Low-Quality Pay Could Hike Pinedale Reserves

By Anonymous

The placing on production of lowquality pay zones at giant Pinedale gascondensate field in northwest Wyoming could increase the original gas in place estimate, said Ultra Petroleum Corp., Houston. “The significance of continu- ally evaluating the low-quality pay is to provide necessary data to increase the OO IP estimate of Pinedale field and over time, increase Ultra Petroleum’s natural gas reserves and production,” the company said Aug. 5. The company has completed 45 wells in low-quality pay with 178 frac stages, or about four fracs per well across about 450 ft of completed Cretaceous Lance/ Mesaver de section for just the cost of perforating and the added frac stages.

“The results indicate that the low-quality pay is from uncontacted sand lenses near the wellbore that are beyond the detection range of logging tools,” the company said.

Ultra, with plans to have drilled 155 operated wells in Pinedale in 2008, is to have drilled 38 delineation wells this year compared with 13 in 2007. Reserves attributed to all delineation wells drilled so far averaged 120% of predrill reserve estimates.

Ultra drilled and cased 74 wells in the 6 months ended June 30, compared with 87 in all of 2007. Spud to TD averaged 22 days in the most recent quarter, down from 35 days in all of 2007, reducing well costs in spite of large steel price increases.

Further efficiency is expected from a Bureau of Land Management final supplemental environmental impact statement record of decision to be issued shortly that is to allow year-round drilling and completion in concentrated development areas.

Along with a large increase in the number of wells drilled, the full-year access is expected to enable operators to optimize development and limit environmental degradation (OGJ, June 16, 2008, p. 19).

Cuba

Sherritt International Corp., Toronto, its Cuban oil production steady, has finalized the production-sharing contract for a carbon dioxide enhanced oil recovery pilot in Varadero field east of Havana.

After completion of the $15 million pilot, Sherritt will decide whether to proceed to a commercial scale project. Varadero produces 8-10[degrees] gravity oil from 6,000 ft.

Meanwhile, Sherritt signed a production sharing contract on Block 8 in south-central Cuba. The company’s gross working interest oil production in Cuba averaged 33,813 b/d in the quarter ended June 30, compared with 30,899 b/d in the 2007 second quarter.

Indonesia

Continental Energy Corp., Dallas, plans to buy a 30% working interest in the 565,500-acre Tungkal productionsharing contract in Central Sumatra, Indonesia, for $27.32 million, subject to approvals.

Operator Pearl Energy Ltd. of Abu Dhabi with 70% interest produces 1,000 b/d from Mengoepeh field. It is to drill 16 development wells on a southern extension of the field starting in late 2008 with a goal of hiking output to 4,500 b/d.

Two prospects will most likely be drilled after the 16 wells, and 3D seismic is available over the field, Continental said. The company said it is negotiating for another property in Indonesia.

Namibia

The Sintezneftegaz-operated Kunene-1 wildcat on Block 1711 in the Namibe basin off northwestern Namibia is to be tested for gas but probably will not be a commercial producer, said partner EnerGulf Resources Inc., Houston.

EnerGulf elected not to participate in gas tests of the well, the first in the basin south of Angola. The company may elect to pay double its share of testing costs to reinstate its participation in case of a commercial discovery.

The government relieved the participants from performing all other minimum work obligations including drilling a second well because Kunene-1 went below the originally planned 4,400 m Albian- Aptian level to 5,050 m to the synrift Barremian stage.

EnerGulf let a contract to Petrophysical Solutions Inc., Houston, to provide expert gas electric log analysis and rock and fluid interpretation for the well and exploration guidance for Block 1711 and its Lotshi Block in Congo (former Zaire).

Pakistan

Mari Gas Co. Ltd. drillstem tested gas at an unstimulated rate of 8.61 MMcfd from the Sui Main limestone at the Koonj-IA well on the Sukkur exploration block in Pakistan, said partner International Sovereign Energy Corp., Toronto.

Another test will take place following acid stimulation.

The joint venture of Mari Gas 50%, Petroleum Exploration Ltd. 35%, and International Sovereign 15% is exploring two other prospects on the block. The 4.1 sq km Structure B is to be drilled next.

New Brunswick

A gas flow at the rate of 1.058 MMcfd is reported from Mississippian Hiram Brook sandstone at the E-O 8 (Feenan-2) well in eastern New Brunswick.

PetroWorth Resources Inc., Calgary, said the flow is commingled from four zones on a 120-hr test at 155 psi flowing tubing pressure and 347 psi casing pressure.

Feenan-4 reached TD at 1,340 m, and preliminary log interpretation indicates it encountered an extremely hard metamorphosed Hiram Brook section. The Feenan wells are off the west edge of Stoney Creek oil and gas field. Rather than continue to the Mississippian Frederick Brook shale at this location, the company plans to move elsewhere on the 40,846-acre Rosevale license for what should be a less costly attempt.

Quebec

Petrolia, Rimouski, Que., farmed out to an undisclosed oil company its Bourque exploration property 50 km northwest of Gaspe, Que.

The first phase of work includes a 6 0 sq km 3D seismic survey and drilling a well to 3,000 m. Older seismic indicates the possible development of reef complexes under the property along a 20-mile trend.

The farmee is to spend $20 million in 5 years, including $2.5 million in the first 18 months and $8 million in the first 3 years, without financial participation from Petrolia, to secure its right to participate in the agreement and eventually earn a 70% interest. Petrolia will exercise operational control through an executive committee.

Colorado

Pioneer Natural Resources Co., Dallas, has confirmed that a second and third zones in Cretaceous Pierre shale are contributing to gas production in the Raton basin in southeast Colorado.

The company hasn’t yet tested the also-prospective, shallower fourth and fifth members of the shale.

Coalbed methane production from the overlying Raton coals was 24% higher in this year’s first half than the same period of 200 7, and 10-15% yearon-year increases are expected through 2011 as the shale’s share rises.

The company is to ramp up drilling in 2009 from the 160 CBM wells and 15 shale wells planned in 2008. The shale play has evolved in the past 2 years (OGJ, Apr. 14, 2008, Newsletter).

North Dakota

Marathon Oil Corp. plans to drill 65 company-operated wells in the Williston basin Bakken shale oil play in 2008.

The company has seven rigs working and expects to have 100 wells in the play by yearend.

The company’s net Bakken oil and gas production in the quarter ended June 30 was 5,070 boe/d, up 130% from the end of 2007, and was 6,200 boe/d at the end of July.

Copyright PennWell Corporation Aug 18, 2008

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