(Brazil)-Kerr-McGee reported a successful test in the BM-C-7 block (Campos Basin) of the Chinook field offshore Brazil. The 3-ENC-3-RJS appraisal well, evaluated jointly by Kerr-McGee and EnCana, reached total depth of 7,650 ft and encountered approximately 110 ft of net pay in the Cretaceous Carapebus formation. The appraisal well tested at rates between 1,400 and 1,800 b/d of 14° API crude during the 72-hour test period, but initial analysis of the test data suggests that the vertical well is actually capable of producing at rates of between 4,000 and 5,000 b/d with optimized production equipment.
Kerr-McGee Chief Operating Officer Dave Hager commented that, "This test confirms the high-quality reservoir in this world-class petroleum province. We plan to immediately drill another vertical appraisal well, updip, approximately 1.5 mi to the northeast of the discovery well, and then consider the potential development scenarios."
From initial data on a discovery well drilled in April 2004 coupled with this test on the appraisal well, Kerr-McGee estimates the Chinook field offers potential resources in the range of 100 - 200 MMbbl of oil. Kerr-McGee owns a 50% working interest in the 133,000-acre BM-C-7 block located in approximately 350 ft of water, approximately 125 mi southeast of Rio de Janeiro. EnCanBrasil, a subsidiary of EnCana Corp., holds the remaining 50% working interest and is the operator of the block.
Kerr-McGee expects to drill up to eight wells during the next four years in the Campos and Espirito Santo Basins offshore Brazil, with identified targets each carrying an estimated resource potential in the range of 100 - 400 MMbbl of oil.