Arco signs for 2nd Burma Block
On 23 May, Arco signed a PSC for offshore Burma Block M-7 in the Gulf of Martaban, its second operated tract in the country. A US$7 million signature bonus was believed to be involved for the 13,373 sq km block, which was previously licensed to Cities Service in the 1970s. Cities drilled two wells in the block, the second of which, M-7-2, flowed 18.47 million cf/d gas from a Miocene reservoir in 1975. Arco is committed to acquiring new seismic data and drilling at least one well during the initial three-year exploration phase.
Enterprise's Cambodia wildcat plugged
In Block 1 in the Khmer Trough, Enterprise's Da-1 wildcat was plugged and abandoned about 22 May at a TD of 3,923 meters. The well, which was spudded on 23 March using Canadian Marine's Canmar Explorer III, is believed to have intersected approximately 20 meters of gas pay but was not tested due to the apparent small size of the structure. The cost of the well was in the region of $10 million. Following this, the rig immediately relocated to Block 2 where it spudded wildcat Preah Khan-1 on 24 May.
Mobil has farmed into two Triton China PSCAs
Mobil has farmed-in for 50% of Triton's two Pearl River Mouth Basin PSCAs 16/22 and 16/03, in separate deals that took place on April 16 and 23 respectively. In PSCA 16/22, wildcat HZ23-2-1 was spudded on 30 April and is now logging at a TD of 4,500 meters. Mobil has agreed to pay a disproportionate amount of the well's costs as part of the farm-in agreement.
CONHW has been active in the Yinggehai Basin, drilling two shallow water wildcats. YX32-1-1 was plugged and abandoned on 20 May at a TD of 680 meters after spudding on 12 May using the Nanhai-4 jackup; the rig was then moved approximately 120 km northwest to spud LT 9-1-1 on 23 May. This is now logging at a depth of 1,110 meters in the Meishan Formation.
Manila Bay wildcat plugged and abandoned
In GSEC 72, in the southeastern Luzon Basin, Cophil's high profile Manila Bay-2 wildcat has been plugged and abandoned after three DSTs in the Miocene-Pliocene section recovered only a maximum of 0.11 million cf/d gas and 6,400 b/d water. Operations at the wellsite were concluded on 3 June. The well was a re-drill of Manila Bay-1A (ST) which was abandoned with gas shows in September 1995 after numerous mechanical problems were encountered.
Cakerawala-2 tested, Cakerawala-3 drilling
CTOC's Cakerawala-2 appraisal well in MTJDA Block A-18 has flowed a cumulative 31 million cf/d gas plus 576 b/d liquids (31-53 API) through various choke sizes, from four intervals between 1,178 and 2,926 meters. The well was spudded on 9 March using Atwood's Falcon semisubmersible in 57 meters of water and was drilled to a TD of 2,941 meters. A sceond appraisal of the Cakerawala discovery, Cakerawala-3, has now reached a TD of 2,991 meters and will soon be tested.
Thai 15th Round awards two major offshore blocks
The DMR has announced that nine consortia have bid in the 15th Thai Licensing Round, which closed on 30 May, including two awards of offshore blocks. Soco was awarded the 9,580 sq km Block B8/38 in the Gulf of Thailand, while a Dragon/Esso/ Unocal/Texaco group signed for Block B11/38, also in the Gulf. The response to the round as a whole is largely viewed as disappointing for the Thais, but is certainly an improvement over the 13th Round, when only one bid was received.
Vietnam Block B goes to Unocal
On 28 May, Unocal was awarded Block B in the Malay Basin under Production Sharing terms. Unocal (45%, operator) is partnered by Mitsui (25%) and Repsol (25%) in the tract, which covers approximately 5,560 sq km in 70 meters of water in the northern Malay Basin. A five-year exploration period will apply, comprised of three phases of three, plus one plus one years in which 4,000 km of 2D seismic and two wildcats are required in the first phase. Under the terms of the PSC, a clause for the sale of gas is included, the first for an offshore block, as far as is known. A US$2 million signature bonus was paid by Unocal and a similar figure will be payable in the event of a commercial discovery. First drilling is expected to commense in 1997.
Copyright 1996 Offshore. All Rights Reserved.