Gas Pay News

In the beginning of May, the crew on Maersk Discoverer reached a great milestone when they finalised their latest well two months ahead of time. The well was another East Nile Delta success for BP, discovering 50 m of gas pay in high-quality Oligocene sandstones. On 5 May, Maersk Discoverer completed the deepest well ever drilled in Egypt and the longest ever drilled in the Mediterranean Sea. What makes the well an even greater success is that it was drilled in 234 days, which was a staggering 62 days ahead of BP’s AFE target, thus creating a substantial cost saving. “The strong performance is a result of the dedicated use of the ‘Plan Do Study Act’ methodology in the planning and execution of the work.

Drillsearch Energy Limited announced a new wet gas discovery on the Western Cooper Wet Gas Fairway of the Cooper Basin. The Varanus South-1 well in PEL 513 (Drillsearch 40% and Santos 60% and Operator) is the first well to be drilled by Santos and Drillsearch under the joint venture between the companies announced in July 2013. Varanus South-1 was drilled to a total depth of 3,154 metres as a near-field exploration well. Drillsearch’s preliminary interpretation of wireline logs has confirmed an aggregate best estimate of 18 metres of net gas pay over a gross interval of 365 metres in the Patchawarra Formation and an additional 9 metres of net hydrocarbon pay over a gross interval of 37 metres in the Tirrawarra Formation, which was considered a secondary target.

Natural gas deposits discovered in two locations by Chevron Australia's deepwater drilling exploration program in the Carnarvon Basin. The Pinhoe-1 exploration discovery well encountered approximately 197 feet (60 meters) of net gas pay in the Barrow and Mungaroo Sands. Pinhoe-1 is located in the WA-383-P permit area, located approximately 124 miles (200 kilometers) north of Exmouth off the Western Australia coast. The well was drilled in 3,048 feet (929 meters) of water to a total depth of 13,396 feet (4,083 meters). The Arnhem-1 exploration discovery well confirmed approximately 149 feet (45.5 meters) of net gas pay in the upper Mungaroo Sands. Arnhem-1 is in the WA-364-P permit area, located approximately 180 miles (290 kilometres) north of Exmouth off the Western Australia coast.

Chevron Corp. announced further drilling success in the Carnarvon Basin offshore Western Australia, Australia's premier hydrocarbon basin. The Acme-1 exploration discovery well is located in the WA-205-P permit area offshore Western Australia approximately 93 miles (150 km) from Onslow. Drilled in 2,880 feet (878 m) of water to a depth of 15,469 feet (4,715 m), the well encountered approximately 896 feet (273 m) of net gas pay. George Kirkland, vice chairman, Chevron, said, "In terms of net gas pay, Acme-1 is one of our most significant natural gas discoveries in Australia. Jim Blackwell, president, Chevron Asia Pacific Exploration and Production, said, "We are realizing the opportunities we have as a leading lease holder in the Carnarvon Basin.

Unocal Corp. said development work is going faster than expected on the Muni field in the Gulf of Mexico where appraisal drilling found additional secondary natural gas pay zones. Production from the field on Ship Shoal Block 295 is now expected late this year at an initial sustained rate of 100 million cubic feet of gas and 2,000 barrels of condensate per day, the company said in a report on exploration drilling to date this year prior to Monday's annual meeting in Brea, Calif. Unocal said the first Muni appraisal well penetrated two additional secondary gas pay zones and estimated reserves for the 100 percent owned field offshore Louisiana at 100 to 130 billion cubic feet.

Unocal Corporation's Spirit Energy 76 unit said its exploration drilling successes and aggressive development program on the Gulf of Mexico shelf area in the first half of 1999 should more than offset the natural production declines for the year. "We have a long record of low drilling and operating costs on the shelf, which enables us to enjoy returns that cannot be matched by the typical shelf operator," said Roger C. Beach, Unocal chairman and CEO. Beach noted Spirit Energy's GOM shelf prospects are predominantly natural gas and deliver production quickly, making them extremely attractive in the current capital-constrained environment.

Mobil's wholly owned subsidiary, Mobil Exploration & Producing Australia Pty Ltd., has found significant new gas resources in the Carnarvon Basin, off the northwest coast of Western Australia. This follows two recent major discoveries in exploration permit WA-267-P, in which Mobil has a 25 percent interest. The Orthrus-1 well, the second well of a six-well exploration program in the permit, spudded on October 1 in 3,937 ft. (1,200 m) of water. It reached a depth of 11,712 ft. (3,570 m) and has intersected a total of 173 ft. (53 m) net gas pay. The Orthrus-1 well is located about 16 miles southwest of the Geryon-1 well, the first exploration well in WA-267-P. Geryon-1 was drilled to a total depth of 11,624 ft. (3,543 m).

The third quarter proved to be a prosperous one for oil companies, as most of our sampling realized substantial gains in net income and net operating income for the period, as compared to 1998's third quarter. A higher average worldwide crude oil price was chiefly responsible for the increases, although in some cases, cost-cutting measures also contributed heavily to the financial results. Exploration and production net operating income was up, nearly across the board. However, for the first nine months of 1999, earnings and net income are still down from the same period in 1998. Phillips Petroleum Company reported third-quarter net income of $221 million up from $46 million for the same period last year. Total revenues were $3.8 billion, versus $2.9 billion a year ago.

Lease Sale held in New Orleans this past August. which were awarded at a total cost of approximately $0.6 million dollars. gas pay. water. planned drill site for ATP's High Island Block A-392 development. Stated Senior Vice President Gerald W.