Canadian Natural Resources to buy Barrick Energy
Canadian Natural Resources Ltd. agreed to acquire Barrick Energy Inc., a subsidiary of Barrick Gold Corp., to acquire BEI’s
assets and light oil production in Alberta, including certain
lands at Nipisi, for a total price of $223 million (Can).
Terms call for CNR to pay $173 million and a $50 million
royalty, Barrick of Toronto said.
Separately, Barrick also plans to sell some assets to Ventu-rion Oil Ltd. for $59 million and to Whitecap Resources Inc. for
about $174 million, the mining company said.
The current production, before royalties, from the working
interests acquired by CNR, is 4,200 b/d of light crude oil and
natural gas liquids along with 4. 4 MMcfd of natural gas. The
transaction includes properties in Worsley, Puskwa, Sturgeon
Lake, Retlaw, and Red Earth.
Barrick also is selling 92,160 net acres of unproved land at
Nipisi to CNR. An independent engineering report estimates
that acreage contains 38. 6 million of contingent resource
(based on technology under development), the companies said.
CNR Pres. Steve Laut said, “This acquisition further
strengthens Canadian Natural’s light oil asset and production
EXPLORATION & DEVELOPMENT QUICK TAKES
Alberta cancels leases near Fort McMurray
To make room for urban sprawl stimulated by oil sands development, the government of Alberta is cancelling 32 oil sands
leases held by 10 companies around crowded Fort McMurray.
“The city, surrounded by crown land, needs a larger urban
land base to accommodate new residential, commercial, and
light industrial growth,” explains a backgrounder issued by Alberta Energy.
The province has allocated more than 55,000 acres in an
area known as the Urban Development Subregion (UDS) for
sale to the Regional Municipality of Wood Buffalo, allowing
Fort McMurray to grow to the east, south, and west.
The UDS covers more than twice the current area of the city.
The government expects it to meet growth needs for more than
25 years. Holders of the canceled leases will be compensated,
Alberta Energy said.
Companies holding the affected leases are Value Creation
Inc., Alberta Oil Sands Inc., Cenovus Energy Inc., Cavalier
Land Ltd., E-T Energy Ltd., Grizzly Oil Sands ULC, Koch Oil
Sands Operating ULC, Laricina Energy Ltd., Scott Land &
Lease Ltd., and Suncor Energy Inc.
BG-Ophir hit gas discovery offshore Tanzania
BG Group and Ophir Energy PLC reported a ninth gas discovery in Tanzania at the Mkizi- 1 well on offshore Block 1.
The well encountered gas pay in three reservoir intervals in
a stacked channel complex of Tertiary age. Net pay totaled 33
m, and reservoir quality was high with all three intervals exhibiting excellent porosities and permeabilities.
Estimates of the mean recoverable resource from the discovery are in line with Ophir’s predrill expectations of 600 bcf.
Mkizi- 1 is in 1,301 m of water between the pair’s Mzia and
Jodari discoveries on Block 1. BG Group is operator with 60%
interest and Ophir has 40% of blocks 1, 3, and 4.
The Deepsea Metro I drillship will drill two appraisal wells,
including a drillstem test, at the Pweza discovery on Block 4.
This will be the first DST of the series of Block 4 discoveries,
following on from the successful tests in Block 1 on Mzia and
Ophir Energy said, “Appraisal of Pweza will look to further
underpin volumes in Block 4 which were upgraded with the
recent success of the Ngisi drilling program, while the DST is
the final stage in firming up the commerciality of the resource
across the Chewa-Pweza-Ngisi hub.”
CNOOC adds two Bohai oil, gas discoveries
CNOOC Ltd. said it found oil and gas at the Bozhong 8-4 well
and oil at the Kenli 10-4 discovery wells in Bohai Gulf.
Bozhong 8-4, in the west slope of the Bozhong sag with an
average 28 m of water, went to 1,962 m and encountered oil
pay zones and gas reservoir with a total thickness of about 50
m and 11 m, respectively. The company tested the well at 660
b/d of oil.
Kenli 10-4 is in 15 m of water in the south slope of Laizhou
Bay sag. Drilled to 2,395 m, it encountered oil pay zones with
a total thickness of about 45 m. During the test period, the oil
production of the well was around 2,800 b/d.
UK North Sea Lacewing gas find under evaluation
A group led by ConocoPhillips will conduct postwell evaluations to ascertain whether its Lacewing gas discovery on Block
23/22b in the UK Central North Sea can be rendered commercial.
The 23/22b-6Z exploratory well, which targeted the Lacewing prospect on the eastern margins of the UK Central North
Sea, reached a total depth of 14,370 ft measured depth and encountered a gas column thicker than 100 ft.
The well achieved its predrill objectives by evaluating the
Triassic interval which contained reservoir quality sands. The
well is being plugged and abandoned as a hydrocarbon discovery.