-Namibia Clears Eco, Partners for Offshore Well
Eco (Atlantic) Oil & Gas has received an environmental clearance certificate from Namibia’s Ministry of Environment and Tourism for an exploration well on the Osprey prospect.
The structure is in the ‘Cooper’ (PEL 30) block in the offshore Walvis basin.
Eco has completed seven years of studies on the block, including regional geological and fracture analysis, a slick review, and assessment of 2D and 3D seismic.
It also contracted independent studies from Petroleum Geo-Services, Azinam, Tullow Oil, and Gustavson Associates.
The PEL 30 partners identified Osprey in 300 m (984 ft) water depth as an 882-MMbboe Aptian/Albian target within a sand-filled channel and fan system in the Cretaceous sequence.
Work continues to determine the optimum location for the well.
Colin Kinley, Eco’s COO, said: “With the final environmental certificates now in place we anticipate moving shortly to selection of drilling location, rig contract discussions and engineering planning for a well in 3Q 2019 or 1Q 2020.
“The company’s strategy in Namibia has been to maintain a careful and cautious pace, to fully and completely understand the region and to de-risk each asset by using industry learnings, successes and experience…
“To the south of the Cooper block, PEL 37 was recently drilled by Tullow, and although it was disappointing commercially for our partners and friends, it has provided Eco with valuable data to help better understand the characteristics of our field.
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2----Commercial Gas Confirmed in Myanmar
Total has participated in a successful appraisal well on the Shwe Yee Htun-2 gas discovery in the A2 block offshore Myanmar.
The well, drilled to a final depth of 4,820 m (15,814 ft), intersected 40 m (131 ft) of net gas pay. Early analysis has confirmed good reservoir quality, permeability, and production deliverability.
It follows the Shwe Yee Htun-1 and Pyi Thit-1 gas finds on the same block in 2016-17. Total estimates combined resources in the range of 2-3 tcf.
Woodside Energy is technical joint operator for exploration and appraisal operations, its partner being MPRL E&P. However, Total, which has a 40% interest in the block, will assume operatorship in the development phase.
Elsewhere in Myanmar, Total operates the M5 and M6 blocks on the Yadana offshore gas field, which began operations in 1998 and which currently supplies half of the country’s gas and around 12% of gas consumed by neighboring Thailand.
Last year, Total also started production from the Badamyar project, designed to extend Yadana’s plateau output beyond 2020.
3----Oil Find in Western Australia
Wood Mackenzie has issued some thoughts on Quadrant Energy’s recent Dorado oil discovery in the Bedout basin offshore Western Australia.
Australasia upstream senior analyst Daniel Toleman said that sometimes, exploration throws up a result that no one saw coming.
Prior to drilling, both WoodMac and Quadrant had viewed the Dorado-1 well as one of the top gas wildcats to watch in the region in 2018. The aim had been to find 545 bcf of gas, but the actual outcome appears to be a large commercial oil find.
Toleman said most offshore operators had given up on finding liquids offshore Western Australia, the last discovery in the region holding more than 50 MMbbl dating back to 2003, and the last 100-MMbbl discovery to 1996.
For block partners Quadrant and Carnarvon finding oil makes development much easier, as oil has a lower-risk profile and does not require gas contracts or infrastructure, which means it is easier and faster to monetize.
Appraisal drilling will be needed to firm up the resource, but according to Toleman, a base case of 150 MMbbl for Dorado would be easily commercial.
Quadrant executive Fred Wehr has said that the potential upside is staggering, claiming that this was something he had never seen during his 35-year career.
But it also remains to be established whether the find is mainly light oil or so light that it is in fact a condensate, normally a natural liquid that ‘drops’ out of wet gas production.
4----Petrobras Gains Extension Offshore Brazil
Petrobras has awarded the Transocean ultra-deepwater drillship Petrobras 10000 a 790-day contract extension offshore Brazil.
The contract is extended through October 2021 and includes a blend and extend modification to the previous contract day rate, effective September 2018. The additional net contract backlog is about $185 million, including cost escalations.
Additionally, Transocean will receive a 5% royalty per day, totaling approximately $16 million, estimated to be from October 2018 to October 2021 associated with the use in Brazil of the company’s patented dual-activity technology on the Petrobras 10000.
5----More Gas Find Beneath UK Shetland
Total has confirmed that its Glendronach exploration well west of Shetland in UK waters has discovered gas.
The well was drilled in around 300 m (984 ft) water depth on block 206/04a, to a final depth of 4,312 m (14,147 ft), in a formation below the producing Edradour reservoir.
It encountered 42 m (138 ft) of net pay of gas. Initial analysis has confirmed a good-quality (Lower Cretaceous) reservoir, permeability and production deliverability, with recoverable resources estimated at around 1 tcf.
Total believes the find could be developed quickly with the existing infrastructure around the Edradour field and the Laggan-Tormore pipeline system, which is connected to the Shetland Gas Plant.
“Glendronach is a significant discovery for Total which gives us access to additional gas resources in one of our core areas and validates our exploration strategy,” said Arnaud Breuillac, president Exploration & Production.
Other partners are Ineos E&P UK and SSE E&P UK.
Total also operates the Culzean gas field development in the UK central North Sea, due to start up next year.