Portfolio to Address Offshore Drilling Challenges

GE continues to expand its technology portfolio to address the challenges of offshore drilling and production and the rigors of deepwater drilling. Several GE business units are showcasing their latest products and services for the offshore sector in Booth 3163 at the 2013 Offshore Technology Conference (OTC), which is expected to draw nearly 90,000 attendees.

"With one of the industry's most comprehensive portfolios of advanced technology solutions and services, GE Oil & Gas is helping to solve complex challenges all around the world," said Dan Heintzelman, president and CEO of GE Oil & Gas. "GE's global scale and deep R&D experience, combined with cross-business technology sharing and innovations from our recent acquisitions uniquely position us to help our customers be more efficient, productive and competitive."

At the conference, GE Oil & Gas introduced the next-generation SeaONYX BOP surface control system and operator interface. The new system is designed to control a deepwater blowout preventer, which is used to rapidly seal an oil well in an emergency. The technology incorporates for the first time GE's Mark Vle hardware and Proficy software tools—the same proven control systems that have been deployed in a wide range of GE power generation applications worldwide, such as on GE's advanced fleet of wind and gas turbines.

GE Oil & Gas also announced the first application of its latest SeaSmart Offshore Package turbine solution with Statoil. It's designed to power offshore oil rigs but with a substantially smaller footprint and reduced weight, which can be critically important when space is at a premium on an offshore platform. When compared to the package launched in 2009, the new technology reduces the total footprint by 24 percent. The total weight drops by 22 percent, driven in part by the use of new GE composite materials.

Other new technologies from GE Oil & Gas at OTC include:

Driving efficiency in the unconventional gas sector: On a drilling site, a manifold lets an operator control flows, acting much like a switchboard. GE's new skid-mounted modular frac manifolds are designed to safely allow simultaneous drilling operations on multiple well pads. The modular design enables fast installation and allows units to be shipped to and from well sites with GE crane trucks—which reduces freight costs by eliminating the need for "wide load" permitting,

Listening for leaks under the sea: GE Oil & Gas' Measurement & Control business is highlighting two innovative remote monitoring and sensing solutions for the subsea sector. The Acoustic Leak Detection System uses passive, acoustic hydrophone technology to detect and locate subsea oil and gas leaks by discriminating the noise of a leak from other sources of sound. The new Subsea Multi-Domain Condition Monitoring combines specially designed electric emission monitoring and acoustic hydrophones to monitor the operating condition of subsea machinery and processes.

Award winning deepwater technologies: The organizers of OTC have given two "Spotlight on New Technology" awards to GE Oil & Gas. The RamTel Plus system and Remotely Operated Vehicle Subsea Display Panel won for providing real-time, electronic measurements of the position of a blowout preventer's ram, which closes a well, and the pressure required to operate the sealing elements. The Deepwater BOP Blind Shear Ram won for its next-generation technology that is able to slice through today's larger diameter well pipes and casings—which also are stronger due to advanced metallurgy—and seal a well in an emergency.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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Drilling Report, May 5

Click HERE to read a PDF of the May 5 Tyler Morning Telegraph Drilling Report

The drilling report was produced with data from the Texas Railroad Commission, from April 21 to April 27. The following counties were searched: Anderson, Angelina, Camp, Cass, Cherokee, Dallas, Ellis, Freestone, Gregg, Harrison, Henderson, Houston, Kaufman, Leon, Limestone, Marion, Nacogdoches, Navarro, Panola, Rains, Robertson, Rusk, San Augustine, Shelby, Smith, Upshur, Van Zandt and Wood. For information aboutthe drilling report contact Business Editor Casey Murphy at cmurphy@tylerpaper.com or 903-596-6289.

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GE Awarded for New Technology Addressing Deepwater Drilling Challenges

GE Oil & Gas has received Spotlight on New Technology awards from the 2013 Offshore Technology Conference (OTC) for two new products that address the challenges of deepwater drilling. The awards showcase the latest and most advanced hardware and software technologies that are leading the offshore exploration and drilling industry into the future.

