New Wells to Pump Up Maari Profits

Oil production from Taranaki's offshore Maari field picked up in the March quarter after interruptions during the December quarter, as partners prepare for the big second phase of field development later this year.

Maari is New Zealand's largest producing oilfield. Maari's main 69 percent shareholder OMV is bringing two drilling rigs to New Zealand in coming months, while United States-based Anadarko is also bringing a rig late this year to explore deep water prospects.

The highly successful Maari field produces about 10,000 barrels of oil per day (bpd) and has now pumped out 21.5 million barrels in total since it started in 2009, after hitting an initial peak of 40,000 bpd.

It has already paid back its development costs of more than $854 million (NZ$1 billion). In 2011 OMV paid royalties of almost $70 million (NZ$82 million) to the government and tax of $107.6 million (NZ$126 million), making a profit of $276 million (NZ$324 million).

The Maari/Manaia field is operated by Austrian-based OMV which carried out a series of well workovers last year to fix electrical pumps to improve the field's performance.

Horizon Oil, a 10 percent shareholder in the Maari field, has announced its share of production in the March quarter was 77,409 barrels, up from almost 63,000 barrels in the December quarter.

But partners are aiming to lift production further with new production wells at Maari, and two new exploration wells at nearby Manaia. Later an exploration well is planned for the nearby Whio prospect.

The Ensco drilling rig is due to arrive in New Zealand waters in the December quarter, to drill extra production wells at Maari and the adjacent Manaia fields.

The programme will take about 12 months to complete and is expected to increase the field's production rate by perhaps a couple of thousand barrels a day in the medium term, and lift total oil recovery in the longer term.

In the September quarter, the semi- submersible Kan Tan IV drilling rig is due to arrive and start drilling two exploration wells, before later returning to drill the Whio prospect.

Copyright 2013 Wellington Newspapers Limited. All Rights Reserved.

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Petroceltic Plans Nine Wells over 18 Months

Junior oil and gas firm Petroceltic International outlined plans to drill a minimum of nine wells during the next 18 months when it reported its annual results Monday.

Petroceltic said that its drilling campaign would take place across Bulgaria, Egypt, Kurdistan and Romania.

In Bulgaria, where Petroceltic operates three production licenses including the Galata gas field that it brought into production in 2004, the firm said that its latest exploration well – Kamchia – was spud this month and, if successful, could be rapidly developed through existing infrastructure.

The firm said it was continuing to invest in Egypt, in spite of the high degree of political uncertainty in the country, and that the recent award to it of the onshore South Idku and offshore North Thekah blocks was evidence of its commitment to the country.

In the Kurdistan region of Iraq, a joint venture in which Petroceltic is a part plans to begin drilling two high-impact prospects during the second half of 2013. The firm said that a number of prospects within the joint venture's Shakrok and Dinarta block are assessed to contain prospective resources in excess of 500 million barrels.

During 2012, Petroceltic acquired highly-quality 3D seismic data over the Muridava and Est Cobalcescu blocks in Romania as part of the country's 10th Licensing Round. The firm said it has identified the presence of a variety of potentially material exploration leads and prospects on these blocks, and it plans to drill two of these during 2013 as part of a wider Black Sea campaign. A further four wells are scheduled for 2014.

Meanwhile, Petroceltic has resumed planning for an appraisal well in Italy on the Elsa discovery offshore Abruzzo and was recently awarded the Central Adriatic permit B.R272.EL. Onshore, the firm has made steady progress on the permitting for its Carpignano Sesia well in the western Po Valley.

Petroceltic also said that it has booked reserves for its Ain Tsila assets of 304 million barrels of oil equivalent after a Declaration of Commerciality was made in December 2012.

The firm exceed its production target of 28,000 barrels of oil equivalent per day (boepd) during 2012, with the full-year pro-forma rate coming in at 28,400 boepd.

