Exploration news
Latest exploration news
Commencement of Libya aeromagnetic survey
A large aeromagnetic survey of northern Libya has begin. The project is being undertaken by TGS-NOPEC Geophysical company on behalf of several companies, AGESCO, and NAGECO under an agreement with the NOC. Aquired both off and onshore in several phases, the survey will eventually cover all petroliferous basins in Libya. Initial data collection is expected to take in the order of 6 months.
March 2008 First break: www.firstbreak.org
3rd NOC Libya bidding round commences
The National Oil Corporation (NOC) invites all international E & P companies to participate in the third bidding round (the Bidding Process) for the award of certain Exploration and Production Sharing Agreements (EPSA) covering the following areas:
Basin |
Area # |
Block # |
Available Acreage (km2) |
Offshore |
19 |
1+2+3+4 |
10,288 |
20 |
1+2+3+4 |
10,294 |
|
43 |
1+2+3+4 |
7,449 |
|
Sirt |
69 |
1+2+3+4 |
8,114 |
137 |
3+4 |
5,440 |
|
Ghadames |
82 |
1 |
2,704 |
98 |
2+4 |
5,218 |
|
Murzuq |
162 |
1+2 |
3,757 |
113 |
3+4 |
5,494 |
|
Kufra |
196 |
2+4 |
5,763 |
201 |
1+2+3+4 |
11,566 |
|
Cyrenaica |
57 |
1+2+3+4 |
9,508 |
59 |
1+2 |
5,327 |
|
77 |
1+2+3+4 |
9,508 |
|
Total |
14 |
41 |
99,437 |
Details of the acreage and organisation can be found via the following link
BG to Join Gulf Keystone and SONATRACH as a Strategic Partner in Hassi Ba Hamou Perimeter, Algeria
Gulf Keystone Petroleum Limited, an independent oil and gas exploration company operating in the Republic of Algeria, today announces a major expansion of its exploration and appraisal activities, in partnership with SONATRACH, within Algeria and the introduction of BG North Sea Holdings Limited (BG), a subsidiary of BG Group Plc, as strategic partner in the Hassi Ba Hamou Perimeter exploration, appraisal and exploitation contract (HBH).
Gulf Keystone and its partner SONATRACH, the Algerian state oil company, have signed an agreement with BG under which BG will be introduced as a partner in the HBH Perimeter, onshore Algeria. In addition, agreement has been reached by all parties on a significant expansion of the planned exploration and appraisal activities on HBH.
HBH was awarded to Gulf Keystone in April 2005, following the 6th International Licensing Round, with the HBH Contract becoming effective in September 2005. HBH covers 18,380 km2 in the Allal Dome area of Central Algeria, a gas prone area that includes the Hassi Ba Hamou gas discovery and a number of leads and prospects.
On the basis of a subsequent full technical and economic review of the area, SONATRACH and Gulf Keystone have identified a significant potential gas resource base within the HBH Perimeter. As a consequence, SONATRACH and Gulf Keystone have concluded that a materially increased work programme will be required to fully evaluate its potential. The work programme that the partnership, Gulf Keystone, SONATRACH and BG, have now therefore committed to carry out during the first exploration and appraisal phase of the HBH Contract will include the acquisition of 2,000 kms of 2D seismic, 500 km2 of 3D seismic, and the drilling of at least six exploration and appraisal wells.
Under the agreement, BG will acquire 49% of Gulf Keystone™ interest in HBH and assume the role of Operator. Following completion of this transaction, which is conditional upon the final approval of the relevant Algerian authorities (Completion), Gulf Keystone will hold a 38.25% interest, BG a 36.75% interest and SONATRACH a 25% interest in HBH.
Gulf Keystone and BG have additionally agreed to study the potential for further co-operation with respect to gas exploration, appraisal and development projects within Algeria. The commercial terms of this transaction are required to be kept confidential. Mr. Bill Guest, President of Gulf Keystone, commented:
This is a strategically important transaction for Gulf Keystone. We are delighted that BG is joining SONATRACH and Gulf Keystone as a partner in this highly prospective area, the comprehensive evaluation of which we will now be able to accelerate. BG brings a highly complementary technical and operational expertise and is firmly focussed on the rapid commercialisation of gas from this and potentially other concession areas within Algeria. Completion of this transaction will place the Company in a strong position to further develop its business.
www.rigzone.com/news, July 2006
Total Announces First Oil Discovery in Libya’s Block NC 191
Total (operator, 100%) announces an oil discovery in Block NC 191 in southwestern Libya, around 800 kilometres south of Tripoli. This is the first find in the block, located in the southern Murzuq Basin and awarded to Total in March 2001.
Drilled to a total depth of 1,735 metres, the D1 well tested at 675 barrels of oil per day. Appraisal of the discovery and the potential of the remainder of the block is underway.