The two GE products honored are:

RamTel Plus System and ROV Subsea Display Panel. Blowout preventers (BOP) are critical components to drilling operation safety and are used on all wells, both on and offshore. GE's RamTel Plus System and Remotely Operated Vehicle (ROV) Display provide the industry with real-time, electronic measurements of the BOP's ram position and the pressure required to actuate the blades and/or sealing elements. This proven technology provides new data on the operational performance of the BOP that can be used in trending and prognostics in a way that mechanical systems cannot provide.

Deepwater BOP Blind Shear Ram. GE Oil & Gas has developed next-generation technology for shearing and sealing wellbore tubulars (casings and pipes). The patent-pending 5K Blind Shear Ram is designed for use in GE's ram BOPs for offshore drilling and has demonstrated the capability to shear 6-5/8 inch S-135 drill pipe tool joints while achieving a wellbore seal at 15,000 psi pressure differential. The technology was developed by GE to address an industry need to shear and seal today's large diameter, advanced metallurgy (strength, thickness and ductility) drilling tubulars.

"We are very honored to be recognized by the OTC for our development of these two new products," said Chuck Chauviere, president of Drilling for GE Oil & Gas. "They are among the latest examples of how GE continues to seek and develop innovative solutions for the challenges faced in today's complex drilling programs."

In total, OTC presented 15 Spotlight on New Technology awards to exhibitors at this year's show. GE Oil & Gas was one of only two companies to receive two awards.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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GE Awarded for New Technology Addressing Deepwater Drilling Challenges

GE Oil & Gas has received Spotlight on New Technology awards from the 2013 Offshore Technology Conference (OTC) for two new products that address the challenges of deepwater drilling. The awards showcase the latest and most advanced hardware and software technologies that are leading the offshore exploration and drilling industry into the future.

The two GE products honored are:

RamTel Plus System and ROV Subsea Display Panel. Blowout preventers (BOP) are critical components to drilling operation safety and are used on all wells, both on and offshore. GE's RamTel Plus System and Remotely Operated Vehicle (ROV) Display provide the industry with real-time, electronic measurements of the BOP's ram position and the pressure required to actuate the blades and/or sealing elements. This proven technology provides new data on the operational performance of the BOP that can be used in trending and prognostics in a way that mechanical systems cannot provide.

Deepwater BOP Blind Shear Ram. GE Oil & Gas has developed next-generation technology for shearing and sealing wellbore tubulars (casings and pipes). The patent-pending 5K Blind Shear Ram is designed for use in GE's ram BOPs for offshore drilling and has demonstrated the capability to shear 6-5/8 inch S-135 drill pipe tool joints while achieving a wellbore seal at 15,000 psi pressure differential. The technology was developed by GE to address an industry need to shear and seal today's large diameter, advanced metallurgy (strength, thickness and ductility) drilling tubulars.

"We are very honored to be recognized by the OTC for our development of these two new products," said Chuck Chauviere, president of Drilling for GE Oil & Gas. "They are among the latest examples of how GE continues to seek and develop innovative solutions for the challenges faced in today's complex drilling programs."

In total, OTC presented 15 Spotlight on New Technology awards to exhibitors at this year's show. GE Oil & Gas was one of only two companies to receive two awards.

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Sete Brasil Remains in Talks with OSX to Build Two Drilling Rigs

RIO DE JANEIRO--Sete Brasil said late Friday that shipbuilder OSX Brasil S/A (OSXB3.BR), part of billionaire entrepreneur Eike Batista's industrial empire, remains in the hunt to build two drilling rigs for the company.

Sete Brasil, a holding company that is building 28 high-tech drill rigs for state-run energy giant Petroleo Brasileiro (PBR, PETR4.BR), said it still wants to add two more rigs to its portfolio. Sete Brasil was created in 2011 by several Brazilian pension funds and banks, with Petrobras also holding a 10% stake.

"The priority in this negotiation continues to be OSX," Sete Brasil said.

Earlier Friday, a local press report indicated that Sete Brasil had dropped out of talks with OSX. OSX, which is building a shipyard at the Acu port in northeastern Rio de Janeiro state, has been in talks with Sete Brasil since mid-2012. The two rigs Sete Brasil wants to add to its fleet would be rented out on the spot market, a spokeswoman for the company said.