Petroceltic Chairman Robert Adair commented in a statement:

"Petroceltic has fundamentally transformed its business over the past year. The merger with Melrose in October 2012 has created a significant, regionally focussed, full cycle, independent oil and gas company. This combination has produced a company with stable finances and excellent growth prospects. Petroceltic has the technical expertise and ambition to develop further over the next 12 months while the recent announcement of our new $500 million financing facility represents a strong technical and financial endorsement of the quality of our producing assets and longer term growth ambitions of the group.

"All key objectives set out at the end of last year have been met or exceeded. The Declaration of Commerciality, announced in December 2012, is a significant milestone in the development of our Algerian asset, this has allowed us to book reserves for the Ain Tsila asset for the first time. Looking forward, we have an exciting programme of exploration and appraisal planned over the coming 18 months with a minimum of nine wells planned across our portfolio in North Africa, the Black Sea and the Kurdistan Region of Iraq."

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

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Repsol Discovers Oil in Three Alaskan Wells

Spain's Repsol reported Tuesday that it has made three oil discoveries in Alaska as it completes its winter drilling campaign in the North Slope region.

Three wells drilled found crude oil at different depths, the firm said. The Qugruk 1 and Qugruk 6 wells produced two hydrocarbons shows that subsequently generated encouraging results during production tests. In the Qugruk 3 well, hydrocarbons were identified at several levels.  The Q-1, Q-3 and Q-6 wells reached depths of 8,180 feet, 10,545 feet and 8,650 feet respectively.

Repsol said the results are encouraging for the future development of the resources discovered. The firm added that the North Slope of Alaska is an "especially promising area for Repsol" as it has shown itself to be oil rich.

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Repsol Discovers Oil in Three Alaskan Wells

Spain's Repsol reported Tuesday that it has made three oil discoveries in Alaska as it completes its winter drilling campaign in the North Slope region.

Three wells drilled found crude oil at different depths, the firm said. The Qugruk 1 and Qugruk 6 wells produced two hydrocarbons shows that subsequently generated encouraging results during production tests. In the Qugruk 3 well, hydrocarbons were identified at several levels.  The Q-1, Q-3 and Q-6 wells reached depths of 8,180 feet, 10,545 feet and 8,650 feet respectively.

Repsol said the results are encouraging for the future development of the resources discovered. The firm added that the North Slope of Alaska is an "especially promising area for Repsol" as it has shown itself to be oil rich.

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Drilling Begins at WellStar's North Dakota Wells

WellStar Energy Corp. announced that the first well has been drilled and the second well has been spud on its anticipated primary non-operated joint venture (JV) in Dunn County, North Dakota. The Company expects to have a 40 percent working interest in each of the wells upon completion of the acquisition from a private Colorado corporation (the "Vendor") of certain non-operated oil and gas properties consisting of approximately 18,271 gross (7,273 net) contiguous acres located in North Dakota (the "Assets") which will constitute a "fundamental acquisition" (the "Acquisition") for the Company under the policies of the TSX Venture Exchange (the "TSXV").

In addition, two wells have recently been drilled and completed in the Bakken formation on the Company's anticipated secondary joint venture lands, which are contiguous to the primary joint venture but have a different operating partner. The wells are currently producing from two drilling units in which the Company has a potential 12.497 and a 5.208 percent working interest. The Vendor, through consultation with the Company, participated in the FREDERICKS USA 43-26H well (the Fredericks Well). Upon closing of the Acquisition, the Company expects to have a 5.208 percent working interest in the Fredericks Well. The second well, GARY BELL USA 23-36H ("Gary Bell Well") was successfully drilled and completed. The Vendor, through consultation with the Company, went non-consent on the Gary Bell Well. The Company expects to have a 12.497 percent working interest in the Gary Bell Well upon closing of the Acquisition after a three hundred percent penalty is paid from production revenue. Both wells have been put on confidential well status.

WellStar reported it entered into a purchase and sale agreement, as amended with the Vendor in connection with the proposed Acquisition. The Company and the Vendor have entered into a second amending agreement dated April 3 whereby the parties have agreed, among other things, to extend the termination date of the Purchase Agreement from April 16 to May 15. In addition, pursuant to the terms of the Amending Agreement, the purchase price for the Assets has been increased to $51,600,000 from $51,550,000.

