Asia-Pacific seismic activity at full speed

Katandra prospect offshore Australia in the Timor Sea.

Avery says the Katandra discovery well is analogous to and lies on strike with the Jabiru oil field 28 km (17 mi) southwest. Jabiru has produced more than 100 MMbbl of oil to date. The discovery well in 100 m (328 ft) of water was drilled to 1,450 m (4,757 ft) and encountered 7 m (23 ft) of light, sweet crude oil.

“The aim of the 3D seismic survey is to locate a well that would establish commerciality. Katandra could be the jewel in Avery’s crown,”says David Little, chairman and CEO. “We have been awaiting this seismic study for some time and we are very excited to have it under way. Katandra’s potential is significant.”

Bass Strait Oil Co. has begun a seismic survey in Gippsland basin permit VIC/P42 withWestern Trident is The 3D survey covered 503 sq km (194 sq mi). The seismic survey is the first phase of a farm-in by Apache Northwest Pty. Ltd. who also will be the operator. The second phase includes drilling an exploration well to earn 50% interest. Bass and Inpex would then hold 20% each.

AWE Ltd. has committed to a major program of offshore exploration in a bid to increase its capacity to supply gas to the growing southeast Australian energy market. AWE and its co-venturers in the offshore Bass and Otway basins produce the equivalent of around 30% of Victoria’s daily gas needs, but aim to expand production capacity.

In the last three years, AWE and its co-venturers have made three gas discoveries in the Henry and Martha fields in the Otway basin and in the Trefoil field in the Bass basin. They have also carried out 2D and 3D seismic surveys. The company is planning to drill exploration wells on the Netherby and Pecten East prospects in 2007.

The 3D seismic surveys over the Timor Sea Katandra prospect in the north and the Gippsland basin permit VIC/P42 in the southeast are precursors to increased exploration drilling in the two areas.

The partners planned a 3D seismic survey in permit Vic/P 44 in the offshore Otway basin. It is expected to lead to the development of prospects and leads, which could add to the natural gas inventory of the region, AWE says.

The 700-sq-km (270-sq-mi), Otway 3D seismic survey will adjoin an earlier 3D survey over the Pecten High trend that incorporates the Casino, Henry, and Martha gas fields. The new survey will cover the Champion High trend, which includes the Champion South prospect and several adjacent prospects and leads.

“The Bass and Otway basin acreage held by AWE has potential for significant additional gas reserves,” says Bruce Phillips, AWE managing director. “To date AWE has a 100% success rate in its offshore Otway basin drilling program, and we are optimistic about the upcoming exploration drilling on the Netherby and Pecten East prospects later in 2007.

“The new 3D seismic survey is designed to delineate additional drilling prospects and extend the gas fairway to the west of the existing Casino, Henry, and Martha gas fields.

“In the Bass basin, AWE sees potential for gas developments beyond the first stage of the BassGas project, where the Yolla oil and gas field is currently producing. AWE and its co-venturers have recently delineated the nearby Trefoil gas and condensate field with a large 3D seismic survey, and conceptual development studies for the field are under way,” Phillips says.

Origin Energy operates the BassGas project with 42.5% interest. Partners include AWE with 30% interest, Wandoo Petroleum with 12.5% interest, and CalEnergy with 15% interest.

Origin also operates the Trefoil field with 46.4% interest. Partners include AWE with 22.6% interest, Wandoo Petroleum with 12.5% interest, and CalEnergy with 18.5%.

Santos Ltd. operates the Casino project with 50% interest. Partners include AWE with 25% interest and Mittwell Energy Resources Pty. Ltd. with 25% interest.

China

Texas American Resources - Asia Ltd. did a 3D seismic survey over the Panyu prospect area of PSC 28/20 covering 850 sq km (328 sq mi) in the Pearl River Mouth basin of the South China Sea. China Offshore Services used theMV Dongfangmingzhu seismic vessel. Production shooting began Aug. 1, with completion expected by Nov. 1

Texas American Resources - Asia Ltd. holds two blocks in the Pearl River area, making TARA the first privately-held company to have assets in the South China Sea. In total, TARA’s offshore blocks encompass approximately 4.5 million acres (18,211 sq km).