OSX declined to comment about talks with Sete Brasil.

"The company is attentive to new business opportunities with an outlook toward expanding its client list and portfolio of deliveries," OSX said. OSX currently has contracts to build vessels for sister-company OGX (OGXP3.BR), Petrobras, Sapura and Kingfish.

OSX shares closed down 5.8% at BRL2.76 in trading on the Sao Paulo Stock Exchange.

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

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Rialto Energy, Vantage Drilling Agree to $12.4M Settlement

Rialto Energy Ltd. and Vantage Drilling Company have settled an agreement regarding payment terms in regards to the early termination of the rig contract regarding Vantage's Sapphire Driller (375' ILC) jackup.

Rialto has agreed to pay Vantage an amount equivalent to 75 days of the operating rate, about $12.38 million. The original contract had specified a rate of $17.33 million for 105 days.

The company had contracted the rig until December 2013 to explore Block CI-202.

In April 2013, Rialto and Vitol E&P entered into a contract to jointly develop Rialto's interests in Cote d'Ivoire and Ghana. Vitol acquired, subject to regulatory and joint venture partner approval, a 20 percent stake in Rialto Energy (Ghana) Limited in exchange for funds to cover Rialto's $7.7 million obligation to drill the high-impact Starfish-1 exploration well in the Accra Block, Ghana – which is due to spud in June 2013.

Additionally, Vitol will acquire 65 percent of the shares in Rialto Energy (Cote d'Ivoire) Limited in exchange for providing $50 million of capital to be invested in a to-be-agreed Block CI-202 work program. The deal also called for the release of the Sapphire drilling rig, according to an April 23 press release.

"Whilst we are disappointed to have had to make the difficult decision to terminate the rig contract, it was made to ensure that Rialto and Vitol had sufficient time to finalize matters around our recently announced deal and to work together on a robust technical program in Block CI-202," Rialto's Managing Director Rob Shepherd said in a press release. "We are continuing to work with Vitol on finalizing the transaction and are doing everything possible to bring this to a swift conclusion."

With more than 10 years of journalism experience, Robin Dupre specializes in the offshore sector of the oil and gas industry. Email Robin at rdupre@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
For More Information on the Offshore Rig Fleet:
RigLogix can provide the information that you need about the offshore rig fleet, whether you need utilization and industry trends or detailed reports on future rig contracts. Subscribing to RigLogix will allow you to access dozens of prebuilt reports and build your own custom reports using hundreds of available data columns. For more information about a RigLogix subscription, visit http://www.riglogix.com/.

View the original article here

Rialto Energy, Vantage Drilling Agree to $12.4M Settlement

Rialto Energy Ltd. and Vantage Drilling Company have settled an agreement regarding payment terms in regards to the early termination of the rig contract regarding Vantage's Sapphire Driller (375' ILC) jackup.

Rialto has agreed to pay Vantage an amount equivalent to 75 days of the operating rate, about $12.38 million. The original contract had specified a rate of $17.33 million for 105 days.

The company had contracted the rig until December 2013 to explore Block CI-202.

In April 2013, Rialto and Vitol E&P entered into a contract to jointly develop Rialto's interests in Cote d'Ivoire and Ghana. Vitol acquired, subject to regulatory and joint venture partner approval, a 20 percent stake in Rialto Energy (Ghana) Limited in exchange for funds to cover Rialto's $7.7 million obligation to drill the high-impact Starfish-1 exploration well in the Accra Block, Ghana – which is due to spud in June 2013.

Additionally, Vitol will acquire 65 percent of the shares in Rialto Energy (Cote d'Ivoire) Limited in exchange for providing $50 million of capital to be invested in a to-be-agreed Block CI-202 work program. The deal also called for the release of the Sapphire drilling rig, according to an April 23 press release.

"Whilst we are disappointed to have had to make the difficult decision to terminate the rig contract, it was made to ensure that Rialto and Vitol had sufficient time to finalize matters around our recently announced deal and to work together on a robust technical program in Block CI-202," Rialto's Managing Director Rob Shepherd said in a press release. "We are continuing to work with Vitol on finalizing the transaction and are doing everything possible to bring this to a swift conclusion."