Closing of the Acquisition is subject to, among other things, the Company securing satisfactory financing and obtaining approval of the TSXV, including review of a title opinion with respect to the Assets. There can be no assurance that the Acquisition will be completed as proposed or at all. As such, trading in the Company's shares remains highly speculative.

WellStar President Andrew H. Rees commented, "Management is extremely pleased that drilling has commenced on its anticipated primary JV and with the success of the two wells recently completed on its potential secondary JV as they mark the first wells drilled on the leases subsequent to the effective date of the Acquisition (being November 1, 2012 in the event that the Acquisition is completed). The Company has potential exposure to 17 gross (5.21 net) wells that have either been recently drilled or are currently scheduled to be drilled. These consist of 3 gross (0.58 net) wells drilled in 2013, 1 gross (0.4 net) well that is currently in progress and 13 gross (4.23 net) additional wells currently scheduled to be drilled; 10 of which are expected to be drilled on the primary JV and 3 of which are expected to be drilled on the secondary JV."

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ConocoPhillips: Natural Gas Prices Too Low for New San Juan Basin Wells

ConocoPhillips said it is temporarily suspending new drilling in the San Juan Basin in New Mexico and Colorado, citing low natural gas prices that make it uneconomical to drill new wells in the area.

"Natural gas prices have continued to be rather low," Conoco spokesman Jim Lowry said, adding that the company would be watching natural gas prices and resume drilling "as soon as it becomes economical," though he declined to set a specific target price.

Natural gas futures have rallied in recent weeks as cold weather has prompted demand for fuel. Natural gas for May delivery settled at $4.02 Thursday.

The company had three drilling rigs working in the area. Mr. Lowry said the suspension will only affect new wells. ConocoPhillips continues to produce more than 1 billion cubic feet of natural gas per day in the San Juan basin.

The company told its employees of the decision Tuesday, Mr. Lowry said Thursday

Copyright (c) 2012 Dow Jones & Company, Inc.

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ConocoPhillips: Natural Gas Prices Too Low for New San Juan Basin Wells

ConocoPhillips said it is temporarily suspending new drilling in the San Juan Basin in New Mexico and Colorado, citing low natural gas prices that make it uneconomical to drill new wells in the area.

"Natural gas prices have continued to be rather low," Conoco spokesman Jim Lowry said, adding that the company would be watching natural gas prices and resume drilling "as soon as it becomes economical," though he declined to set a specific target price.

Natural gas futures have rallied in recent weeks as cold weather has prompted demand for fuel. Natural gas for May delivery settled at $4.02 Thursday.

The company had three drilling rigs working in the area. Mr. Lowry said the suspension will only affect new wells. ConocoPhillips continues to produce more than 1 billion cubic feet of natural gas per day in the San Juan basin.

The company told its employees of the decision Tuesday, Mr. Lowry said Thursday

Copyright (c) 2012 Dow Jones & Company, Inc.

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Faroe Still on Target to Drill 5 Wells in 2013

Faroe Petroleum remains on target to drill five fully-funded exploration wells during the remainder of this year, the company said as it released its annual results Tuesday.

Faroe said its capital expenditure plans for 2013 "will be significant" with it earmarking some GBP 170 million ($258 million) to be spent during the year. GBP 120 million ($182 million) of this will be spent on exploration, with the remainder spent on producing fields.

Four wells are planned in Norway (Darwin, Snilehorn, Novus and Butch East) while one appraisal well is planned in the UK (Perth).

In its results for 2012, Faroe said that its 2P (proved and probable) reserves stood at 20.1 million barrels of oil equivalent at the end of December. 95 percent of this is associated with fields currently on production.

2012 total average production was approximately 6,900 barrels of oil equivalent per day (boepd), compared with 2,500 boepd in 2011.

