What's new in exploration

	Vol. 224 No. 6
PERRY A. FISCHER, EDITOR

Say what? New research shows that loud noise significantly damages the ears of fish. In the first ever study of the effects of loud man-made sound on fish in the wild, University of Maryland professor Arthur N. Popper and his colleagues found that injury to fish ears from manmade noise was greater than they had anticipated. Popper knew that fish sensory hair cells – common in the inner ears in all vertebrates – repair themselves if damaged, something human sensory hair cells cannot do. However, in this experiment in an Australian harbor, he found evidence that the fishes’ hearing not only was badly damaged, but that the sensory hair cells didn’t grow back, even over two months. The study appeared in the January issue of the Journal of the Acoustical Society of America. More research, of course, was called for.

What makes this of interest to the exploration community is that it goes beyond the present debate concerning marine mammals and regulation; these are just fish – pink snapper to be precise. And the noise source was a seismic air gun.

Crummy lease results. Oil and gas leases held in May on Alaska’s Cook Inlet and the North Slope Foothills drew mediocre interest at best as companies and speculators bid $923,700 for 28 tracts covering 109,400 acres. The state holds oil and gas sales each year, putting all the acreage that’s not under lease up for bids. All but one of the tracts were in and around Cook Inlet, where Prodigy Alaska was the high bidder, picking up seven leases for $415,400. Forest Oil picked up three tracts for a total of $56,400. One of them is onshore near its offshore Redoubt Shoal field, which is estimated to contain more than 100 million barrels of oil, making it one of the best discoveries in years. Marathon Oil, Unocal and Pelican Hill Oil & Gas also bought leases, as did four groups of independent investors. This was the third time the state has sold leases in the North Slope Foothills. The first was in 2001, when it sold 170 tracts. Last year, oil companies bought 51 tracts. This time, only one lease was bought in the North Slope Foothills, where EnCana Oil & Gas was the sole bidder, picking up 5,760 highly prospective acres for $36,600. Anadarko and PetroCanada are the largest lease holders there. The area, on the north side of the Brooks Range between the Gates of the Arctic National Park and the Arctic National Wildlife Reserve, is thought to have large gas reserves. The state expected more bids on the hilly terrain that lies well south of Prudhoe Bay. 

While researching this topic, this editor ran across the following story in the Anchorage Daily News. It seems that Dan Donkel, who held the leases on the remarkable Redoubt Shoal field until selling them in 1996, won 9 out of the 10 tracts he bid on. Three of the tracts Donkel won were onshore, directly south of the Kenai gas fields. He also bought leases for a series of tracts along the north coast of Nikiski. He picked them all up for $5 an acre, the lowest allowable bid. “I had a real good day,” Donkel said.

Noteworthy discoveries. Niko Resources (90% stake) and Reliance Industries (10%) made another huge discovery in Krishna Godavari basin on Block D6, 16 mi off the East Coast of India. The D6-D1 well was drilled in 4,200 ft of water to a 9,046 TD and encountered over 330 ft of net gas pay. The operator has increased the estimate of initial gas-in-place for its Block D6 discoveries to 10.5 Tcf. This updated figure does not include volumes attributed to the last two wells (D1 and A2) but only the first six wells drilled on the block. The current exploration program has evaluated less than 16% of the total D6 Block area. A 2,500 sq km 3D seismic survey will be shot in October 2003, which will provide the basis for a second exploration drilling campaign. 

   Canadian Natural Resources discovered oil on the Acajou South prospect, 15 mi offshore Côte d’Ivoire in 3,050-ft deep water. Well Acajou-1x reached 8,027-ft TD and encountered a gross oil column of over 250 ft. A 45-ft interval of sands at the top of the oil column tested at an average rate of 3,500 bopd. The oil was 33° API, similar to that found in Espoir field, which lies northeast of the discovery. CNR has a 66.0%, with Tullow Oil and Petroci holding 24.0% and 10.0%.

   Newfield Exploration made a significant deep shelf discovery at West Cameron Block 73, located less than 10 mi offshore Louisiana in about 30 ft of water. The West Cameron 73-1 well was drilled and evaluated with wireline logs to 16,082-ft TD. The well encountered more than 250 ft of net gas pay in two zones below 15,000 ft. Under new rules proposed by MMS, this discovery would qualify for royalty relief on the first 20 Bcf of production. To date, Newfield has drilled six successful deep shelf wells out of nine attempts. This discovery well is the first of eight or more deep-shelf exploration wells that Newfield expects to drill in 2003. Newfield operates the West Cameron 73 discovery with a 70% working interest, partner Westport Resources Corp. owns the remaining 30%.

Bidding rounds scheduled. New Zealand launched a new bidding round for exploration off the Taranaki coast. Applications for nine offshore and eight onshore blocks close on October 31, 2003. Winners will be determined by promising the most ambitious drilling and seismic surveying programs.

Under India’s fourth round of New Exploration Licensing Policy, 24 oil and gas blocks, including 12 deepwater blocks and 11 land blocks, will come under the gavel for international bidding. The deepwater blocks are located on both the East Coast and West Coast. The new policy has been launched against the backdrop of the recent, giant deepwater gas discoveries made in the Krishna-Godavari basin, which have dramatically changed perceptions about the prospectivity of India’s sedimentary basins (see discoveries, above). To further encourage investment, the petroleum ministry will organize road shows in Delhi, London, Calgary, Houston and Perth.

   Nigeria will offer 22 offshore blocks for bidding in the next round, which is expected sometime between now and mid next year, according to Special Adviser to the President on Petroleum Matters, Dr. Rilwanu Lukman, who disclosed this at the Offshore Technology Conference in Houston. In addition, 26 blocks in the Gulf of Guinea will also be put up for bidding at the same time. Lukman further stated that the nation’s reserves now stand at 33 billion barrels of oil and 19 Tcf of gas, up 27% since 1998, mostly due to deepwater discoveries.