With more than 10 years of journalism experience, Robin Dupre specializes in the offshore sector of the oil and gas industry. Email Robin at rdupre@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
For More Information on the Offshore Rig Fleet:
RigLogix can provide the information that you need about the offshore rig fleet, whether you need utilization and industry trends or detailed reports on future rig contracts. Subscribing to RigLogix will allow you to access dozens of prebuilt reports and build your own custom reports using hundreds of available data columns. For more information about a RigLogix subscription, visit http://www.riglogix.com/.

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ConocoPhillips: No New Timeline for Arctic Drilling Program

ConocoPhillips executives didn't give a new timeline for the company's Arctic drilling program during a conference call Thursday, after the company said earlier this month it wouldn't go forward this summer as it had planned.

Chief Financial Officer Jeff Sheets said the company will need more time to understand the regulatory framework before beginning work in the Chukchi Sea, off the coast of Alaska. He said drilling in 2015 is possible but not a sure thing.

The company didn't feel confident enough that it would be able to get the permits it needed to proceed with commitments for rigs and equipment, said Matt Fox, executive vice president for exploration and production.

"We just felt there wasn't enough stability in way the regulatory framework was shaping up for us to do that with confidence," Mr. Fox said.

ConocoPhillips will have to pay an $18 million cancellation fee to Noble Corp. to get out of its contract for a new jackup rig equipped to work in the Arctic, Noble said in a fleet update earlier this month.

The company didn't provide a timeline for a long-discussed sale of an interest in its Canadian oil-sands assets. Mr. Fox said there has been a lot of interest, but the company is still considering all its options. Mr. Sheets said it isn't likely a transaction will be completed this year.

A recent rise in natural gas prices isn't enough for ConocoPhillips to consider redirecting work toward drilling for natural gas rather than oil, the executives said. For that to happen, he said prices need to be "significantly north" of where they are now, and need to stay that way.

Planned turnarounds will have a significant impact on the company's production worldwide this year.

"This really is a big year for planned shutdowns," Mr. Fox said.

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

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Deepwater Gulf of Mexico Drilling Activity to Keep Rising

Drilling activity in the deepwater U.S. Gulf of Mexico continues its recovery, according to data from Rigzone's database RigLogix.

As of April 23, 37 semisubmersibles and drillships are under contract in the deepwater Gulf of Mexico, according to RigLogix. Shell has seven deepwater rigs under contract – currently the highest number of rigs for an operator in the Gulf of Mexico. BP has the second largest number of deepwater rigs under contract with six, followed by Chevron with five, and Anadarko with four.  

Other operators currently active in the U.S. Gulf include Petrobras, BHP Billiton Plc, Eni S.p.A., LLOG Exploration and Hess. , which have two deepwater rigs each under contract.  Walter Oil & Gas, Noble Energy, ExxonMobil Corp., Cobalt International Energy and Apache Corp. each have one deepwater rig under contract in the region.

The number of deepwater semisubmersibles and drillships working in the U.S. Gulf of Mexico could rise to 52 in June 2014 and 54 in December 2014 if all of the deepwater rigs currently under contract remain so  according to data from Rigzone's RigLogix database.

Operators with rigs under firm contract in the U.S. Gulf in December 2014 will include BP plc, which will have six rigs, the most from any operator. Royal Dutch Shell plc will have five rigs under firm contract during that time. Anadarko Petroleum Corp. is expected to have four rigs working, followed by Chevron Corp. and LLOG Exploration Co. LLC, with three rigs each under firm contract.

Exxon Mobil Corp., Petroleo Brasiliero S.A. (Petrobras), Plains Exploration & Production Company, and Statoil ASA each are expected to have two rigs under contract in the Gulf of Mexico in December 2014.  At that time, BHP Billiton Ltd., Eni S.p.A, and Murphy Oil Corp. will each have one rig under firm contract.

Eight of these units have unexercised options, while 13 units do not have any future contracts. If these options are exercised and 13 units without contracts receive awards, the number of rigs under contract will reach 54, according to RigLogix.

Since the beginning of the year, 10 new contracts have been awarded, plus two options exercised, for a total of 12 contracts. Of those 10 contracts, two were sublet contracts.