Faroe noted that the Hyme field came on stream in February this year, with net production from the well during 2013 expected to be approximately 1,200 boepd. In addition, several infill wells are planned for 2013 on the Njord, Brage, Ringhorne East and Schooner fields.

In total, 2013 production is expected to be between 7,000 and 9,000 boepd.

Oil sector analysts at London-based investment bank Peel Hunt commented in a statement:

"Success at the drill bit has been modest with two key discoveries, namely Butch and Rodriguez (post year-end). However, Faroe's growth initiatives have remained robust with its successful participation in the UK (seven awards) and the Norwegian (eight awards) licencing rounds and its entry into Iceland."

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

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Faroe Still on Target to Drill 5 Wells in 2013

Faroe Petroleum remains on target to drill five fully-funded exploration wells during the remainder of this year, the company said as it released its annual results Tuesday.

Faroe said its capital expenditure plans for 2013 "will be significant" with it earmarking some GBP 170 million ($258 million) to be spent during the year. GBP 120 million ($182 million) of this will be spent on exploration, with the remainder spent on producing fields.

Four wells are planned in Norway (Darwin, Snilehorn, Novus and Butch East) while one appraisal well is planned in the UK (Perth).

In its results for 2012, Faroe said that its 2P (proved and probable) reserves stood at 20.1 million barrels of oil equivalent at the end of December. 95 percent of this is associated with fields currently on production.

2012 total average production was approximately 6,900 barrels of oil equivalent per day (boepd), compared with 2,500 boepd in 2011.

Faroe noted that the Hyme field came on stream in February this year, with net production from the well during 2013 expected to be approximately 1,200 boepd. In addition, several infill wells are planned for 2013 on the Njord, Brage, Ringhorne East and Schooner fields.

In total, 2013 production is expected to be between 7,000 and 9,000 boepd.

Oil sector analysts at London-based investment bank Peel Hunt commented in a statement:

"Success at the drill bit has been modest with two key discoveries, namely Butch and Rodriguez (post year-end). However, Faroe's growth initiatives have remained robust with its successful participation in the UK (seven awards) and the Norwegian (eight awards) licencing rounds and its entry into Iceland."

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

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GeoPark Starts Up Production at Colombia Wells

GeoPark Holdings Limited announced the successful drilling, testing and putting into production of two new oil wells in Colombia: Max 2 in the Max oil field in the Llanos 34 Block and La Cuerva CH NE 1 in the La Cuerva oil field in the La Cuerva Block. GeoPark operates both blocks - with a 45-percent working interest in Llanos 34 Block and a 100-percent working interest in La Cuerva Block.

GeoPark drilled and completed the Max 2 well to a total depth of 10,866 feet (3,312 meters). A test conducted with an electrical submersible pump (ESP) in the Guadalupe formation, at approximately 10,171 feet (3,100 meters), resulted in a production rate of approximately 1,532 barrels of oil per day (bopd) of 13.7 API oil, with less than a 1 percent water cut, through a choke of 19 millimeters (mm) and well head pressure of 70 pounds per square inch (psi). Further production history will be required to determine stabilized flow rates and the extent of the reservoir. Surface facilities are already in place and the produced crude oil is now being marketed and sold. The Max oil field was discovered in March 2012 with the Max 1 well, which is currently producing at a rate of approximately 1,031 bopd.

GeoPark drilled and completed La Cuerva CH NE 1 well to a total depth of 4,196 feet (1,279 meters). A test conducted with an ESP in the Carbonara C5 formation, at approximately 3,855 feet (1,175 meters), resulted in a production rate of approximately 440 bopd of 20.8 API oil, with a 14% water cut, through a choke of 8.7 mm and well head pressure of 100 psi. Further production history will be required to determine stabilized flow rates and the extent of the reservoir. Surface facilities are already in place and the produced crude oil is now being marketed and sold.