The latest find consolidates Total™s position in Libya, where it has been active since the 1950s. The Group has interests in the main offshore and onshore basins, operating the offshore Al Jurf field and the Mabruk field in the Sirte Basin and holding a working interest in the consortium that operates the El Sharara fields in the Murzuq Basin.
www.rigzone.com/news, July 2006
Woodside Group Spuds Colin Well
Roc Oil has today advised that the second half 2006 Mauritania drilling program has started with the Atwood Hunter drill rig commencing drilling the Woodside-operated Colin-1 exploration well in PSC Area A on 21 July 2006. The well in a water depth of 168 metres will drill to a planned total depth of 2,320 metres.
At midnight local time on 23 July 2006, Colin-1 had been drilled to a depth of 254.5 metres and the current operation was preparing to drill ahead.
On completion of the Colin-1 exploration well the Atwood Hunter will drill the Dana operated exploration wells Flamant-1 in Block 8 and Aigrette-1 in Block 7. Further Woodside operated exploration wells are still being considered.
The PSC Area A participants are Woodside group 53.846% operator, Hardman group 24.3%, BG group 13.084%, Roc Oil group 4.155% and Fusion group 4.615%.
www.rigzone.com/news, July 2006
Contract Signed For Hydro's First Operating License in Libya
On 2 July Geofizyka Krakow and Hydro signed a contract for 1000 kilometers of 2-D seismic acqusition in Area 146, Hydro's first operating license in Libya.
Hydro signed the contract for Area 146 with the National Oil Cooperation(NOC) of Libya in December last year. This acqusition is part of Hydro's committed work program for the license, which also includes the drilling of two wells. Hydro has a 100 percent paying interest for exploration activities during the first exploration period. Mobilization for the operations is scheduled to take place on 8 November this year.
Area 146 is located in the Murzuk Basin approximately 900 kilometers south of Tripoli, not far from the Chad border with Libya. The area is also located close to License 186, which has seen significant exploration success in recent years.
Hydro is a partner in this license together with Total and OMV, while the Operator is Repsol.
www.rigzone.com/news, July 2006
Libya Expects Strong Output Growth Through 2010
Libya plans to boost its oil output to 2 million barrels per day (b/d) in 2007, rising to 3 million b/d in 2010, from its current production of about 1.6 million b/d, according to Shukri Ghanem Said, chairman of state-owned National Oil Co. (NOC).
The boost in production is expected to be fuelled in the short term by modern and more effective extraction infrastructure at existing fields and in
the mid-long term with new exploration and production (E&P) contracts auctioned through Libya's awaited third licensing round.
Ghanem noted that the third licensing round of oil exploration blocks is expected to be announced "sometime around September, and in three-four months the blocks will be assigned."
"We are currently deciding the blocks to be offered," he said, adding that the blocks will be awarded through a "free bidding process" and not through directly negotiated agreements.
Libya offers great potential for new oil strikes because only about 25 percent of its oil and gas acreage is covered by exploration licences and most of the country has not been explored using modern techniques.
Analysts expect the country to offer more than 100 new areas containing at least 360 blocks in the next few years.
"Currently our proven reserves stand at about 38-40 billion barrels, but we have the potential to at least double that figure," said a high-ranking NOC official and aide to Ghanem.
After being held back by U.N. and U.S. oil sanctions since the 1980s, Libya's production is set to increase thanks to the lifting of these embargoes in 2003 and 2004. Many U.S. companies that operated in the country before the sanctions have since returned.
"Companies are returning to Libya and we are increasing production," Gharem said.
He noted, however, that while "the problems have been solved with the U.S. and its companies are very interested in working in Libya...we will give no special preference to particular companies (in the third licensing round)... neither to the U.S. nor to any other country."
The NOC chairman added that the contracts awarded will be maintained and the terms of the agreements could improve on the conditions agreed with companies in the last two rounds.
Analysts have said that previous Exploration and Production Sharing Agreements (EPSA) in the previous rounds left the winning companies with little margin in terms of the production and profits they retain.
www.rigzone.com/news, June 2006
Centurion Energy Moving Forward with Egyptian Exploration
Centurion Energy International says that the Luzi-1 exploration well (Centurion 50%, Shell 50%) has been spudded in the West El Manzala Concession, targeting a prospect on trend with the existing El Wastani field.
During early drilling, the well encountered gas in the El Wastani formation at a depth of 1009 meters, indicating that this formation is a potential reservoir target in this area of the concession. The interval is being evaluated with open hole logs and the well will then drill ahead to test the potential in the deeper primary exploration target formations, the Abu Madi and Qawasim.
Additional exploration wells are now planned on the eastern side of the West El Manzala Concession, on the same type of geologic trend as the Luzi-1 well. Subsequently, in the autumn, exploration drilling will recommence in the western area of the Concession to test the deeper high pressure Lower Qawasim and Sidi Salim formations.
Concurrent with the exploration activity, the original El Wastani-2 development well has been successfully sidetracked and deepened to test the Lower Abu Madi and Qawasim formations. The well encountered a reservoir interval at a depth of 2731 meters and found 66 meters of net pay. Initially, the top section of the Qawasim has been perforated and on test, the well flowed at a rate of 10 mmcf/d with over 170 bpd of condensate. The well has now been tied back for production.