Primeline Energy Holdings Inc. has completed a 550 sq km (212 sq mi) 3D survey in block 25/34 of the East China Sea. Data was merged with an existing 233 sq km (90 sq mi) 3D survey. Further definition of the Lishui 36-1 gas discovery and adjacent prospects was the survey target. Primeline plans to drill one or two wells in Lishui with the locations based on the seismic results. Primeline owns a 75% interest in block 25/34 with China National Offshore Oil Corp. Primeline is the operator.

China National Offshore Oil Corp. (CNOOC) has signed a Production Sharing Contract with Singapore Petroleum Co. Ltd. for block 26/18 in Pearl River Mouth basin. The block covers 4,961 sq km (1,915 sq mi), with water depth of 85 - 200 m (279-656 ft). Under the terms of the contract, SPC will conduct 2D seismic survey and exploration drilling.

The PSC for the 26/18 is the first cooperation between CNOOC and SPC.

On the basis of earlier block 29/26 seismic work, Husky signed a three year contract with Seadrill Offshore AS for the deepwater semisubmersible drilling rigWest Hercules under construction in South Korea and scheduled for 2Q 2008 delivery. In preparation for the rig, Husky signed a contract with China Offshore Seismic Ltd. for the acquisition of a further 568,342 acres (2,300 sq km) of 3D seismic data.

The block is in the South China Sea approximately 300 km (186 mi) southeast of Hong Kong and 65 km (40 mi) southeast of the Panyu gas discovery. The block covers 979,773 acres (3,965 sq km). CNOOC has the right to participate in development of any discoveries up to a 51% working interest. In 2006, Husky drilled the Liwan 3-1-1 well in 1,500 m (4,921 ft) water depth based on 2D seismic data on a large structure with 14,826 acres (60 sq km) of closure. The well encountered 56 m (184 ft) of net natural gas pay on logs over four zones. In Aug. 2006, Husky shot a 98,842-acre (400 sq km) seismic survey over Liwan 3-1-1 and the adjacent structures.

Husky also holds block 29/06 immediately east and adjacent to block 29/26. More than twice the size of 29/26, it covers an area of 2,289,431 acres (9,265 sq km). In the first exploration phase, Husky committed to acquiring 123,553 acres (500 sq km) of 3D seismic and drilling two exploration wells within three years. That seismic data will be integrated with the seismic acquisition on block 29/26.

On its exploration blocks 35/18 and 50/14 in shallow water in the South China Sea immediately west of Hainan Island adjacent to the Dong Fang and Ledong gas fields, Husky is committed to acquiring 123,553 acres (500 sq km) of 3D seismic on block 35/18 within the first three years. The company says it plans to acquire seismic in 2008.

India

India’s Oil and Natural Gas Commission director for offshore, N.K. Mitra, inaugurated a computer center of the Mumbai High asset, christened the “GeoSim Centre,” on Sept. 16, 2007. The GeoSim Centre has a Sun Fire E6900 server, FAS 980C (network attached storage), six Sun workstations (Solaris bootable) and six Sun workstations (dual bootable with Linux/Windows XP 64 Bit, Cisco 4000 series networking switches, 40 KVA online UPS providing a backup of two hours, plus video conferencing facilities). The center consolidates the Mumbai High computing resources for geophysical and geological applications, modeling and reservoir simulation.

GGS-Spectrum announced in mid-year a contact with the government of India to reprocess 12,000 line km (7,456 mi) of legacy seismic data.

India’s Oil and Natural Gas Corp. Ltd. awarded Fugro a $145-million contract for 3D seismic acquisition and onboard processing offshore India. Fugro is scheduled to run the surveys in the 2007-08 and 2008-09 seasons at seven months per season. Work is slated to begin in 4Q 2007.