GeoPark has interests in ten exploration, development and production blocks in Colombia - in addition to interests in six blocks in Chile and three blocks in Argentina. During 2013, GeoPark will carry out a 35-45 well drilling program in Colombia and Chile - with a total expected work program investment of $200-230 million.

James F. Park, CEO of GeoPark, said: "Since acquiring our Colombian projects just one year ago, we have hit the ground running and been able to record continuous growth in our crude oil production -- both from exploration and development drilling. We are also pleased that our Colombian drilling activities are matching our recent drilling successes in Chile and leading to overall increases in production and cash flow. We look forward to further positive results from our $200+ million investment program through 2013."

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Nighthawk to Drill Two Smoky Hill Wells in Denver-Julesburg Basin

Nighthawk, the U.S. focused shale oil development and production company, announced development plans and an independent reserve report for its 100-percent controlled and operated Smoky Hill project in the Denver-Julesburg Basin, Colorado.

Steamboat Hansen 8-10 discovery to be further developed with two new wells scheduled to be drilled early in the second quarter 2013Production data for the Steamboat Hansen 8-10 well over the period from late November 2012 to 28 February 2013 shows: Cumulative gross production has exceeded 22,000 barrels of oil (average rate of 239 barrels of oil per day (bopd))Gross average daily production rate has increased to over 250 bopdThe payback period on drilling and equipment cost was under 3 monthsIndependent Competent Person's Report ("CPR") on Steamboat Hansen discovery identifies gross Stock Tank barrels of Oil initially-in-Place ("STOIIP") of up to 4.89 million barrels and gross recoverable reserves of up to 755,000 barrelsBased on analysis of the immediately surrounding structures, Nighthawk estimates potential for STOIIP to increase to 14.5 million barrels2Q drilling program anticipated to be fully funded from existing resources and new short-term borrowing facility

The Steamboat Hansen 8-10 well, drilled by Nighthawk in October 2012 discovered a Mississippian age oil reservoir at a depth of just over 8,000 feet. This was the first well drilled in this area of Colorado for over 25 years and is some 50 miles from the nearest Mississippian discovery. The discovery opens up significant new oil potential in the region. The well was successfully completed and brought into production in late November 2012.

In the period to Feb. 28, the well has produced over 22,000 barrels of oil (average 239 bopd), with almost no water, minimal downtime and an increasing daily production rate, generating a gross sales value in excess of $1.75 million, in which Nighthawk has an 80 percent net revenue interest. The payback period on the well's drilling and equipment cost was under three months.

Following the success of the Steamboat Hanson 8-10 well Nighthawk commissioned the Denver office of MHA Petroleum Consultants LLC ("MHA") to produce a CPR including an independent evaluation of the reserves within the Steamboat Hansen discovery and the immediate area. The CPR has been prepared in accordance with the AIM Note for Mining and Oil & Gas Companies June 2009 and subject to the carve out of certain commercially confidential information, a summary of the report will shortly be available on the Company's website.

The Company now plans to commence the next development stage with the drilling of two further wells on the Smoky Hill project. Negotiations are underway to contract for a drilling rig for this next phase and, subject to rig availability and final permitting, it is anticipated that drilling could commence as early as April 2013. This development phase is primarily targeted at increasing production as quickly as possible to generate free cash for further investment in the second half of 2013.

It is anticipated that the two well drilling program will be funded from existing resources and new short-term borrowing facilities, as detailed below.

The Company believes that there is significant upside opportunity beyond the proposed two well program and has taken steps in recent weeks to secure lease positions in the area and commence the permitting process for further new wells.

Nighthawk has secured an offer of a short-term borrowing facility of $5 million (the "Loan Facility") which can be drawn down prior to May 31 to fund drilling, work-over and leasing programs. Current production levels are generating sufficient cash to cover operating costs and overheads and the Board believes that existing cash reserves and the borrowing facility are sufficient to fund the Company's immediate development and leasing plans.

