Newfield hits pay in Pearl River Mouth basin

The LF 7-1 well on block 16/05 in the Pearl River Mouth basin has tested a single zone at 6,000 b/d of oil (35° API gravity oil), according to Newfield Exploration Co.

Offshore staff

HOUSTON -- The LF 7-1 well on block 16/05 in the Pearl River Mouth basin has tested a single zone at 6,000 b/d of oil (35° API gravity oil), according to Newfield Exploration Co.

The offshore China well was drilled to a total depth of nearly 10,000 ft (3,048 m) and encountered more than 75 m (250 ft) of high-quality oil pay in multiple sands, the company reports. The well was drilled to test a downthrown anticline and was an offset to Newfield's LF 7-2 discovery. The LF 7-1 well has set up a deeper oil prospect within the same fault trap, which the company may test in 2010 through a down-dip sidetrack.

In 2007, Newfield acquired 200 sq km (77 sq mi) of new 3D seismic data to better assess the structural complex. According to the company, there are numerous independent untested structures identified on the 3D survey analogous to the discovery. The LF 7-6 structure, located 15 km (9 mi) to the northeast, is planned for drilling in 2010.

“Our two successes on block 16/05 confirm that we have a commercial oil development with considerable running room,” says William Schneider, Newfield's VP - Onshore Gulf Coast and International. "We estimate that the gross reserves associated with our two discoveries to date are in excess of 30 MMbbl.”

In other company news, Newfield plans to accelerate its "Phase II" development of the East Belumut oil field offshore Malaysia by six months. The company will invest $18 million (net) to drill three development wells later this year from its existing production platform. An additional $18 million will be invested in early 2010 to drill three additional development wells. It is estimated that the six-well drilling campaign will increase 2010 oil production by an additional 1 MMbbl (net).

09/10/2009

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