Optimism over the Gulf of Mexico's exploration and production outlook continues to grow as drilling activity and bidding activity resumes following the post-Macondo moratorium imposed by the Obama administration. Earlier this month, Parks Paton Hoepfl & Brown Managing Director G. Allen Brooks noted that the results of Central Gulf of Mexico Lease Sale 227 suggest the oil and gas industry is bullish on prospects in the region.

Shell, Anadarko, Noble, ExxonMobil, BHP and Murphy Oil Corp. have drilled successful appraisal wells since the beginning of 2011. Statoil, Chevron, Noble, LLOG, Cobalt and Anadarko have also drilled successful exploration wells during that time.

Last month, Chevron reported making a deepwater U.S. Gulf oil discovery at the Coronado prospect. In November 2012, Noble reported it had made a discovery in the Big Bend exploration area of the deepwater Gulf. 

Challenging conditions of the Lower Tertiary, including deep well depths, high pressure, high temperature conditions, and dense sub-surface salt have raised questions over the potential and timing for exploration success in this frontier Gulf play. Barclays analyst James C. West said in an April 23 research note.

The Coronado, Shenandoah and other Lower Tertiary discoveries have helped confirm the potential and drive further operator interest in the Lower Tertiary play in the deepwater Gulf, West added.

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
For More Information on the Offshore Rig Fleet:
RigLogix can provide the information that you need about the offshore rig fleet, whether you need utilization and industry trends or detailed reports on future rig contracts. Subscribing to RigLogix will allow you to access dozens of prebuilt reports and build your own custom reports using hundreds of available data columns. For more information about a RigLogix subscription, visit http://www.riglogix.com/.

View the original article here

Deepwater Gulf of Mexico Drilling Activity to Keep Rising

Drilling activity in the deepwater U.S. Gulf of Mexico continues its recovery, according to data from Rigzone's database RigLogix.

As of April 23, 37 semisubmersibles and drillships are under contract in the deepwater Gulf of Mexico, according to RigLogix. Shell has seven deepwater rigs under contract – currently the highest number of rigs for an operator in the Gulf of Mexico. BP has the second largest number of deepwater rigs under contract with six, followed by Chevron with five, and Anadarko with four.  

Other operators currently active in the U.S. Gulf include Petrobras, BHP Billiton Plc, Eni S.p.A., LLOG Exploration and Hess. , which have two deepwater rigs each under contract.  Walter Oil & Gas, Noble Energy, ExxonMobil Corp., Cobalt International Energy and Apache Corp. each have one deepwater rig under contract in the region.

The number of deepwater semisubmersibles and drillships working in the U.S. Gulf of Mexico could rise to 52 in June 2014 and 54 in December 2014 if all of the deepwater rigs currently under contract remain so  according to data from Rigzone's RigLogix database.

Operators with rigs under firm contract in the U.S. Gulf in December 2014 will include BP plc, which will have six rigs, the most from any operator. Royal Dutch Shell plc will have five rigs under firm contract during that time. Anadarko Petroleum Corp. is expected to have four rigs working, followed by Chevron Corp. and LLOG Exploration Co. LLC, with three rigs each under firm contract.

Exxon Mobil Corp., Petroleo Brasiliero S.A. (Petrobras), Plains Exploration & Production Company, and Statoil ASA each are expected to have two rigs under contract in the Gulf of Mexico in December 2014.  At that time, BHP Billiton Ltd., Eni S.p.A, and Murphy Oil Corp. will each have one rig under firm contract.

Eight of these units have unexercised options, while 13 units do not have any future contracts. If these options are exercised and 13 units without contracts receive awards, the number of rigs under contract will reach 54, according to RigLogix.

Since the beginning of the year, 10 new contracts have been awarded, plus two options exercised, for a total of 12 contracts. Of those 10 contracts, two were sublet contracts.

Optimism over the Gulf of Mexico's exploration and production outlook continues to grow as drilling activity and bidding activity resumes following the post-Macondo moratorium imposed by the Obama administration. Earlier this month, Parks Paton Hoepfl & Brown Managing Director G. Allen Brooks noted that the results of Central Gulf of Mexico Lease Sale 227 suggest the oil and gas industry is bullish on prospects in the region.