The Loan Facility will be provided by a party connected to the Company's largest shareholder, Johan Claesson. The principal terms of the Loan Facility offer are:

15 percent annual coupon payable quarterly10 percent profit-share after lease operating expenses in Nighthawk's net revenue interest in up to four new producing wells on the Smoky Hill project excluding the existing Steamboat Hansen 8-10 wellRepayable in full no later than May 31, 2014Secured on a single lease held by production

Entering into the Loan Facility will be a related party transaction under the AIM Rules. Accordingly, the Nighthawk Board considers, having consulted with Westhouse Securities Limited the Company's Nominated Adviser, that the terms of the Loan Facility are fair and reasonable in so far as the Company's shareholders are concerned.

Stephen Gutteridge, Chairman of Nighthawk, commented:

"The CPR of MHA Petroleum Consultants is the first step in confirming the significant potential which we identified in the unexplored Smoky Hill acreage, and independently supports the case for further drilling in the area. Whilst we will continue our work to prove up the commerciality of the Cherokee shale opportunity, our short-term focus is on driving up production from the solid base of the Steamboat Hansen 8-10 well by drilling two more production wells.

"The CPR was able to draw on data from just three wells and our existing 3D seismic that covers less than 10 percent of the Smoky Hill area. Given the identified potential in this small area, we are particularly interested in the prospects within the much larger unexplored Smoky Hill acreage and will be drawing up plans for exploration of this area later this year.

"With the $5 million additional funding available, we will be able to move quickly to commence drilling, extend the current work-over program to add incremental production, add to our existing seismic bank and invest in our land position."

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NPD Reports Two Dry NCS Wells

Two dry wells were reported on the Norwegian continental shelf Wednesday.

According to the Norwegian Petroleum Directorate, Statoil's wildcat well 25/11-26 – the 13th exploration well in production license 169 – came up dry, while Maersk Oil Norway failed to find commercial hydrocarbons at its wildcat well 6506/6-2 in the Norwegian North Sea.

The primary target of well 25/11-26, located around 5.5 miles northeast of the Grane field in the North Sea, was to prove petroleum in the Balder formation in the Eocene layer. The Ocean Vanguard (mid-water semisub) rig used to drill the well will now proceed to production license 502 to drill appraisal well 16/5-3 on the Johan Sverdrup discovery.

Well 6506/6-2 was drilled to prove petroleum in Upper Cretaceous reservoir rocks. It was the first exploration well in production license 513, which was awarded in the APA 2008 licensing round. The Transocean Barents (UDW semisub) rig will now move to the Barents Sea, where it will drill development well 7218/11-1 for Repsol Exploration Norge.

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Urals Plans Three Wells in Russia in 2013

Russia-focused Urals Energy announced Thursday that it plans to drill up to three new wells during 2013 at its Arcticneft and Petrosakh operations, after the firm resolved legacy issues to do with loans owed to Petraco Oil Company.

Urals said that the only sum that remains outstanding to Petraco relates to interest owed and total approximately $3 million. It added that the interest payment is expected to be made before the end of this year.

Urals has released the security pledge that Petraco has held over the company's Petrosakh asset and it said it is in discussions about Petraco releasing its security pledge over Arcticneft.

Urals reported that current production at Petrosakh is 1,440 barrels of oil per day (bopd). The company is currently developing a drilling program for Petrosakh and plans to drill up to two new wells there in 2013. Petrosakh is estimated to have 2P reserves standing at 16 million barrels.

The firm also said that production at its Arcticneft asset is now stable and stands at 712 bopd. In 2013, Urals plans to drill one well at Arcticneft – which is estimated to have 2P reserves of 43.6 million barrels.

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JKX Begins Acid Treatment Program on Russian Wells

Eastern Europe-focused JKX Oil & Gas announced Thursday that work has begun on the hydrochloric acid treatment of three wells on its Koshebkhablskoye field in the Republic of Adygea, Russia.

JKX said the objective of the acid treatment program is to enhance well productivity by improving conditions in the near wellbore and the removal of residual drilling solids in the open-hole sections.

