Oil & Gas Corporate News
Xcite Energy (XEL, 39.5p, ? (1.25%)) announced that it has exchanged a letter of intent with Applied Drilling Technology International for the provision of a heavy duty, deep water jack-up drilling unit to undertake the drilling and testing of the 9/3b-R well on the Company's Bentley field in the UK North Sea. The company also announced that it has signed an agreement with AMEC for it to assist Xcite Energy demonstrate the reserves potential of the Bentley field and help bring it into production.
Europa Oil & Gas (EOG, 16.5p, ? (0.0%)) announced an update on operations at the Hykeham-1 well in the UK midlands. A 3.7m interval of Basal Sandstone was perforated and the well shut-in at surface. Wellhead pressure built to 220psig and the well has been opened up briefly to clean up the perforations. The well produced gas which indicates that the oil at reservoir conditions is close to bubble point and that the gas is liberated at the pressure drop across the formation. The well has now been shut-in for build-up prior to opening up for further flow.
Dana Petroleum (DNX, 996p, ? (0.45%)) announced that it has made a second gas discovery in the West El Burullus concession, offshore Nile Delta, Egypt in which Dana holds a 50% interest and operated by Gaz de France (GDF). The Papyrus-1X well was drilled in a water depth of approximately 20m to a total measured depth of 1990m, targeting a Pliocene prospect consisting of a turbiditic sand system. The well encountered good quality gas bearing channel sands and an extensive set of wireline log data was acquired over the reservoir section. A multi-rate drill stem test has been completed. The well flowed at rates of up to 33MMscfd with 442b/d of condensate. The flow rates during the test were constrained by the drill stem test equipment and it was very encouraging that downhole pressures remained high during the flow test. Dana and GDF Suez are currently evaluating concepts that would enable a combined early development of these two neighbouring gas discoveries. The Papyrus-1X well is being suspended for potential re-entry and future use as a gas production well. The drilling rig will then immediately move onto the Bamboo prospect in the same concession area. Bamboo is a large, Miocene channel and it is expected to…
