Tullow 2011 - drilling program and results

Monday, Jan 10 2011 by
6

This is the thread for 2011. Sept09-Dec10 are covered on this thread which is now closed.  This thread is just an archive of results - for discussion please post on on of the other Tullow threads: Ghana, Uganda, others

Updated for March Enyenra-2A success - a huge result.

 For 2011 program, see Trading Statement and Ops Update, Jan 2011

 If anyone sees any corrections or ommissions, please reply on this thread.


Block   Prospect   date

Ghana

DWT Tweneboa-4
 top hole only drilled, to be completed next


Enyenra-2A
success


Enyenra-3A
after Tweneboa-4 completed
 
WCTP Teak-1
success


Teak-2
drilling


Cenomanian Channel
Q1 2011


South Central Channel
Dahoma up-dip
2011 campaign

other WATM

 LB-15 (Liberia) Montserrado (aka Cobalt) H2

SL-7(Sierra Leone) Jupiter
H2

Cote D'Ivoire CI103/105

Fan 4 west

Lower Bandama Channel

H2

*** "political situation being monitored"

Uganda





EA1 & Ea2
Butiaba area 'various - in progress' oh yeah ???

other Africa

 Tanzania H2

Maroc Nord (Gabon
6 well program
in Nov10, first 4 appraisal wells succesful

Block 6 (Mauritania) Gharabi
failure


Sidewinder
H2

Kenya/Ethiopa
2 wildcat wells
late 2011

S America

Coronie (Suriname)
5 wells start Q1

Uitkijk (Suriname)
2 wells
Q2

Guyane Martime (French Guiana) Zaedyus Q1 11

Georgetown (Guyana) Jaguar Q2 11

Pakistan

Kohat Jabbi-1
Q2

Netherlands

E13b & E15c
Muscovite
drilling

 

Results Archive from Jan 11

10.01.11 Ghana: Tweneboa-3  Appraisal Well

34 metres of net gas condensate pay in two zones of high quality stacked reservoir sandstones. "Work is underway to integrate seismic, pressure and hydrocarbon phase data in order to progress development options for the Tweneboa and Enyenra (Owo) fields in the Greater Tweneboa Area." 6k from t-2 and 12k from T-1 -  "a bold appraisal step-out"

nb The significant oil discovery, made by the Owo-1 exploration well has now been named the Enyenra field.


10.01.11 Mauritania Cormoran Explo well

 Special Offer: Invest like Buffett, Slater and Greenblatt. Click here for details »

4 good quality, gas-bearing, sands encountered: 2 in Pelican prospect, 1 in Cormoran and 1 in Petronia - still gas bearing when drilling stopped.  DST on Lower Pelican - sstabilised flow rates of up to 22 to 24 MMscfpd were obtained on a 32/64" choke, the flow rate being constrained by the need to avoid sand production. "Substantially higher flow rates could have been achieved were it not for this operational constraint."


10.02.11 Ghana teak-1 Explo well - SUCCESS

73 metres of net hydrocarbons in two Campanian and three Turonian reservoirs. The well was located 4.6 km northeast of the Mahogany-2 well, 2.7 km outside the Jubilee Unit boundary.GAs, gas condensate and oil.  Campanian trap is potentially 50 sqkm in area.

"Success in all five of the targeted reservoirs, encountering 73 metres of total net pay, is an excellent outcome for the Teak-1 well and a great start to our 2011 multi-well exploration campaign in the West Cape Three Points licence."


16.02.11 Mauretania Gharabi explo well

Failure - poorly developed, water bearing reservoirs


03.03.11 Ghana Enyenra-2  appraisal well - SUCCESS

7k down-dip of Owo-1, drilled to appraise the Upper and Lower Channels of the Enyenra oil field. Enyenra-2A has intersected 21 metres of net oil pay in the Upper Channel and 11 metres of net oil pay in the Lower Channel. The well also tested a deeper Turonian fan where five metres of gas-condensate bearing sandstones were intersected.