Shell, Anadarko, Noble, ExxonMobil, BHP and Murphy Oil Corp. have drilled successful appraisal wells since the beginning of 2011. Statoil, Chevron, Noble, LLOG, Cobalt and Anadarko have also drilled successful exploration wells during that time.

Last month, Chevron reported making a deepwater U.S. Gulf oil discovery at the Coronado prospect. In November 2012, Noble reported it had made a discovery in the Big Bend exploration area of the deepwater Gulf. 

Challenging conditions of the Lower Tertiary, including deep well depths, high pressure, high temperature conditions, and dense sub-surface salt have raised questions over the potential and timing for exploration success in this frontier Gulf play. Barclays analyst James C. West said in an April 23 research note.

The Coronado, Shenandoah and other Lower Tertiary discoveries have helped confirm the potential and drive further operator interest in the Lower Tertiary play in the deepwater Gulf, West added.

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
For More Information on the Offshore Rig Fleet:
RigLogix can provide the information that you need about the offshore rig fleet, whether you need utilization and industry trends or detailed reports on future rig contracts. Subscribing to RigLogix will allow you to access dozens of prebuilt reports and build your own custom reports using hundreds of available data columns. For more information about a RigLogix subscription, visit http://www.riglogix.com/.

View the original article here

Tag Oil Commences Drilling Ngapaeruru Well in New Zealand

Tag Oil Ltd. spud an exploration well in its 100-percent owned Petroleum Exploration Permit 38349 in the East Coast Basin of New Zealand. The Ngapaeruru-1 exploration well is targeting the Waipawa black shale and Whangai source rock formations at a depth of 5,906 feet. The well is designed to test the unconventional discovery potential in this portion of the basin.

"Our strategy has always been to build reserves, production infrastructure, and cash flow from our lower risk conventional assets, leveraging these successes to intelligently pursue high-impact opportunities such as the East Coast Basin," said Garth Johnson, Tag Oil's CEO, in a released statement.

"With TAG's continued success in the Taranaki Basin - and our successful commercialization of these discoveries - we continue to deliver on the first part of this plan. Drilling Ngapaeruru-1 is another step in delivering on our business plan: pursuing higher risk, higher impact exploration wells from a very strong financial position."

Tag Oil has conducted extensive geotechnical work on the company's East Coast acreage, including proprietary 2D and 3D seismic that have confirmed that the source rock parameters in the play compare favorably to commercial unconventional plays throughout the world. The company said  528 million proven Taranaki oil reserves and6.9 trillion cubic feet of proven gas reserves have been discovered to date.

The company is using Webster Drilling's Nova No. 1 drilling rig which was mobilized from the company's Sidewinder oil and gas field in the Taranaki Basin.

With more than 10 years of journalism experience, Robin Dupre specializes in the offshore sector of the oil and gas industry. Email Robin at rdupre@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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Max Petroleum Starts Drilling Ops at ZMA-E5

Max Petroleum Plc, an oil and gas exploration and production company focused on Kazakhstan, announced that it has commenced drilling the ZMA-E5 development well in the Zhana Makat Field on Block E using Zhanros Drilling's ZJ-20 rig. Total vertical depth of the well will be approximately 2,904 feet (885 meters) targeting Jurassic reservoirs.

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Drilling report, April 21

The drilling report was produced with data from the Texas Railroad Commission, from April 7 to 13. The following counties were searched: Anderson, Angelina, Camp, Cass, Cherokee, Dallas, Ellis, Freestone, Gregg, Harrison, Henderson, Houston, Kaufman, Leon, Limestone, Marion, Nacogdoches, Navarro, Panola, Rains, Robertson, Rusk, San Augustine, Shelby, Smith, Upshur, Van Zandt and Wood. For information contact Business Editor Casey Murphy at cmurphy@tylerpaper.com or 903-596-6289.

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Bill Seeks to Allow Drilling Near US Mexico Maritime Border

A legislative hearing will take place Thursday in Washington D.C. as lawmakers consider a bill that would lift the current moratorium on drilling along the U.S.-Mexico maritime border in the Gulf of Mexico.