In 1Q 2007, Santos announced it would spend $70 million for an eight-year work program on the first of two deepwater concessions in the Bay of Bengal. Santos subsidiary Santos International Operations Pty. Ltd. holds 100% working interest in 16,500 sq km (6,371 sq mi) NEC-DWN-2004/1 and NEC-DWN-2004/2 blocks in the east coast basin in the northern part of the bay. The blocks lie 175 km (109 mi) from the Indian coast in water depths ranging from 400 m to 2,300 m (1,312-7,546 ft). The work program for block NEC-DWN-2004/2 includes 2D and 3D seismic surveys and one exploration well. The work program for NEC-DWN-2004/1 consists of 2D and 3D seismic surveys.

Reliance Industries Ltd. had scheduled 3D seismic data acquisition for 3Q 2007 in its deepwater block MN-DWN-2003/1 in the Mahanadi basin, which it received under NELP V. The $15-million project includes a 1,800 sq km (695 sq mi) shoot. Following the seismic work, Reliance will drill three exploration wells according to the exploration licensing policy. Reliance recently processed more than 2,300 line km (1,429 mi) of previously shot 2D seismic data in the east coast block. The block is already covered by 1,039 km (645 mi) of previously shot 2D and satellite gravity survey.

In its east coast block KG-DWN-98/3, Reliance acquired about 960 sq km (371 sq mi) of Q-marine data. Interpretation is in progress.

Reliance has generated leads in the deepwater block KK-DWN-2000/1 of Kerala-Konkan basin following interpretation of 1,630 line km (1,013 mi) of new 2D. Reliance is committed to drill three exploratory wells in the block.

ONGC has enhanced its seismic acquisition program in NEC-DWN-2002/2 in the Bay of Bengal after the first exploration well failed to find production. The acquisition, processing, and interpretation of data from 2,000 sq km (722 sq mi) was boosted to 3,500 sq km (1,351 sq mi) and ONGC also planned to conduct 1,270 sq km (490 sq mi) of Q-Marine surveys and 655 sq km (253 sq mi) of 3D acquisition..

ONGC is set to appraise its discoveries in Krishna-Godavari deepwater block KG-DWN-98/2, with plans to submit a geology and geophysics program to the Directorate General of Hydrocarbons sometime in October. Following governmental approval, ONGC will enter a 15-month appraisal phase in the block by early 2008.

Indonesia

Wavefield Inseis has secured a 3D seismic survey offshore Indonesia through its partnership with Elnusa Geosains. This survey is expected to take approximately three months and will require the vessel to tow 10 streamers, each 6,000 m (19,685 ft) in length, and dual sources.

GFI Oil and Gas Corp. says a 432-sq-km (167-sq-mi) 3D seismic survey by Veritas on the Glagah Kambuna field in the Malacca Straits is complete, and processing is under way.

“This high-quality 3D seismic data will allow the company reserve at Kambuna field to have much better definition,” says Alex Warmath, GFI’s CEO. “Although the Kambuna field has been determined to be commercial, the ultimate size of Kambuna field (with a current 173 ft (53 m) gas column and no gas/water contact defined by drilling) has not yet been established. The new 3D seismic data will also ensure optimal positioning of the bottomhole locations of future wells. Kambuna field operator, Serica Energy, has a drilling rig under contract and plans to drill two more development wells in the last half of this year to complete the initial development drilling at Kambuna field.”

Based on that schedule, Warmath says first production can be expected in the second half of 2008.

Serica Energy Plc. is constructing the Kambuna gas/condensate field facilities offshore northwest Sumatra, Indonesia, with plans to begin production in 2008. Installation is scheduled for 4Q 2007. Two new development wells will be drilled from the tower, and the Kambuna #2 well will be re-completed to develop the Kambuna field. Later this year, the offshore and onshore pipeline route surveys will be carried out in preparation for issuing invitations to tender for pipeline supply and installation.

New Zealand

IHS and the Crown Mineral Group of New Zealand have launched a comprehensive energy data portfolio on New Zealand, which includes open-file digital seismic and well log data.

“This data portfolio presents a comprehensive picture of subsurface New Zealand,” says Peter O’Shea, IHS senior director of international business development. “It offers significant value to explorationists, business development executives, and new ventures teams by providing a one-stop source for information, saving considerable time, effort and research costs.”