Upper Channel oil is in communication with Owo-1. Lower Channel may also be in communication with the deeper pools seen in Owo-1 and its sidetrack.

"The discovery of oil this far down-dip in Enyenra-2A, and the confirmation of its communication with the Owo-1 oil discovery, is an exceptional result. This represents a major step forward in the appraisal of the Enyenra-Tweneboa area and is highly encouraging for our target to declare commerciality later this year."



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Tullow Oil plc (Tullow) is an United Kingdom -based company engaged in oil and gas exploration, development and production and the sale of hydrocarbons and related activities. It operates in three geographical segments: Europe, South America and Asia; West and North Africa and South and East Africa. The Company has interests in over 100 production and exploration licences in 22 countries and focuses on four core areas: Africa, Europe, South Asia and South America. On February 21, 2012, the Company completed the farm-down of two thirds of its Uganda interests to Total and CNOOC.As of December 31, 2012, the Company acquired an acreage positions in Kenya and Ethiopia with the first well in Kenya making an important discovery at Ngamia-1. In January 2013, it acquired Spring Energy Norway AS exploration portfolio. more »

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17 Posts on this Thread show/hide all

fuiseog 10th Jan '11 1 of 17

Heres a link to Davys comment this morning:-

https://www.davy.ie/resprivate/content/articles/tullow20110110.pdf

fuiseog (not currently a holder)

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ohisay 10th Jan '11 2 of 17

Couple of comments from Davy today on these two.
http://www.davy.ie/Generic?page=MorningNews8

The well was a very significant step out, drilled 12km southeast from the first discovery well. The P90/P50/P10 resource numbers for the Greater Tweneboa complex are 100/500/1400m barrels respectively. This well gives comfort that these numbers are a reasonable estimate of the area's volumetrics.
The outcome provides further evidence of the very rich hydrocarbon endowment in the Tweneboa complex. Our risked assessment of the area is 272p per share, and we are comfortable with that number for now. Our group NAV is 1501p per share.

http://www.davy.ie/Generic?page=MorningNews9

We value Pelican gas at 21p per share risked (with commercialisation now the key challenge). We have no value for the Cormoran or deeper Turonian targets as of yet, awaiting the final analysis from the well data, but note that the trend now looks to be established in an arc from Mauritania down to Ghana.

 


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ohisay 10th Jan '11 3 of 17

In reply to fuiseog, post #1

Got there before me!

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Fangorn 27th Jan '11 4 of 17
1

http://www.investegate.co.uk/article.aspx?id=201101270700181578A&fe=1

TRADING STATEMENT AND OPERATIONAL UPDATE -

Jubilee First Oil achieved within 40 months of discovery
83% E&A success ratio in 2010; high-impact drilling programme for 2011
Continued progress towards Uganda farm-down

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StrollingMolby 6th Jul '11 5 of 17
1

Extensive Trading Update issued yesterday, full of news on production, exploration, finances. 

HIGHLIGHTS

Production and Development activities

·      Jubilee field has produced over 10 million barrels gross; production currently around 80,000 bopd with ramp up to 120,000 bopd expected to be reached in August.

·      Tweneboa and Enyenra development progressing towards Government approval in first half of 2012; successful appraisal programme continues with Tweneboa-2 oil zone tested at 6,500 bopd.

·      In Uganda, MoU signed with the Government; Sale and Purchase Agreements signed for the farm down to CNOOC and Total for $2.9 billion; completion conditions currently being finalised.

·      Working interest production averaged 75,350 boepd in 1H 2011; 2011 full year production guidance now 90,000 to 94,000 boepd.

Exploration and Appraisal activities

·      79% exploration and appraisal success ratio year-to-date in 2011; 15 successful wells out of 19.

·      West Cape Three Points drill-out continues with successes at Teak-1 and Teak-2.

·      Seven successful E&A wells in Uganda year-to-date including the material Jobi-2 and Gunya-A wells.

·      Zaedyus well in French Guiana commenced drilling in March; result expected in August.