H.R. 1613, the Outer Continental Shelf Transboundary Hydrocarbon Agreement Authorization Act, would amend the Outer Continental Shelf Lands Act and implement the terms of the U.S.-Mexico Transboundary Hydrocarbon Reservoirs Agreement. That agreement, signed in February 2012 by then Secretary of State Hillary Clinton and Mexico's Minister of Foreign Affairs Patricia Espinosa Castellano at the G-20 Summit in Los Cabos, Mexico, would govern development of shared oil and natural gas resources in the U.S. Gulf between the United States and Mexico maritime border.

The agreement lifts the current moratorium on exploration and production along the Western Gap section of the boundary, opening up 1.5 million acres in the Gulf previously off limits due to border issues, and provides a framework for the safe management of oil and gas resources in the boundary area. Leaseholders on the U.S. side of the boundary and Petroleos Mexicanos would be able to explore and exploit a transboundary reservoir as a unit as leaseholders are permitted to do on the U.S. side of the boundary. The agreement also would allow a means of resolving disputes and establish a system of joint inspections.

"This bill is another step towards embracing an all of the above approach to energy that safely develops our natural resources to help achieve North American energy independence," said Rep. Jeff Duncan (R-S.C.), who co-authored the bill along with House Natural Resources Committee Chairman Doc Hastings (R-Wash.) and House Foreign Affairs Subcommittee on Western Hemisphere Chairman Matt Salmon (R-Ariz.), in a statement. "This bill will help lower energy costs while creating American jobs by safely opening up more areas in the Gulf of Mexico for exploration and production."

"Approval and implementation of this agreement is unquestionably in the national interests of the U.S. as a step towards energy security and job creation in the United States, as well as much needed energy reform in Mexico, and Western Hemisphere energy independence," said Salmon in a statement. "We can achieve energy independence and better energy cooperation with our neighbor and this is an important step in that direction."

Mexico's Senate ratified the agreement in April 2012. The agreement was negotiated pursuant to the 2000 Treaty on the Continental Shelf, which called for the United States and Mexico to establish a mechanism that transboundary oil and gas reserves would be shared equitably, according to a December 2012 report prepared for the U.S. Senate's Committee on Foreign Relations. At the time, concern that companies would drain Mexican reserves from the United States side of the border was reportedly a hot button political issue in Mexico. The United States placed a moratorium on oil and gas exploration on the U.S. side of the maritime border upon conclusion of the 2000 Treaty.

Former Sen. Richard Lugar (R-Indiana) last year urged the Obama administration to send the U.S. Mexico Transboundary Agreement to Congress and for his colleagues to pass the agreement. Lugar, who requested senior staff members review opportunities for enhanced U.S.-Mexico engagement on oil and gas issues including the transboundary agreement, said congressional attention to the Mexican energy situation is critical for understanding bilateral issues between our countries and for consideration of U.S. energy security.

"Mexico is a reliable supplier of oil to the United States," said Lugar in a December 2012 report. "The question for U.S. policymakers is what volumes Mexico will be able to export in the future."

Mexican production has dropped by over a quarter in the past decade, and the collapse of Venezuelan heavy oil production and insufficient pipeline infrastructure to bring Canadian oil sands production to Gulf Coast refineries means the United States in effect has had to increase imports of Middle East crudes to make up for Mexico production shortfalls, Lugar added.

"After the Obama administration did the important work of negotiating the Transboundary Hydrocarbon Agreement, they have failed to either send the agreement to the Senate as a treaty or decide that the agreement is an Executive Agreement," said Daniel R. Simmons, director of regulatory and state affairs, with the Institute for Energy Research in an a Congressional hearing last month. "So far, the administration's actions on the agreement are similar to its actions (or really, lack of action) on the Keystone XL pipeline."

The U.S.-Mexico maritime border area could hold up to 172 million barrels of oil and 304 billion cubic feet of natural gas, according to the U.S. Department of the Interior.

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

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Nighthawk Commences New Drilling Campaign in Colorado

Nighthawk, the U.S. focused oil development and production company, announced an update on drilling and development at its 100-percent controlled and operated Smoky Hill and Jolly Ranch projects in the Denver-Julesburg Basin, Colorado.