IHS is offering this data portfolio in separate sections or as an entire package covering:

• East Coast-North Island - A collection of seismic lines, which were shot on behalf of Crown Minerals in Feb. 2005. The 05CM 2-D survey acquired 2,958 line km (1,838 mi) of new data
• Great South basin - The DUN06 2D survey acquired 3,160 line km (1,964 mi) of newly migrated seismic data
• Northland (block PEP38602) - A package of 2D seismic from a survey shot in Nov. 1995 on behalf of Conoco Northland Ltd.
• Offshore Northland - Seismic shot in 1982 that includes 20 lines available in SEGY format
• West of Taranaki - In 2001, the Astrolabe 2D survey acquired 6,440-line km (4,002 mi) of new data in workstation-ready SEGY data
• Maui 3D seismic - A comprehensive set of 3D data covering the giant Maui field, New Zealand’s largest producing field, in the offshore Taranaki basin.

“IHS has collated scanned images of the New Zealand well logs with onshore and offshore data. With this tool, investors are able to assess exploration and field partnership opportunities in the region and IHS has the expertise and insight to advise them on those opportunities,” O’Shea says.

New Zealand’s Crown Minerals has started the government’s third seismic data survey. The program includes 2,200 km (1,367 mi) of 2D seismic data that will be acquired north of the Raukumara Peninsula off the east coast of the North Island and 300 km (186 mi) that will be acquired off the southern Wairarapa coast. It will comprise seismic, gravity, and magnetic surveys.

The survey is part of the government’s efforts to acquire data under a $15-million fund established in 2004 to increase petroleum exploration in New Zealand. Existing data show both areas contain features likely to be of interest to exploration companies.

“The data will be offered freely to explorers to promote and encourage petroleum exploration activities in the hope that it will lead to the discovery of new petroleum reserves,” says Crown Minerals Petroleum Unit Manager Mark Aliprantis.

“The level of interest being shown by exploration companies in this government program is most encouraging. We believe this program, coupled with changes to royalty rates and the tax treatment of exploration workers, is proving successful in raising interest in New Zealand as an exploration destination.”

Meanwhile, seismic surveys are helping to delineate the largely unexplored offshore areas. In Feb. 2007, two CGGVeritas vessels were contracted for a multi-permit program this summer gathering 10,000 km (6,214 mi) of seismic data. Origin Energy contracted for a 40-km (25-mi) 2D seismic survey in Kupe in the Taranaki basin. Discovery Geo Corp. is conducting a 200-km (124-mi) survey in PEP 38343 in Cook Strait-Marlborough, and Crown Minerals is planning a 2,300-km (1,429-mi) 2D survey for the Raukumara basin.

Pakistan

SCAN Geohysical ASA is sending itsM/V Geo Searcher back to Pakistan to restart a 2D seismic survey for BP. The program is scheduled to last into 1Q 2008.The original 9,500 sq km (3,668 sq mi) program was halted in July by a monsoon.

“Both BP and GEMS requested suspension of the program after acquisition of only 1,500 km (932 mi) of data in order to preserve and maintain previously-set quality standards for the seismic data that otherwise would have been negatively affected by the poor sea and wind conditions expected by the onset of the traditional monsoon season,” said Kjell Karlsson, vice president marketing and sales for SCAN.

“However, we were quickly able to turn this challenging situation into an opportunity by a swift diversion of the vessel crew onto another 2D project together with GEMS offshore nearby Sri Lanka, which has since been successfully completed,”

Philippines

Nido Petroleum Ltd. scheduled the largest seismic program in its history for a Sept. 30, 2007, start across the company’s extensive NW Palawan exploration portfolio.

The program, which comprises a combined total in excess of 5,000 line km (3,107 mi) of 2D and 846 sq km (327 sq mi) of 3D seismic data, follows the Abukay 3D in SC 54 and Talusi 2D in SC 58, both completed at the end of 2006.

The combined program scheduled two seismic vessels, theMV Pacific Titan and MV Pacific Sword, both contracted from CGGVeritas for the 100-120 day operation.