·      High-impact wells to commence drilling in 2H 2011 in Guyana, Liberia, Sierra Leone and Kenya.

Group operations and financials

·      €300m acquisition of Nuon E&P completed; $305m acquisition of EO assets awaiting approval; pre-emption in Sierra Leone increases stake by 10% to 20%.

·      Tullow to list on the Ghana Stock Exchange during July; 4 million share offer closed yesterday.

·      First half capital expenditure of $675 million with forecast 2011 expenditure remaining at $1.5 billion.

·      Record 1H 2011 revenue of $1.05 billion. Net debt at 30 June 2011 was approximately $2.6 billion.

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fuiseog 20th Jul '11 6 of 17
5

A useful note from Davy listing and describing the next 6 months drilling activities. Well worth a read IMO.

https://www.davy.ie/resprivate/content/articles/tullcr20110720.pdf

Also mentioning its acquisition capability, with the proceeds of the Uganda deal to add to it's undrawn borrowing facility. For a company with such a good track record of making a success of acquisition it's a good time to have plenty of dosh.

Production possibility increasing over the next several years to 250000 boepd.

An NPV of 1519p (unrisked 2963p), leaving the current SP at a 16% discount.

I had been out of TLW for a while and am pleased I started buying back in on weakness through the spring.

fuiseog

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ohisay 20th Jul '11 7 of 17
2

There was some recent broker comment on the upcoming Zaedyus well .

http://www.proactiveinvestors.co.uk/companies/news/30710/tullow-oils-next-big-drill-result-could-have-major-implications-for-wessex-and-northern-petroluem--30710.html

Tullow highlighted five prospects which would be de-risked if Zaedyus is successful.

While management refrained from hinting at prospect sizes, the aerial extent of these prospects suggests they are larger than the 230-700 million barrels of oil Zaedyus prospect.

BarCap in a recent research note was very bullish on Tullow’s the prospects in the area. “If successful, this could open up a new play, which we estimate could be worth £9 a share unrisked,” said analyst Alessandro Pozzi.

 

Earlier in the year Blomberg ran a rather good piece on the area  

http://www.bloomberg.com/news/2011-02-25/tullow-geologist-gambles-on-70-billion-oil-find-by-chasing-atlantic-drift.html


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Surandy 2nd Aug '11 8 of 17
2

It looks like Uitkijk #11 & #12 have been drilled in May 2011 and the 5 well drilling program in the Coronie block is underway.

http://www.staatsolie.com/pdf/nieuws_juli_final.pdf

Evaluation Phase Uitkijk Block-North

Paradise Oil Company (POC), a Staatsolie subsidiary, has
recently continued its operations in the Uitkijk Block.

Two evaluation wells were drilled in May in the northern part of the area.

The evaluation wells have depths greater than 370 meters.
Drilling, observations and surveys are jointly conducted with Tullow Oil, the British-Irish firm which signed a Joint Operations Agreement in 2007.

The two wells will be closely monitored for six months.

Tests must reveal whether this area has the same type of oil as the Tambaredjo field. Aspects as ground pressure, viscosity and water content of the well will also be evaluated.

?If this field has recoverable resources we will know what
developmental strategies we can apply,? says POC Operations
Manager Patrick Brunings. The oil traces have remarkably been located in a very thin layer. The Uitkijk Block is situated close to the Tambaredjo field. Further exploration of the Uitkijk Block is based on data collected by the Canadian Company Koch, which explored the area, some ten years ago.

Interpretation
In 2007, POC and Tullow Oil restarted further exploration of the Uitkijk Block. Between 2007 and 2009 ten wells have been drilled. Data collected during the exploration revealed that the area has oil deposits, roughly estimated between four and six million barrels. This field would have a production span between ten and fifteen years. The next phase must reveal not only whether these estimates are realistic but whether recovering the oil would be profitable. A thorough evaluation of both wells must yield this data.

