In Different Information Within the Sector
This week, Gulf Keystone Petroleum (LON:GKP) and Providence Assets (LON:PVR) provided investors with updates from their keenly adopted exploration campaigns in the Celtic Sea and Iraqi Kurdistan.
Early in the week, Gulf Keystone Petroleum described the latest from the Shaikan-4 well as “excellent” as exams continued on the appraisal properly within the Kurdistan region of Northern Iraq.
The data appears to support chief operating officer John Gerstenlauer’s earlier contention that Shaikan-4 could be GKP’s greatest properly to this point in Kurdistan.
The Kurre Chine, Butmah, Mus, Alan and Sargelu formations flowed at 14,000 barrels of oil equal a day in aggregate.
Presumably more interesting are the results of the sixth and newest take a look at to oil and gas production in colorado evaluate the potential of the “hanging wall”, or upper side of the inclined fault bounding the Shaikan structure.
Specifically GKP tapped a brand new reservoir in the uppermost Sargelu formation which had not been beforehand circulation examined. Whereas this test is ongoing, charges in excess of four,000 barrels of oil a day have been recorded.
Gerstenlauer mentioned: “We imagine that these new outcomes of the continued Shaikan-four properly testing programme are excellent, confirming our early understanding that this well could prove to be our best one up to now within the Kurdistan Region of Iraq.
“We anticipate that future check production from Shaikan-four will considerably enhance our present production degree, which reached 6,970 gross barrels of oil per day on 4 March 2012.”
Three days later, Providence Resources weighed in with considerably better than expected drilling results from its appraisal nicely on the Barryroe Field in Ireland’s Celtic Sea.
The well flowed three,514 barrels of highly mobile mild candy crude a day, or the equal of 4,000 barrels if fuel is included.
This is greater than double the 1,800 barrel figure deemed to make the sphere economic.
Providence is the operator of the field with 80 per cent, whereas Lansdowne Oil & Fuel (LON:LGOP) has the remaining 20 per cent.
The outcomes mean Barryroe has delivered the primary ever commercial circulation charges from an offshore block in Ireland.
Providence chief government Tony O’Reilly mentioned: “We are happy to report circulate rates of three,514 barrels of oil a day, which materially exceed our said pre-drill target of 1,800 barrels.
“The properly has additionally confirmed that the basal sands are laterally steady, extremely productive and that the oils are of a really top quality.
“Our comprehensive wire-line logging programme has revealed the seismic signature of the basal sands and can due to this fact be used to map these intervals straight within the 3D seismic quantity for area volumetric determinations and sidetrack well planning.”
On the identical day, Vary Sources (LON:RRL) revealed that its revenues soared in its latest half-year as the group ramped up its operation in the Caribbean.
Revenues rose to US$12.Eight million from US$1.1 million, though internet losses were little changed at US$2.2 million after heavy drilling Oil Refining Equipment prices. Gross producton for the half was just shy of 150,000 barrels of oil and 827 mcf of gas.
Vary added it had drilled one other three wells on its Trinidad acreage since the tip of December, which had elevated output to about 750 barrels of oil per day.
Vary is in the course of an extensive drilling campaign in Trinidad and stated the number of rigs operating on its onshore licences will double during March and April when one other two rigs be part of up.
The remaining two firm rigs will even start work towards the tip of June and it will mean a significant ramp up in drilling exercise and production.
Vary added that work is nearing completion on the reprocessing of its 3D seismic database in Trinidad.
In the meantime, sector peer Bluebird Vitality (LON:BBE), which is concentrated on the US, mentioned it is considering a plan to return excess cash to buyers.
It’s a part of a broader programme that may see the group cut back bills and “maximise the worth of its asset base”.
The announcement came as the group unveiled a US$2.05 million loss for the six months ended December 31.
During the interval Bluebird bought its 50 per cent stake in the Centurion Discipline in the US for US$three.1 million. It’s at present in search of a farm-in associate for the Solitaire project in Kit Carson County, Colorado.
“The interim period for Bluebird has been combined,” said chairman James Ede-Golightly.
“The firm recorded a loss because of administrative bills and project costs at Centurion, partially offset by a gain in the worth of the holding in Wessex Exploration.
“Changes in the company’s focus following the disposal of its 50 per cent curiosity in Centurion have subsequently been mirrored in the board composition and corporate technique.
“The precedence is now on consolidating shareholder value by means of a big discount in administrative costs whereas in search of to maximise the potential value of the remaining US assets in an otherwise weak environment for gasoline exploration properties in the area.”
In different news within the sector, Enegi Oil (LON:ENEG) has formalised its partnership with Superior Buoy Technology, whereas Transeuro Power (CVE:TSU) informed investors on Friday that it has restarted rig operations on the Karlavskoye-a hundred and one well in Ukraine.
Enegi Oil and Advanced Buoy Technology at the moment are assessing alternatives in the UK North Sea.
The companions intend to use for belongings in the Division of Power and Local weather Change’s 27th Seaward Licensing Round.
They’re concentrating on discovered oil fields that aren’t deemed to be commercial for growth using standard expertise however are technically suitable for unmmanned manufacturing technology.
“The strategic partnership with ABT opens up an asset class that we believe has vital potential,” Enegi director David Parry said.
ABT’s has developed buoy expertise that can be installed for unmanned oil and gas production amenities, which are believed to tremendously scale back the costs of creating marginal oilfields.
To assist roll out this technology ABT has a strategic partnership with FTSE one hundred listed oil companies firm Wood Group, to commercialise and ensure deliverability of unmanned buoy technology.
Meanwhile, Transeuro will re-enter the effectively and drill out three momentary plugs that have been put in to suspend the properly in Might final 12 months, it stated. Drilling is anticipated to last between two and three weeks.
It can then install the hydraulic fracturing equipment.
Transeuro’s contractor Schlumberger is probably going to start pumping operations in April, it mentioned.
The plan is to create individual hydraulic “propped” fractures in each of the 5 reservoir intervals in the well, using 1,000 cubic metres of water and placing a complete of 300 tons of synthetic proppant into the reservoirs.
Transeuro says the reservoir intervals flowed a cumulative stable rate of 16,000 cubic metres a day and condensate throughout testing final year.
Max Petroleum (LON:MXP) also had information to report back to buyers this week. The Kazakhstan operating oil group announced it has acquired Kazakh authorities approval to transform the Zhana Makat subject to full subject development (FFD) standing with immediate impact.
The explorer said the FFD approval will enable it to develop, and produce from, the sector for as much as a further 25 years, in addition to grant the right to promote eighty per cent of crude oil production from Zhana Makat on the export market underneath the phrases of its Blocks A&E exploration and production contract.
Max stated present export oil oil and gas production in colorado gross sales are producing internet proceeds per barrel which might be approximately US$22-US$25 higher than comparable home sales. Zhana Makat is at the moment producing roughly 2,100 barrels of oil per day.