Oil & Gas Corporate News
Faroe Petroleum Plc (LON:FPM) (FPM, 169p, ? (0.90%)) announced it has reached an agreement, subject to approval from the Norwegian authorities, to increase its interest from 20% to 40% and obtain the operatorship of Norwegian licence PL440S. A well has been committed on the PL440S licence, which will target the Clapton prospect and is expected to be drilled in late 2011 or early 2012. The licence co-venturers are Det norske oljeselskap (whose stake decreases from 30% to 10%, and is current operator), Norwegian Energy Company (12%), Lundin (18%) and Dana Petroleum Plc (LON:DNX) (20%). This APA licence, awarded in 2006, is located in a very prolific area close to the giant oil fields Ekofisk, Valhall and Eldfisk, which contain 6 to 7 Bboe reserves. The licence is situated on the eastern edge of the Lindesnes Ridge 25 km away from Faroe Petroleum's PL006C South East Tor discovery. The Clapton prospect is formed on the edge of a salt induced structure referred to as the Mode Dome which was previously explored in the 1980s. The main targets in the structure are the Upper Cretaceous Hod, Tor and Ekofisk formation, which is a proven reservoir in the Central Graben both in Norway and UK and contains good flow properties through the matrix as well as secondary fracture network development.
Coastal Energy Co (LON:CEO) (CEO, 312.5p, ? (3.85%)) announced that the Bua Ban A-06 well, a development well on the the Bua Ban field in the Gulf of Thailand, was drilled to a total depth of 7,584 feet TVD and encountered approximately 40 feet of net pay with 17.5% porosity in the Lower Oligocene reservoir. The well was completed using an electric submersible pump and is currently producing approximately 800 bopd. The Miocene section of the Bua Ban A-03 well has been completed and is currently producing approximately 80 bopd. The performance of the A-03 is currently being evaluated. Two further wells, the Bua Ban A-04 and A-07, are currently being drilled and completed, and then production testing can begin. The four wells at Songkhla A continue to perform in line with modeled rates and the Company's total offshore production is now approximately 11,800 bopd. The Company's total combined production, including 2,000 boepd from the Sinphuhorm gas field, is approximately 13,800 boepd. The Company has extended its rig contract on the…