The output per well will be decisive. The evaluation phase will also address the production behavior issue. It regards the water, oil and gas ratio found in certain quantities and how this ratio changes in time. Brunings reiterates that ?whether Uitkijk North will see further development depends on interpretation of the data.? Tests must reveal if producing the oil will be profitable.

?Every well requires an exact survey to get a better insight of the area.? In order to determine how far the field stretches eastward a third well is drilled to the east of the two evaluation wells. An economic model is drafted to test run the several scenarios and to decide which possibilities there are to recover the oil. If the area proves to be indeed commercially profitable, it will take three to four years before production could be launched.

Uitkijk Block-South
POC has also laid eyes on the southern part of the Uitkijk
Block and is already planning exploration drillings for that area. Geological data for that area, however, is scarce. An analysis of the data gathered from the Uitkijk Block North will present a better picture of the area with prospective locations and depths of oil deposits in Uitkijk South.

Preparations for drilling exploration wells have already been made, including environment and social studies. The prospected well locations are mainly situated in residential areas and on land owned by third parties. Contact with the local community is therefore very important. Soon several consultation sessions with the community will be kicked off to inform them of the coming operations. Five possible locations have been projected for the three proposed wells. Geological data will be decisive for selecting the locations of the three wells, which lie quite far apart. This drilling program will commence, according to plan, in the final quarter of 2011.

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ohisay 25th Aug '11 9 of 17
5

In reply to fuiseog, post #6

Davy comment on this weeks update .

Currently trading at Davys estimate of its commercial/undeveloped reserves price I see.

Arguably one to keep an eye on for the long term at todays prices if the Ugandan cash comes through as promised - amongst many others of course!.

http://www.davy.ie/LR?id=1574

Full year production guidance is now for 82,000-84,000 boepd, with the reduction largely due to the Jubilee ramp-up delay but also some delays on infill drilling across other group assets. Progress continued in moving the Enyenra and Tweneboa discoveries towards development with project sanction expected in 2012.

In Uganda, the group has guided strongly that the farm-out will complete in September following which $2.9bn will be paid over to Tullow, completely de-gearing the group. On the exploration/appraisal front, three well results were announced. Offshore Ghana, the Akasa (formerly Dahoma up-dip) hit a good package of light oil bearing sands; in the UK sector, the Bunter sands in the Foxtrot structure were found to be water wet only and the huge step out on Jobi-East was also water wet.

DAVY VIEW: The results demonstrate the strengthening of the group's production profile, and the doubled dividend is probably meant to signal Tullow's confidence in its ability to continue production and cash flow growth.

September will be a huge month for the group with results from the high impact Zaedyus and Montserrado wells due as well as the receipt of the $2.9bn due from the Uganda farm-out. We value the group at 1519p per share with commercial and undeveloped reserves making up 971p of this amount.

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Surandy 28th Aug '11 10 of 17

What happened with the Uitkijk block in Suriname? Wells have been drilled and Tullow Oil has handed back their interest to Paradise Oil (the state owned exploration company)?

TLW retain no interest in Uitkijk. So did they get anything in return for their stake in Uitkijk? Estimates put the oil discoveries at somewhere between 4m & 7m barrels.

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oilretire 9th Sep '11 11 of 17
7

Success at Zaedyus. Hugely significant for the new basin. Still drilling & a conference call at 8am.

A conference call dedicated to a single well, together with Angus's comments highlights the significance IMO

http://www.investegate.co.uk/Article.aspx?id=201109090700089280N

Angus McCoss, Tullow's Exploration Director, commented today:

"The discovery at Zaedyus has proved the extension of the Jubilee-play across the Atlantic and made an important new discovery in French Guiana. Tullow has built a commanding and unique acreage position in South America and this result marks the start of a significant and potentially transformational long-term exploration and appraisal campaign in the region."

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ohisay 9th Sep '11 12 of 17
3

http://online.wsj.com/article/BT-CO-20110909-702807.html

"This shows we are sitting at the top table of exploration," said Angus McCoss, Tullow's exploration director, in an interview with Dow Jones Newswires.

