DISCOVERIES/DEVELOPMENTS

Zama gets significant resource upgrade following appraisal program, offshore Mexico

Talos Energy has completed its appraisal program for the Zama discovery on Block 7, in the offshore portion of Mexico’s prolific Sureste basin. As operator, Talos reported the completion of the program’s third and final appraisal well, Zama-3, about nine days ahead of schedule and within budget. The company’s consortium partners include Sierra Oil & Gas, a Wintershall DEA company, and Premier Oil. The first two wells, which also were drilled early this year, reportedly generated results that met or exceeded expectations. Zama-3, drilled approximately 1.5 mi south of Zama-1, was drilled to test the southern extent of the reservoir and capture additional reservoir data. It logged approximately 1,000 ft of gross TVD sand and 748 ft of gross TVD pay-bearing section, which Talos said is consistent with expectations for the southern extension of the Zama reservoir. Zone 3, however, significantly exceeded expectations, with a net-to-gross ratio of about 85%-90%. The consortium captured 717 ft of whole core, with 99% recovery, breaking its own record for the longest whole core from a single well in the history of offshore Mexico. The acquired data have resulted in a refined gross resource estimate of the Zama structure to 670-810-970 MMboe (P90-P50-P10). The consortium reportedly is still aiming to reach FID in 2020, pending government approvals. 

Total, partners take FID for Mero Phase 2, offshore Brazil  

The Libra Consortium—comprising Petrobras (operator, 40%), Total (20%), Shell (20%), CNOOC Limited (10%) and CNPC (10%)—has taken FID for the second phase of the giant Mero project, situated nearly 112 mi off the coast of Rio de Janeiro, in Brazil’s Santos basin. The decision follows the November 2017 start-up of the field’s Early Production System, as well as the launch of the development’s first phase just one month later. The Mero 2 FPSO will have a liquid treatment capacity of 180,000 bpd and is expected to start up by 2022. It also was reported that following the launch of Mero 2, the project will add another two FPSOs of the same capacity. This, however, is subject to approval by the partners. “The decision to launch Mero 2 comes as a new milestone in this large-scale project that will develop the giant oil resources of the Mero field, estimated at 3 to 4 Bbbl,” Arnaud Breuillac, Total’s president of E&P, said in a release. “The Libra Consortium can leverage the excellent productivity of the field to develop a major oil project with technical cost below $20/bbl and low break-even. The Mero project will contribute to the growth of the group’s production from 2020 onwards. Once the full potential of the field is developed, production should reach more than 600,000 bpd.”

CGG, Fairfield Geotechnologies acquire large WAZ survey in Louisiana’s Austin Chalk

CGG and Fairfield Geotechnologies are cooperating in the acquisition of a large-scale, multi-client survey in south-central Louisiana. The new 578-mi² wide-azimuth survey, called Bayou Boeuf, is designed to image the Austin Chalk play and provide a better understanding of the area’s formations. The Bayou Boeuf survey, for which permitting is nearly complete, reportedly provides coverage over Avoyelles, Rapides, Evangeline and Saint Landry Parishes. Acquisition is expected to commence this September. Delivery of fast-track products and final results is expected in first-quarter and third-quarter 2020, respectively. The data reportedly will be processed by CGG, using an advanced AVO-compliant sequence to guarantee that the final data are “reservoir-ready,” paving the way for a fast-track reservoir characterization package that will deliver vital elastic rock property volumes to assist in further development of the reservoir. “This area has attracted attention from numerous oil and gas majors and large independents and is expected to be the anchor for additional survey growth,” Joe Dryer, president of Fairfield Geotechnologies’ Multi-Client Geosciences, said in a release. “Both CGG and Fairfield Geotechnologies will be marketing this program.” Image: CGG/Fairfield Geotechnologies. Dechun Lin, executive V.P. of Multi-Client & New Ventures, CGG, also commented, “The Austin Chalk is a prospective play that has been gaining interest among operators in the industry. The aim of our Bayou Boeuf survey is to provide a better understanding of the geology in the area, unlocking its potential.”

Eni reports its fifth light oil discovery offshore Angola

Eni has struck its fifth oil discovery in the last year on Block 15/06, in Angola’s deep offshore. The Agidigbo-1 NFW was drilled by the West Gemini drillship, in a water depth of about 902 ft, reaching a TD of more than 12,467 ft. It reportedly proved a single hydrocarbon column composed of a gas cap of nearly 197 ft and 328 ft of light oil in the Lower Miocene sandstones, with good petrophysical properties. Eni reported that the discovery has further upside potential; therefore, it will be proved by an appraisal campaign that is anticipated to begin in early 2020. Analysis of post-drill results, however, indicates between 300 MMbbl and 400 MMbbl of light oil-in-place. Eni said that the find is situated close enough to the block’s East Hub facilities and subsea network that production likely can be fast-tracked, extending the Armada Olombendo FPSO production plateau. The fifth discovery on Block 15/06 since the JV—consisting of Eni (operator, 36.8421%), Sonangol P&P (36.8421%) and SSI Fifteen Limited (26.3158%)—re-launched its exploration efforts a year ago, Agidigbo follows the Kalimba, Afoxé, Agogo and Ndungu discoveries. Together, they are believed to contain an estimated 1.8 Bbbl of light oil in-place, with possible upside. 

