Monday brought news of a major new discovery offshore UK, with Total unearthing an estimated one trillion cubic feet gas find in the West of Shetland region.
Total’s Glendronach exploration well has encountered a 42-metre net gas column, in what is described as a high-quality reservoir.
The French petroleum major has a 60% stake in the project alongside Grangemouth refinery owner INEOS and UK utility SSE which each hold 20%.
“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, Total president for exploration and production.
Tullow draws a blank offshore Namibia
It was not such good news for Tullow Oil plc (LON:TLW) which, on the same day, revealed that its exploration programme offshore Namibia has got off to a negative start, with the Cormorant-1 failing to find commercial volumes of hydrocarbons.
The company, in a statement, revealed that the well was sunk to 3,855 metres and encountered its primary target but it was found to be water bearing. ‘Wet gas’ signatures, a potential indicator of an oil presence, were observed in an overlying shale section.
"The Cormorant-1 frontier exploration well was a bold attempt to open a new oil play in this area of Tullow's offshore Namibia acreage,” said Angus McCoss, Tullow exploration director.
“Gas readings while drilling continue to support the concept that there is a working oil system in the area. As a result, following the conclusion of operations, we will analyse the data gathered before deciding on any future activity.
“While this is not the outcome that we had hoped for, the efficiency of our drilling and our risk management processes resulted in low financial exposure to this well."
Chariot well is next on the docket
Attentions now turn elsewhere offshore Namibia, and, on Friday, Chariot Oil & Gas Plc (LON:CHAR) announced that it is up next, with the deep-water drillship is due to arrive at the Prospect S location within 24 hours.
Spudding is anticipated shortly afterwards, and, thereafter it is expected to be a 40 day programme.
Chariot holds a 65% interest in the well, which is estimated to be host to up to 459mln barrels of oil with a probability of geological success of 29%.
Yet more eyes on Namibia
Eco Atlantic Oil & Gas Ltd (LON:ECO, TSE:EOG) told investors that it now has a final Environmental Clearance Certificate for the proposed exploration well on the Cooper block, offshore Namibia. It sets the company and its partners - Tullow Oil plc (LON:TLW), Azinam, and NAMCOR - for the drilling of the Osprey target which is seen as a potential 882mln barrel target.
Work continues to pin down a precise drilling location, and, the actual drill programme is anticipated in the third quarter of 2019 or the first quarter of 2020.
United investors countdown to Colter
Closer to home, a rig contract has now been pinned down for the Colter well off England’s south coast, and, attentions are United Oil & Gas Plc (LON:UOG) which is one of the stakeholders in the exploration venture located in the vicinity of Wytch Farm.
With the contract now signed, drilling operations can get underway as planned in the fourth quarter of this year.
Colter was discovered in 1986 by well 98/11-3 which encountered a 10.5 metre oil column in the Sherwood Sandstone. The well will be drilled in an area updip of the existing discovery, targeting gross unrisked mid-case volumes of over 19mln barrels of recoverable oil.
Drilling starts for Cadogan
Cadogan Petroleum PLC (LON:CAD) told investors that drilling operations have begun for the shallow Vovche-2 well on the Bitlyanska licence. The programme is due to last for 20 days and, if successful, the well will be put on production.
In the meantime, the company is selecting a heavier rig to drill the Blazh-10 well on the Monastyretska licence as planned. Such a well will target the Yamna sandstones, which is host to three times currently producing wells.
At Monastyretska, the drilling is expected to start in November and the programme will take three months to drill.
Block inks rig contract
Block Energy Plc (LON:BLOE) has hired a rig deal for a multi-well programme planned across its asset base in Georgia.
The arrangement with Georgian firm JSC Norio Oil Company provides unlimited and exclusive access to two A50 workover rigs and a ZJ40 drilling rig, along with access to a variety of other drilling and workover related equipment. It is a six-month contract, with an option to extend for a further six months.
The company anticipates that the first rig will be mobilised within the next few days, in order to commence the scheduled work. The programme aims to rapidly increase production across Block Energy's licence base up to 900 barrels of oil per day within 24 months.
Big footprints in Alaska
88 Energy Ltd (LON:88E) has expanded its footprint on Alaska’s North Slope, securing additional areas of interest for the group’s planned conventional exploration campaign. In total it has added 45,239 net acres, increasing the explorer’s overall position to 371,478 acres.
The increase comes via two separate agreements. First, the Arctic Slope Regional Corporation (ASRC) releasing rights to 28,453 acres, contiguous with the company’s Western Fairway area of the current Project Icewine acreage.
In a separate agreement, the company will acquire a 69.1% interest in 24,269 acres (16,786 acres net to 88 Energy’s Accumulate subsidiary) adjacent to, and north of, the Central Play Fairway at Project Icewine. It will pay US$206,388 to acquire the position.
Aminex farm-out deal set to close in coming weeks
Tanzania-focused Aminex plc (LON:AEX) has confirmed its gas farm-out deal with an Omani industrial group is set to close by the end of November. The update was provided alongside interim results, which showed the group was sitting on US$2.65mln at June 30.
This should be augmented with US$5mln, paid in two tranches, from the Zubair Corporation, which will develop the company’s Ntorya offshore asset, host to a ‘contingent’ 763bn cubic feet of gas.
The Zubair transaction, inked in July, will see Aminex ‘carried’ on a host of work. This will include the drilling, completion, and testing of the Chikumbi-1 well; a 3D seismic data survey over 200-square kilometres within the Ntorya project area; and the establishment of an early production system to achieve first gas at Ntorya to a rate of 40mln cubic feet of gas per day.
Aminex chief executive Jay Bhattacherjee described the tie-up as an “advantageous way to accelerate development and generate material cashflow from Ntorya”.