"This proves the Jubilee play is mirrored on the South American side of the Atlantic," said McCoss. "This result marks the start of a significant and potentially transformational long-term exploration and appraisal campaign in the region."

The discovery is a "major step" because the geological system offshore Latin America is bigger than that of offshore Ghana, said McCoss. "There are at least half a dozen more of these Zaedyus type traps adjacent," and the chance of finding oil in them has increased, he said.

Tullow Oil has hit a home run with this discovery, said Bank of America Merrill Lynch in a research note. The bank initially gave Tullow a 10% chance of finding 700 million barrels of oil, but the nature of the discovery means the total resources could grow beyond this, it said.

The discovery means Tullow and its partners can now drill with a greater chance of success in licenses they hold offshore Sierra Leone, Liberia, Cote d'Ivoire, Suriname and Guyana, said McCoss.

These areas all have very similar geology because, "if you turn the clock back 100 million years, the Atlantic was just a narrow sea," said McCoss. Plate tectonics have since dragged the continent apart, but the geological structures that trapped the oil have remained intact.

Shell is the largest stake holder, with 45% of the license offshore French Guiana where the discovery was made. Tullow, which is running the drilling operation, has a 27.5% stake. French oil company Total SA (TOT) has 25% and Northpet has 2.5%

"Certainly we've got the financial muscle and strategic mindset to move fast on this," said McCoss.

Tullow and Spain's Repsol SA (REP) will start drilling the Jaguar prospect offshore Guyana in October, he said.

Be interesting to see what happens to CGX in Canada this afternoon - they have a 25% share in that upcoming Jaguar well .

http://cgxenergy.ca/documents/CanaccordGenuity-Jun02-11.pdf

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StrollingMolby 9th Sep '11 13 of 17
4

In reply to ohisay, post #12

Well Angus McCoss was certainly keen on the prospects in the conference call (as much as a dour Scots man can be) with the corresponding derisking of other fan systems out there.

Decent map of the various leads can be seen here on the Bluebird Energy (LON:BBE) site (holds 11.28% of Wessex Exploration (LON:WSX) ).

And from another site, a useful background note on the Guianas opportunity/potential:

http://tudor.na.bdvision.ipreo.com/NSightWeb_v2.00/Downloads/Files/14587.pdf

 

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ohisay 9th Sep '11 14 of 17
4

Davys take.

http://www.davy.ie/LR?id=1687

This is a very significant and positive outcome for Tullow. It bears similarities with the discovery well for Jubilee Mahogany 1. The result materially derisks a family of up to five Zaedyus lookalike fans. While each target will need to be drilled, a working petroleum up system has been shown to be present in the immediate area. Specifically, the basin is mature for hydrocarbons with a working source.

There are differences between the various Latin American plays, but the Zaedyus result will provide encouragement for the whole region. We see the Zaedyus result alone adding up to 40p per share. However, as noted, this is just one of a family of six structures and we also value on the basis of a P50 (or most likely) outcome. The upside case for Zaedyus is some four times greater. Our NAV for the group is now 1558p, and the stock is outstanding value at current levels.

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ohisay 9th Sep '11 15 of 17
2

In reply to ohisay, post #12

Be interesting to see what happens to CGX in Canada this afternoon - they have a 25% share in that upcoming Jaguar well .

Wow -  Up 83% as I write .

 


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fuiseog 9th Sep '11 16 of 17
3

The CGX (OYL) rise bit too exciting for Toronto, they've suspended them @ CAD$0.80, a mere +64.95%.

Reason for Halt: Pending Contact With Company

http://tmx.quotemedia.com/article.php?newsid=44427357&qm_symbol=OYL:CA

I was considering a stab at them at opening but decided to keep my head down. I'll just dream on.

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fuiseog 12th Sep '11 17 of 17
4

Davy comment including some useful numbers.

https://www.davy.ie/resprivate/content/articles/tullowcr20110912.pdf

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