The El Wastani-13 development well is currently drilling ahead at a depth of 2970 meters in the Qawasim formation and good gas shows have been encountered in the Lower Abu Madi and Qawasim sections drilled so far.
The company's current Egyptian production rate is approximately 34,000 boepd. Centurion will be limited to this facility constrained production rate until year end 2006 when the El Wastani Central Processing Facilities upgrade should be completed. Upon completion of the facility upgrade, production is expected to increase to over 38,000 boepd.
www.rigzone.com/news, June 2006
Plectrum Takes Stake in Nabeul Block Offshore Tunisia
Plectrum Petroleum, has agreed, subject to the approval of the Tunisian authorities, to purchase 90 percent of REAP Tunisia GmbH and thereby acquire a 50% interest and operatorship of the Nabeul Block, offshore Tunisia. This proven petroleum province is a location well suited for the adoption of Plectrum's strategy of de-risking deepwater exploration prospects through implementing newly emerging technologies such as electo-magnetic imaging techniques.
The Nabeul Block is located in the Gulf of Hammamet, adjacent to existing oil producing concessions, in water depths of 250-800m. The Block covers 3352 km(2) (equivalent to 13 North Sea Blocks) and the initial Prospection Permit phase runs until 24th January 2008. Three further exploration periods of up to 5 years each are also available. The proposed work program includes the reprocessing of existing seismic data, the acquisition of a conventional modern 2D seismic grid and modelling to confirm the suitability of Electro Magnetic (EM) imaging and Marine Magnetotelluric (MMT) in the Block.
Final completion of the transaction is subject to the approval of the Tunisian authorities. Upon completion Plectrum will have a 50 per cent. working interest as operator. Entreprise Tunisienne d'Activites Petrolieres ("ETAP"), the Tunisian Oil and Gas government company, has the other 50 percent. interest.
Mike Whyatt, Plectrum's Executive Chairman, commented:
"I am delighted to announce this important strategic addition to our portfolio of assets where we believe the application of innovative new exploration techniques can significantly enhance pre-drilling resource assessments.
The acquisition of this highly prospective North African exploration acreage demonstrates the viability of the Company's business model of identifying attractive frontier exploration opportunities. Several prospective structures have already been identified in the Birsa sand fairway play in the Block that are capable of trapping oil volumes in excess of 100 mmboe. In due course our goal will be to better define these potential volumes prior to committing to an exploration well.
We look forward to working with ETAP and using this acquisition as a platform for further expansion in this exciting, proven petroleum province."
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www.rigzone.com/news, June 2006
Anadarko Takes Stake in Eurogas' Sfax Exploration Permit Offshore Tunisia
Eurogas and Atlas Petroleum Exploration Worldwide have entered into a Farmout Option Agreement with Anadarko Petroleum for exploration on most of the Sfax Offshore Exploration Permit located offshore Tunisia in the Gulf of Gabes. Eurogas and APEX currently hold 45 and 55 percent working interests, respectively, in the Sfax Permit.
Under terms of the new multi-phase agreement, Anadarko has committed to acquire, process and interpret a transition-zone 3-D seismic program covering a 420-square-kilometer
Eurogas is pleased to be working with Anadarko as the company has a history of exploration success in the region and intends to bring its expertise to bear in evaluating the high potential of the Reineche, El Garia and Bireno hydrocarbon fairways running through the Sfax Offshore Permit by beginning the seismic acquisition program in mid-2006.
Specifically excluded from the Agreement are three areas covering a total of 50,400 acres surrounding three prior oil discoveries (Ras El Besh, Jawhara and Salloum) that are deemed by Eurogas and its operating partner to be commercially highly prospective. They will jointly retain a 100% working interest. Eurogas and APEX will continue to focus on evaluation of the retained areas, recognizing that they are of lower risk as each contains a prior discovery that tested oil from an accumulation in either the El Garia or Bireno formations.
Eurogas and APEX continue their plans to drill a well on the 1997 Ras El Besh discovery. The REB 2 well, drilled by a previous operator, tested oil from the El Garia carbonate formation. Based on interpretation of the 2004 three dimensional seismic survey acquired by the two partners, the REB 3 well will test the crest of the Ras el Besh structure in a location that is anticipated to have up to 40 meters of pay. The REB 3 well is planned to be drilled in the later part of 2006, pending rig availability.
The Sfax permit is located on a hydrocarbon fairway that trends from offshore Libya, through the Gulf of Gabes, to onshore Tunisia and is surrounded by producing fields to the west, north and east that hold reserves estimated in excess of 1 billion barrels of oil equivalent.
Eurogas Corporation is an independent oil and gas exploration company listed on the TSX Venture Exchange under the symbol EUG and is engaged in exploration and development activities in Spain and Tunisia.
www.rigzone.com/news, May 2006