Reliance Industries' KG-D6 gas output falls to new low

MUMBAI -- Output of natural gas at Reliance Industries Ltd.'s D6 block in the Krishna Godavari basin fell to a record low in the week to Dec. 4, the Press Trust of India reported Thursday.
Gas production decreased to 39.80 million metric standard cubic meters a day, the news agency said, citing a status report filed by the company with India's oil ministry.
The report said that the output is lower than the 70.39 MMSCMD level envisaged by now as per the field development plan approved in 2006. Reliance started production from the offshore block in April 2009, with output of about 40 MMSCMD, it said.
Reliance holds a 60% interest in KG-D6, while BP PLC has 30% and Niko Resources Ltd. of Canada holds the remainder.

Raft, lifeboat found at site of Russian rig disaster

A raft and a lifeboat, but no people have been found on the site of the oil rig that has sunk in the Sea of Okhotsk, according to the press service of the Russian Emergencies Ministry Sakhalin region branch.

The search operation involves three ships, three helicopters and a plane.

The Kolskaya drilling rig capsized in a severe storm off Sakhalin Island’s coast on December 18th. Just 14 of the 67 people on board have been rescued.

The search teams have found 16 bodies of those who died, while the lot of 37 others remains unknown. Investigators are following up on three different leads: towing violations, the oil rig’s technical condition and bad weather conditions.

Ultra-deep-water drillship arrives in Gulf of Mexico

HOUSTON - Shell and Noble Corporation announce the Gulf of Mexico arrival of the Noble Bully I, a state-of-the-art offshore drilling rig that is designed to raise the bar in terms of safety and performance.  The Noble Bully I is the first of two Bully rigs, jointly designed by Shell and Noble, and can be equipped to drill in up to 10,000 ft of water.
The Bully rigs also feature a compact box-type drilling tower, known as a Multi-purpose Tower, instead of a conventional derrick.  As the name indicates, a Multi-purpose Tower is designed to maximize productivity and safety, yet it allows for a significantly smaller vessel when compared to other deep water drill ships of similar capacity.
The ships also feature an attention to energy efficiency, use less fuel and are shorter and lighter than comparable drill ships.  The Noble Bully I and Noble Bully II, are dynamically positioned drill ships and can, therefore, be positioned at a favorable angle toward wind, waves, and currents, and feature ice-class hulls.  Shell and Noble have increased the automated technology on the Bully rigs, increasing personnel safety on board.
The Noble Bully I has now arrived in the Gulf of Mexico from Singapore and will complete commissioning and acceptance testing this month before beginning operations.  The Noble Bully I will first drill in Shell's Mars B, "Olympus," development while the
Noble Bully II drill ship is expected to begin operations early next year in Brazil.

First post-Macondo GOM lease sale sees 28% increase in bids

Preliminary data show that the first offshore Gulf of Mexico lease sale since the Macondo oil spill has seen a 28% increase in bids compared with the last comparable event in August 2009, US regulators announced.
On December 14, Department of the Interior Secretary Ken Salazar will open Western Gulf of Mexico Lease Sale 218 in New Orleans. The sale, held by the Bureau of Ocean Energy Management (BOEM), has attracted 241 bids submitted by 20 companies on 191 tracts offshore Texas, compared to 189 bids submitted by 27 companies on 162 tracts during the previous Western Gulf Lease sale in August 2009.

Blocks are located in federal waters from nine to more than 250 miles offshore, in water depths of about 16 feet  to more than 10,975 feet. BOEM estimates that this sale could result in production of approximately 222 to 423 million barrels of oil and 1.49 to 2.65 Tcf of natural gas.

Sale 218 incorporates a number of lease terms to ensure fair return, provide incentives for diligent development, and help reduce the amount of leased acreage that is warehoused and left unexplored.

Gazprom Neft starts drilling in Iraqi Badra deposit

Russia's OAO Gazprom Neft, the oil unit of state gas giant OAO Gazprom, said Friday it has started drilling the first appraisal well in the Iraqi Badra oil deposit, operated by the company.
Drilling is expected to be completed in April 2012.
Based on the results, a plan for the most efficient way for development of the deposit will be drawn up, the company said.
"The results of the initial appraisal wells will allow us to better understand the geology of the location, produce a definitive operating plan and move to commercial production of at least 15,000 barrels of oil a day in August 2013," Vadim Yakovlev, first deputy chief executive, said in a statement. Drilling is expected to be completed in April 2012.
Based on the results, a plan for the most efficient way for development of the deposit will be drawn up, the company said.
"The results of the initial appraisal wells will allow us to better understand the geology of the location, produce a definitive operating plan and move to commercial production of at least 15,000 barrels of oil a day in August 2013," Vadim Yakovlev, first deputy chief executive, said in a statement.

Rockhopper spuds well at Beverley prospect

Rockhopper announced that the 14/15-4 well was spudded, by Rockhopper as operator, at 08.15hrs GMT on November 28, 2011.

The Well is situated on License PL004b in which Rockhopper will earn a 60% interest by drilling 14/15-4. The Well is designed to investigate reservoir presence and hydrocarbon charge towards the southernmost mapped limit of the Sea Lion field and is located approximately 12.1 km to the south west of the 14/10-2 discovery well and 6.3 km to the south of well 14/10-9.

The well is also an exploration well on the Beverley prospect.

The company intends to drill to target depth ("TD") then subsequently sidetrack to core should significant hydrocarbon charged reservoir be encountered in either the Sea Lion Main Complex or Beverley. Initial drilling and logging operations are expected to take approximately 20 days and a further RNS will be issued prior to commencing any sidetrack.

The company intends that 14/15-4 will be the final well it operates during the current drilling campaign.

EnQuest discovers oil at Crathes well

Ithaca announced that the Crathes exploration well, 21/13a-5, encountered a 52ft light oil column in excellent quality reservoir sands. The well is currently undergoing wireline logging, before drilling ahead to intersect the Moon prospect.

The recent corporate acquisition of Challenger Minerals (North Sea) Limited by Ithaca included a dual target exploration opportunity in Block 21/13a alongside the Scolty and Torphins undeveloped discoveries. The primary exploration target is the Crathes prospect which lies within the Palaeocene section. The secondary target is the Moon prospect within the deeper Upper Jurassic section.

The operator, EnQuest, will evaluate the potential commerciality of the joint development of Scolty, Torphins and Crathes/Moon.

The Joint Venture Partners are: Enquest, operator (40%), Wintershall (E&P) (50%), Ithaca (10%).

Breitling Oil and Gas announces completion underway in Garvin County, OK

IRVING, Texas -- Breitling Oil and Gas Corporation, an independent exploration and production company based in Irving, Texas, announced that the Breitling-Butterwash #2 is being completed as a possible oil and gas producer after reaching a total vertical depth of 4,700 ft.
The Breitling-Butterwash #2 was the second well in Breitling's Butterwash Paul's Valley Uplift prospect. The well was located on the Richardson anticline in south-central Oklahoma. The Breitling-Butterwash #2 targeted the Simpson Sands including the Basal Oil Sandstone.
Breitling Oil and Gas CEO Chris Faulkner stated, "We are excited about the potential in the Breitling-Butterwash #2 within the Richardson anticline."