Two well drilling program underway at Smoky Hill with Big Sky 4-11 well was spudTaos 1-10 well, also at Smoky Hill, to be drilled immediately after Big Sky 4-11Both wells planned as development wells to increase production and reserves at the newly named Arikaree Creek oilfield, discovered by Nighthawk's Steamboat Hansen 8-10 well in October 2012Further geoscience analysis of 2012 drilling and logging results has confirmed the stacked pay potential across Nighthawk's acreage with at least ten stratigraphic targets covering both shale/carbonate resource and conventional opportunities   Increased third party drilling activity across southeast Colorado continues to demonstrate the widespread nature of the stacked pay opportunity

The Steamboat Hansen 8-10 well, drilled in October 2012, discovered a conventional Mississippian age oil reservoir. The well began production late in November 2012, and up to the end of March 2013 produced over 30,000 barrels of oil. In line with Colorado State requirements, the discovery has been designated the Arikaree Creek oilfield. Nighthawk has now commenced the further development of Arikaree Creek with a two well program aimed at increasing both production and reserves.

The first well in the program, Big Sky 4-11, was spud April 17. The well is located half a mile north-east of Steamboat Hansen 8-10 and is expected to be drilled to basement depth of 8,600 feet. The well will be logged, with sidewall cores and pressure and volume testing also planned. Completion of the well will require new topside facilities.

The second well in the program, the Taos 1-10 well, is to be located nearer to the Steamboat Hansen well. This well is also expected to be drilled to a depth of 8,600 feet and completion is likely to utilize the existing production facilities at Steamboat Hansen, although some increase in capacity may be required.

The Company has now completed an extensive geoscience analysis of the results from the 2012 five well drilling program. This work has also benefited from independent geological and petrophysical analysis and has been further informed by results from the current work-over program.

The analysis has confirmed that Nighthawk is positioned in the center of a wide-spread stacked formation play that extends over a large area of southeast Colorado. This stacked formation play significantly enhances the opportunity for Nighthawk as it expands the number of drilling targets both vertically and areally, mitigating drilling risk and enhancing well economics.

Nighthawk's analysis has identified at least ten stratigraphic targets over a 2,000 feet Pennsylvanian and Mississippian interval which includes the shale/carbonate Cherokee and Marmaton horizons as well as conventional targets such as the Lansing/Kansas City and Spergen horizons.

Results from the drilling program also confirmed the potential for localized 'sweet spots' where subsurface structuring may enhance the production potential across the multiple stratigraphic targets. Nighthawk has identified a number of such locations and permitting for future drilling is underway. The Company is also increasing its data collection with the purchase of additional 2D seismic lines, extensive logging of the two new wells and on the Big Sky 4-11 well, collection of sidewall cores and pressure and volume testing. Further 3D seismic is also planned.

Nighthawk is currently producing commercial quantities of oil from three horizons. The Steamboat Hansen 8-10 produces from the Mississippian Spergen, the John Craig 6-2 from the Pennsylvanian Marmaton carbonates, whilst other Jolly Ranch Project wells are producing from the Pennsylvanian Cherokee carbonates. Production from the Lansing/Kansas City horizon is currently being evaluated at the Whistler 6-22 well, as part of the ongoing workover program.

Third party activity in the area is increasing, with the rig count rising, and a number of 3D seismic programs underway. At least eight companies are currently drilling a mix of vertical and horizontal wells in the immediate area, with multiple stratigraphic targets including the Cherokee, Marmaton, Atoka, Morrow and Mississippian horizons.      

Stephen Gutteridge, chairman of Nighthawk, commented:

"Our current two well drilling program is aimed at increasing our production and reserve base and pushing our existing positive cash generation to a higher level. Beyond that however, the emerging picture is that we are centrally positioned in a large-scale, stacked formation play that is now undergoing a significant amount of drilling and development by a wide range of companies. On our acreage, which is one of the largest land positions in the area, we see a major opportunity for multiple drilling of multiple stratigraphic targets and we will be planning for extensive additional development activity in the second half of the year."

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