Kosmos Energy’s Greater Tortue

Ahmeyim-1 well (GTA-1), which was drilled on the eastern anticline within the unit development area of Greater Tortue, encountered nearly 98.5 ft of net gas pay in high-quality Albian reservoir. The well was drilled in approximately 8,202 ft of water, to a TD of over 16,023 ft. According to the company, the Greater Tortue Ahmeyim LNG project is on track to deliver first gas in the first half of 2022, and the well is expected to further optimize the development drilling plans for the BP-operated project. Chairman and CEO Andrew G. Inglis said, “The GTA-1 well confirms our expectation that the gas resource at Greater Tortue Ahmeyim will continue to grow over time and could lead to further expansion of this [project].”

BUSINESS

Comstock Resources becomes Haynesville leader with $2.2-billion acquisition

Comstock Resources has entered an agreement to acquire Covey Park Energy for approximately $2.2 billion. The acquisition expands Comstock’s position in the Haynesville shale, adding 293,000 net Haynesville acres with approximately 2,000 net drilling locations, including about 1,300 net locations with lateral length potential over 5,000 ft. The company is now the basin’s leader, with over 1.1 Bcfed of net production, approximately 374,000 net acres, 5.4 Tcfe of SEC proved reserves and 7.6 Tcfe SPE proved reserves.  In a release, Comstock CEO M. Jay Allison said, “After a year of evaluating several potential targets in the Haynesville shale, we believe we have found the perfect merger partner. This merger is an excellent fit with our existing acreage, and continues our strategic plan of creating significant scale and resource depth in the Haynesville shale basin. The combined company will have a stronger balance sheet, enhanced by a larger inventory of high-quality, low-cost and high-return drilling opportunities.” 

Devon Energy completes sale of Canadian business

Devon Energy Corp. has completed sale of its Canadian operations to Canadian Natural Resources Limited for $2.8 billion. The company said that it plans to repatriate the net sales proceeds ($2.5 billion), along with Canadian cash balances of approximately $500 million, to the U.S. to repay debt. Under terms of the agreement, Canadian Natural Resources will add approximately 720 employees to its thermal insitu, primary heavy oil and Calgary head office teams. The company said that the acquired production, infrastructure and land will add significantly to its existing thermal insitu and primary heavy oil areas. For Devon Energy, the transaction is another step toward transforming itself into a high-return U.S. oil growth business. It said that it also continues to advance the divestiture process for its Barnett shale assets in North Texas.

PRODUCTION

Total starts production at Culzean field, offshore the UK

Total reported in early June that production had begun from the Culzean project, a gas-condensate field on Block 22/25a of the Central Graben area, nearly 143 mi off the coast of Aberdeen, UK. Discovered in 2008 by Maersk Oil, Culzean field contains an estimated 250 MMboe to 300 MMboe. The project included the drilling of six wells, the construction of three bridge-linked platforms and an FSO unit. With plateau production of 100,000 boed, the field will account for approximately 5% of the UK’s gas consumption. Gas from Culzean will be exported via the CATS pipeline and the UK National Grid, while condensate will be stored in the FSO for offloading by shuttle tanker. Total is the field’s operator, with a 49.99% participating interest. Partners include BP (32%) and JX Nippon (18.01%). According to Total, the project was delivered ahead of schedule and more than 10% below the initial budget, representing capex savings of more than $500 million. 

Hurricane Energy reports first oil at Lancaster EPS, in the UK

Hurricane Energy has reported completion of the start-up phase of the Aoka Mizu FPSO (pictured) via a 72-hr production test. The combined flow from both wells during the test period reached and maintained the planned production rate of 20,000 bopd, according to the company. There will be an anticipated, gradual ramp-up of facilities availability over the first six months of production to a long-term operating efficiency of 85%. Lancaster reportedly is the UK’s first producing fractured basement field. In a release, Hurricane CEO Dr. Robert Trice said, “I am delighted to announce that first oil has been achieved and that the Lancaster field is now on production, beginning the phased development of Hurricane’s considerable resources on the Rona Ridge.”