The program will focus on the following:

• SC 58 - Nido and joint venture partner PNOC-Exploration Corp. will acquire 661 sq km (255 sq mi) of 3D seismic over four areas aimed at delivering a portfolio of fully de-risked and mature drilling candidates by 2Q 2008. In addition to the 3D seismic program, Nido plans to acquire 1,600 km (994 mi) of 2D seismic within SC 58 to develop additional potential in the block
• SC 54 - Following the preliminary interpretation of the Abukay 3D seismic Nido and joint venture partner Kairiki Energy Ltd. (formerly Yilgarn Gold Ltd.) will extend the 640 sq km (247 sq mi) Abukay 3D seismic survey westward to cover the Princesa Lead and Late Miocene Pagasa Turbidite play fairway in this sector of SC 54. Furthermore, Nido and Kairiki plan to capitalize on the presence of the seismic vessel and acquire approximately 454 km (282 mi) of new 2D seismic over the less explored southern sector of SC 54 in conjunction with the adjacent SC 58 2D seismic program. TheMV Pacific Titan will acquire the SC 54 and SC 58 2D and 3D programs
• SC 63 - Nido and PNOC-EC will acquire 3,165 line km (1,967 mi) of 2D seismic data to get a regional platform for further 2D and or 3D seismic in 2008. The survey will also include a closely spaced 2D grid around the Aboabo-1 well drilled in 1980 by Phillips Petroleum which is reported to have flowed gas at rates in the order of 50 MMcf/d of gas

The data will be acquired as part of a group-shoot organized by SC 63 operator PNOC-EC using theMV Pacific Sword.

Nido’s head of exploration, Jon Pattillo, says, apart from being the company’s largest ever and, at 120 days, the longest operated program, the size of the program reflects the potential identified by the 2006 seismic campaign.

“The 2007 seismic program is multi-faceted, with SC 54 and SC 58 focused on delivering a drilling portfolio through 3D acquisition over five high-graded areas. In SC 63, the objective is to accelerate the 2D seismic program to bring this large block to a level of maturity similar to SC 54 and SC 58 as quickly as possible. On completion of our 2007 program and within the space of approximately 12 months, Nido will have covered the majority of its exploration acreage with an extensive grid of high quality 3D and 2D seismic data on which to build the companies prospect and lead portfolio,” Pattillo says.

Nido anticipated the SC 54 3D seismic survey to start on Sept. 28, 2007, and run for 20 days, subject to weather. The SC 58 2D and 3D program was set for late October and run into Jan. 2008. The SC 63 survey is anticipated to commence in mid-October and extend through to Dec. 2007.

Nido expects first oil from the Galoc oil field in the northwest Palawan basin offshore the Philippines in 1Q 2008. The first development well is to be spudded in Philippines service contract (SC) 14 in 320 m (1,050 ft) water depth.

Nido says theEnergy Searcher drillship, which is drilling an exploration well in Mozambique, will drill two wells to be linked through subsea and surface facilities with the Rubicon Intrepid FPSO.

The field initially will produce 15,000 b/d of oil, with a production plateau of 17,500 b/d for 12-24 months, Nido reports.

Tap Oil Ltd. has completed a 3D seismic survey on its SC 41 Alpine block offshore in the Sulu Sea. Data processing has begun and interpretation is expected by the end of 3Q 2007.

Based on existing 2D seismic data, the SC41 holds several leads, which are interpreted to have the potential for 50 to 150 MMbbl of oil along trend from the Wildebeest -1 exploration well, which discovered 40° API oil in 2000.

Further exploration drilling in SC41 is anticipated in mid-2008.

CGGVeritas has completed acquisition of 2D and 3D seismic data for Otto Energy Ltd. in service contracts 50, 51, and 55. Some 261 km (162 mi) of survey was deferred. The completed parts of the survey included the following:

• 116 sq km (45 sq mi) of 3D over Calauit and Calauit South in SC 50
• 954 km (593 mi) of 2D in deepwater SC 55
• 145 sq km (56 sq mi) of 3D over Argao and Cabilao in SC 51.