The first well in the program, well-25, had a side track completed on it in January and flowed during clean-up at a rate of 13 million cubic feet per day. Improved stable production rates should result from the current acid treatment, said JKX.

JKX Chief Executive Dr. Paul Davies commented in a statement:

"We are pleased to have the hydrochloric acidization program underway and look forward to having all three wells in production by mid-March."

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Urals Plans Three Wells in Russia in 2013

Russia-focused Urals Energy announced Thursday that it plans to drill up to three new wells during 2013 at its Arcticneft and Petrosakh operations, after the firm resolved legacy issues to do with loans owed to Petraco Oil Company.

Urals said that the only sum that remains outstanding to Petraco relates to interest owed and total approximately $3 million. It added that the interest payment is expected to be made before the end of this year.

Urals has released the security pledge that Petraco has held over the company's Petrosakh asset and it said it is in discussions about Petraco releasing its security pledge over Arcticneft.

Urals reported that current production at Petrosakh is 1,440 barrels of oil per day (bopd). The company is currently developing a drilling program for Petrosakh and plans to drill up to two new wells there in 2013. Petrosakh is estimated to have 2P reserves standing at 16 million barrels.

The firm also said that production at its Arcticneft asset is now stable and stands at 712 bopd. In 2013, Urals plans to drill one well at Arcticneft – which is estimated to have 2P reserves of 43.6 million barrels.

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Tui JV to Drill Two Wells in Newly Mapped Area Offshore New Zealand

Partners in the offshore Taranaki Tui oil field disclosed Tuesday that they have approved plans to drill the Pateke-4H infill development well and the Oi exploration well on the offshore PMP 38158 permit, after having successfully negotiated for the use of the semisubmersible, Kan Tan IV.

Pateke-4H targets a newly mapped northern extension of the Pateke North field that is not being accessed by the current producing well, Parteke-3. Pan Pacific Petroleum (PPP), one of the partners in the joint venture, estimated that Pateke-4H has the potential to recover an additional two to four million barrels of oil from the Pateke field.

Commenting on the JV’s plans for Pateke-4H, PPP said in a statement on Tuesday: "Drilling of Pateke-4H is planned for late-2013 to early-2014, subject to rig timing, with subsea tie-in to the Tui field floating production storage and offloading (FPSO) and first oil expected around end-2014 to early-2015."

Pateke-4H will be drilled to a total depth of 22,638 feet (6,900 meters) and will include a 8,202-foot (2,500-meter) horizontal section.
PPP also noted that the Oi prospect is a 4-way dip closure created by drape over an underlying basement high, similar to the structures at the Tui, Amokura and Pateke fields. The Oi exploration well, like Pateke-4H, will also target the same producing reservoir level.

PPP stated that the Oi structure could contain a mean recoverable resource of up to 15 million barrels of oil. As Oi is sited only eight miles to the northeast of the Tui field FPSO, the well can be immediately tied-in and move into the production phase in the event of a commercial discovery. Oi, to be sited 394 feet (120 meters) below waters, will be drilled to 10,499 feet (3,200 meters).

New Zealand's first stand-alone offshore oil development is the Tui Area Oil Project, consisting of three fields, Tui, Amokura and Pateke, connected to the Umuroa FPSO. 

The partners of PMP 38158 are: New Zealand Oil & Gas (12.5 percent), AWE (42.5 percent), Mitsui (35 percent) and PPP (10 percent). AWE is the operator of the permit.

Quintella has reported on the upstream and downstream oil and petrochemicals markets from 2004. Email Quintella at quintella.koh@rigzone.com.

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Gazprom to Start Drilling Onshore Gas Wells in Feb

Bangladesh, Jan. 24 -- Russian oil and gas giant Gazprom will start drilling the country's onshore gas wells in February, a senior Petrobangla official said.

Top Gazprom officials will be visiting Dhaka next week, while inaugurating its first-ever drilling works in Bangladesh, Petrobangla Chairman Dr Hussain Monsur told the FE.

