In a press statement, the company said it is “evaluating vari-
ous alternatives to address its liquidity and capital structure,
which may include a private restructuring or a negotiated re-
structuring of its debt under protection of Chapter 11 of the US
It reported a net loss of $138.1 million in this year’s second
quarter compared with net income of $8.2 million in second-
quarter 2016. The firm owns seven high-spec drillships.
Paul Reese, who recently succeeded Chris Beckett as chief
executive officer, noted signs of an upturn. “Lately, we have
received an increase in market inquiries for projects in several deepwater regions of the world starting sometime in 2018,
which is promising,” he said.
EXPLORATION & DEVELOPMENT QUICK TAKES
Twinza signs deal for Pasca A field development
Twinza Oil Ltd., Perth, has signed an agreement for the provision of support on its Pasca A gas-condensate field development in the Gulf of Papua. The agreement, signed with Baker
Hughes, includes drilling services, wellheads, and pressure-control equipment for the coming fourth and final appraisal
well in the field. The well will be drilled in the next 2 months
and suspended as a future development well.
The final investment decision on the Pasca A project is expected in 2018. Once FID has been reached, Baker Hughes will
provide an integrated gas processing solution from the wells
through to point of export.
Called the first of its kind in the industry, the fullstream
agreement includes a wide range of services. Apart from drilling, it comprises subsea equipment, gas processing topsides,
gas compression and turbomachinery, as well as installation
Last month Twinza signed a contract with China Oilfield
Services Ltd. for use of the COSL Seeker jack up rig to drill the
appraisal well in Pasca A field.
The company submitted an environmental impact statement
for the development program in August 2016 with a plan to
initially strip condensate and LPG from the gas flow. The LPG
and condensate is to be fed into two separate floating production, storage, and offloading vessels while the dry gas is to be
reinjected into the reservoir for later redevelopment.
Twinza estimates Pasca A contains 19 million bbl of condensate and 20 million bbl of LPG. The propane component of
the LPG will be sold into Papua New Guinea’s domestic market
while the condensate, butane, and excess propane will be exported. The liquids project is expected to have a 20-year lifes-pan with a development cost of $250-550 million.
The subsequent gas production options include installation
of a floating LNG facility or a pipeline to shore.
Pasca is a carbonate pinnacle reef structure that lies in permit PPL328 in 93 m of water 85 km from the nearest point on
the Gulf of Papua coast and 265 km west of Port Moresby.
A Cairn Energy PLC-led joint venture has made an oil discovery offshore Senegal with its SNE North-1 wildcat well drilled
in the Sirius prospect north of recently discovered SNE oil field.
SNE North-1 encountered oil in three separate intervals and
it is possible a fourth reservoir zone also is present.
JV member FAR Ltd., Perth, reported that the intervals include an oil and gas column in the S520 zone that is the high-quality, lower reservoir in the SNE field. SNE North-1 encountered this reservoir deeper than SNE field oil-water contact.
The JV recovered samples of 35° gravity oil, which is lighter
than the oil in SNE, as well as water and gas to surface.
SNE North-1 is in 900 m of water about 90 km offshore
in the Sangomar Deep Offshore block and 15 km north of the
SNE-1 discovery well.
The combine is now working to determine the extent of
the hydrocarbon accumulation and integrate the results with
block-wide data gathered so far. FAR believes the well result
has positive implications for further exploration potential to the
north along the structural trend containing SNE field.
FAR says the preliminary analysis indicates SNE North-1
has encountered in excess of 24 m of gross hydrocarbon column across at least three intervals. Of that, in excess of 16 m of
net hydrocarbons are in high quality reservoirs.
The well has been plugged and abandoned as planned. It is
the last well in the five-well 2017 drilling campaign and the rig
Stella DrillMAX is being released.
The JV is reviewing the potential for further exploration
drilling in 2018 within the Rufisque, Sangomar, and Sangomar
Deep production-sharing contract area.
BP reports productive Mancos shale well test
BP PLC recorded an average 30-day initial production rate of
12.9 MMcfd of natural gas from its BU 602 Com 1H well in San
Juan County, NM, part of the San Juan basin.
The well was drilled with a 10,000-ft lateral in an area
known as the Northeast Blanco Unit (NEBU), a section of federal lands in San Juan and Rio Arriba counties of New Mexico
where BP has had a presence since the 1920s.
The well test took place on assets BP acquired from Devon
Energy Corp. in late 2015, which expanded BP’s existing position in the San Juan basin and provided better access to the
“This result supports our strategic view that significant resource potential exists in the San Juan basin and gives us confidence to pursue additional development of the Mancos shale,
which we believe could become one of the leading shale plays
in the US,” commented Dave Lawler, chief executive officer of
BP’s US Lower 48 onshore business.
BP’s Lower 48 unit operates 3,900 wells in the San Juan basin
of New Mexico and Colorado. It expects to open a new headquarters office in Denver in 2018 that will be closer to the majority of
its operated assets in the Rocky Mountain region.