CGGVeritas also did the processing and delivered to Otto Energy in 4Q 2007. The next step in its exploration program is an environmental survey in the Cebu-Bohol Straits to prepare for drilling the Argao structure in 2008, according to Otto. This survey will begin within the next few months.

Oil and gas exploration company Otto Energy Ltd. has begun operations for the Trinity 2D and 3D offshore seismic program in the Philippines. A pre-survey vessel began routine line scouting in mid-May. The pre-survey was followed by a full 3D offshore seismic survey performed by the CGGVeritasPacific Sword scheduled to begin May 22.

Otto will acquire 116 sq km (45 sq mi) of 3D data over the Calauit and Calauit South fields in block SC 50. ThePacific Sword will then sail to block SC 51 to acquire a 145-sq-km (56-sq-mi) 3D seismic survey and 261 km (162 mi) of 2D data. Finally, the vessel will acquire 860 km (534 mi) of 2D data in deepwater permit SC 55.

Vital Resources Corp. is talking to Otto Energy regarding drilling its Argao prospect in the Philippines before year-end. Drilling depends on the availability of a seismic vessel and a rig. Argao, otherwise known as SC 51, is believed to contain at least 100 MMboe.

“Having production from both SC 50 (Calauit) and SC 51 (Argao) in early 2008 would put Vital on the map,” says Michael Whitehead, president and CEO of Vital Resources.

Vital acquired the exploratory block in SC51, which consists of two sub-blocks over the East Visayan basin. The southern block contains seven identified prospects of which three are drill ready. The combined reserves potential, as estimated by MBA Petroleum Consultants of Australia, is 75-465 MMboe.

The company has made arrangements to take delivery of a multi-purpose semisubmersible rig in late 2007 to drill the horizontal re-entry of Calauit 1B in SC50. The company believes the Calauit 1B oil field could contain up to 39.5 MMboe, of which 6.44 MMbbl will be recoverable.

The focus on SC 55 is the Marantao prospect, a carbonate reef buildup interpreted through reprocessed 2D seismic to be potentially five times larger than the Malampaya structure. The Malampaya structure is the Philippines’ largest oil and gas field, presently operated by Shell and estimated by the Department of Energy of the Philippines to contain 500-750 MMbbl of oil and 2.5-4.0 tcf of recoverable gas.

Russia

TGS-Nopec Geophysical Co. has partnered with Dalmorneftegeofizika to acquire a new multi-client 2D seismic program in Russia’s Sea of Okhotsk. The 5,500-km (3,418-mi) SA-07 survey covers an area close to Sakhalin Island.

DMG will undertake processing at its center in Yuzhno-Sakhalinsk, and expects to make the results available by Dec. 2007.

This is the fourth consecutive year that this Norwegian-Russian partnership has acquired seismic data in the Sakhalin region. The completed program will boost their databank to more than 35,000 km (21,748 mi).

Thailand

PTTEP Siam Ltd., an affiliate of PTT Exploration and Production Public Co. Ltd., who is the sole shareholder and the operator in the exploration blocks L21/48, L28/48, and L29/48.

PTTEP Siam signed an assignment agreement on Sept. 14 with Resourceful Petroleum (Thailand) Ltd. to optimize the petroleum exploration risk. This has resulted in the participation interests of PTTEPS (operator) and RPL to 70% and 30%, respectively.

Blocks L21/48, L28/48, and L29/48, covering an area of approximately 12,000 sq km (4,633 sq mi), are in northeastern Thailand. The petroleum concession of the blocks was awarded to PTTEPS on Dec. 8, 2006. In 2007, PTTEPS planned to perform additional geological study in this area.

The change in the participation interests will be effective upon receiving the approval of the Supplementary Concession from the government.

Vietnam

Serica holds 33.3% interest in block 06/94 PSC in the Con Son basin offshore Vietnam. The block lies immediately south of the producing Lan Tay and Lan Do gas fields, and immediately east of the Dua and Blackbird oil discoveries. Several prospects have been identified on the block, and a new 3D seismic survey was scheduled to begin in 3Q 2007.