The Russian firm is now carrying out civil works for drilling onshore gas wells in the country's state-run gas-fields.

Gazprom has already shipped two modern drilling rigs for Bangladesh to initiate drilling wells. Initially, the company will drill two wells in Titas and Srikail gas-fields with the rigs, he added.

Gazprom will be the first foreign company in Bangladesh to drill onshore wells on a contract basis to increase the country's overall gas output.

Other international oil companies (IOCs), active in Bangladesh, operate through signing production-sharing contracts (PSCs) or in joint ventures with the Bangladesh Petroleum Exploration and Production Company Ltd (Bapex).

Titas gas-field, owned by the Bangladesh Gas Fields Company Ltd (BGFCL), is the country's second largest gas producing field with its average output of around 452 million cubic feet per day (mmcfd) from 15 gas wells.

However, gas production from the Srikail field has not started yet.

The Russian company inked deals with Petrobangla subsidiaries - BGFCL, Sylhet Gas Fields Ltd (SGFL) and Bapex - on April 26, 2012 to drill 10 development wells across six gas-fields at a total cost of US$ 193.5 million.

It will drill four development wells in BGFCL's Titas gas-field and one well in SGFL's Rashidpur gas-field.

The Petrobangla chairman expressed the hope that Gazprom would be able to drill all the 10 wells by 2013, and natural gas output from these wells would be around 200 mmcfd.

Gazprom's contracts cover construction of drilling pad, camp warehouse and site preparation, rig shifting and commissioning, procurement of drilling materials, engagement of third party services, drilling, testing and commissioning and insurance.

Petrobangla approached Gazprom to develop the wells after Polish oil and gas explorer Poszukiwania Nastyi Gazu Krakow backed out despite being selected in a competitive tender two years ago.

The country subsequently passed a law that bypasses the tender process, and prevents deals inked under the new law from being challenged in courts.

Bangladesh's natural gas output currently hovers around 2,210 mmcfd against the demand for over 2,700-3,000 mmcfd.

The shortage in gas supply has compelled Petrobangla to go for rationing in supply to industries, power plants and compressed natural gas (CNG) filling stations, and to suspend officially new gas connections to households since July 2010. Published by HT Syndication with permission from The Financial Express. For any query with respect to this article or any other content requirement, please contact Editor at htsyndication@hindustantimes.com

Copyright 2013 The Financial Express. All Rights Reserved.

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Your Questions About Oil Wells In Florida

Me and my girlfriend broke up 3 days ago and I got alot on my mind.. Decided to change oil / fluids..?

Well, I ended up draining the oil and antifreeze and not thinking about what I was doing ( alot on my mind ) I stuck the water hose in the oil fill cap and filled the motor up with water… I drained it all out and my Dad says to let it sit in the Florida sun for a week. Am, I screwed or what? Will my car work again? Love Stinks!
I never ran it… After it started over-flowing it was then that I had realized what I had done…

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Your Questions About Oil Wells In Louisiana

Gulf Coast Western – Dallas, TX – Best U.S. Oil Company?

I’m trying to conduct due diligence research on Gulf Coast Western. I’m considering investing. I’ve heard some really great things and read in the LA Times they just hit another well in Louisiana.

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Your Questions About Oil Wells Refilling

Please help! What does this mean heating source: Oil when shopping around on buying homes?

What does it mean while looking up home features when shopping around for homes to buy, heating source: oil???
While others say heating source: electric. I know what electric is, just I have never heard of oil for heating source. I am assuming that has to do with manual distribution from myself to make the heat?? Or from a propane tank maybe that has to be refilled?? It’s a really nice house, but for that kind of thing have never experienced.

Also, well water for water supply to homes, how reliable is well water in most cases? I went to a friends grandmothers house and I remember her telling me in the winter, not to run water while brushing my teeth and take five minute showers. It was because of the temperature being under 30 degrees the water would freeze up in the well so quickly leaving us no water usage eventually.

It’s where I am wanting to buy a home I am coming across these questions. Thanks for your respones!

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