May 1998 Vol. 219 No. 5  Exploration

J. John Grow,  Engineering Editor

Ultra-deepwater drilling commitment

Exxon signed a letter of intent that will result in construction of Global Marine's second Glomar 456 Class dynamically positioned drillship. Global Marine Inc. (GMI) has received its second deepwater drilling commitment in less than a month, this time from Exxon Exploration Co.

Exxon could, until the end of June 1998, elect to reduce the contract term to two years, in which case GMI would have the right to market the new drillship for a total of one year during the three-year term.

This will bring GMI's deepwater fleet to 10 rigs. This is the third deepwater fleet addition so far in 1998. Since Jan. 1, 1998, GMI has approved over $800 million to expand its fleet, reflecting confidence in the fundamental strength of the offshore drilling business. This confidence is supported by 17 new contract commitments received so far in 1998, including commitments for two new drillships.

The new ultra-deepwater rig is scheduled to be delivered in the first quarter of 2000 and will initially be outfitted to work in water depths to 8,000 ft, but can be equipped to operate in 12,000 ft, incorporating a unique horizontal / vertical pipe-handling system. Ship capabilities will include: drilling while simultaneously making up casing strings or bottomhole assemblies, crude oil storage capacity of 130,000 bbl, dual subsea-tree handling, independent mud and brine systems, and ample space to install well-testing equipment. The Glomar 456 design is ideally suited for ultra-deepwater development drilling and extended well testing.

Houston-based GMI is one of the largest offshore drilling contractors with an active fleet of 31 mobile rigs worldwide plus two new drillships.

Exploratory South Central Italian well successfully tested. Mobil Corp. announced that Mobil Oil Italiana S.p.A., a wholly owned subsidiary, and partners have successfully tested the Tempa d'Emma 1 located in South Central Italy. The exploratory well is onshore and adjacent to the Tempa Rossa field discovered in 1989.

The well encountered a gross oil column of over 5,320 ft (1,622 m) and was drilled to 20,340 ft (6,200 m) TD. It flowed 8,038 bpd of 16.5°API crude.

This is the fifth successful well drilled in the Tempa Rossa area. An extended test well for further reservoir performance evaluation is planned for later this year.

Area evaluation will continue with the next appraisal well scheduled to spud later in 1998. Pending a decision to proceed with commercial field development expected later this year, an appraisal and development plan is being formulated.

Mobil began E&P activities in Italy late 1994 and further exploration programs are planned in several concessions within the southern Apennine region and Sicily.

Parker Creek field flow test successful. Remington Oil and Gas Corp. announced a successful flow test on their Box-Butler 5-5 1 well in the Parker Creek field (formerly referred to as Moselle Dome), in Jones County, Mississippi.

The Box-Butler 5-5 1 was drilled to 13,650 ft TD and encountered more than 160 ft of net oil pay in multiple Cretaceous sands. In the primary objective Hosston sand, 95 ft of net oil pay was logged and then confirmed by flow testing. Perforations from a 56-ft gross interval in the Hosston sand yielded 865 bopd with 150 psi flowing tubing pressure on a 20/64-in. choke. Production sales from this well are expected by the end of March. This well was drilled 2,500 ft south of the Box-Gladys Knight 1 discovery drilled in 1996. Production commenced from the Knight well in March 1997 at a rate of 312 bopd with 195-psi flowing tubing pressure on a 22/64-in. choke.

In addition to the Box-Butler 5-5 1, the company drilled and logged the Knight-Holliman 32-11 1 development well, also located in the Parker Creek field. Drilled to a depth of 8,650 ft, this well logged over 300 ft of oil pay in multiple Eutaw and Tuscalousa, Cretaceous aged sands. Production casing has been set to TD, and the well is awaiting completion, which is scheduled for late March.

Remington Oil and Gas Corp., formerly Box Energy Corp., is an independent oil and gas exploration and production company headquartered in Dallas, Texas.

E&D projects slated in Alaska. Over the next five years, ARCO Alaska, Inc. expects to spend $2.5 billion on oil field E&D projects in Alaska, an $800 million or 47% increase over the company's 1997 five-year plan.

Increased funding will be used for development of recently discovered Tarn field, increased development drilling of Kuparuk River field and continuing West Sak field development. Funding also includes development of Alpine field and expansion of EOR efforts at Prudhoe Bay and Point McIntyre.

ARCO plans to fully develop Tarn field. Located seven miles southwest of the existing Kuparuk oil field, Tarn is expected to begin production early 1999 with initial rates of 15,000 bopd.

Phase 1 of the 50-well West Sak field development has already been approved. The 1998 five-year plan includes additional West Sak development drilling should Phase 1 be successful. Initial development will yield 7,000 bopd production rates and 50 MMbbl reserves. Phase 2 development would attempt to push production to 11,000 bopd in 2001 and 70,000 bopd in 2006, with reserves of 400 MMbbl.

The 1998 five-year capital plan allocates $1 billion to existing assets, such as Prudhoe Bay, Greater Pt. McIntyre and Kuparuk; $800 million to new developments, such as West Sak, Tarn and Alpine; and $700 million to exploration.

ARCO Alaska's 1998 capital budget calls for an 87% increase over that of 1997, proof that ARCO is working to stabilize and maintain its Alaska production through 2005.

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