The Beetaloo Basin in Northern Territory, Australia, could be the next sweet spot for unconventional and conventional hydrocarbon production.

The basin’s attributes: It’s a multimillion-acre site in a politically and economically stable country, with existing pipeline access, currently estimated recoverable resources of 19 billion barrels of oil and 64 trillion cubic feet of gas at depths between 5,000 and 8,500 feet, and energy-hungry neighbors.

Falcon Oil & Gas Ltd. of Denver, the sole operator of more than 7 million acres under license in the remote basin, is in the process of proving that the Kyalla and Velkerri shales are Southern Hemisphere rivals to Marcellus, Haynesville and Barnett shales. The high total-organic-content shales, Kyalla (at about 5,000 feet) and Velkerri (at about 8,500 feet), are typically 2,600 feet thick across the basin. The shales are separated by a possible conventional formation, the Moroak sandstone, which is more than 1,000 feet thick and has conventional porosity and low-permeability intervals.

Testing will begin in 2010, after the rainy season, in a previously drilled exploration well, #1 Shenandoah. Falcon geologists are analyzing core samples from mining operations that used to dominate the resource-rich Australian state.
Australia’s energy-hungry neighbors include China, India, Japan and South Korea.

1. Colombia
Ecopetrol S.A. of Bogota has confirmed that three hydrocarbon intervals were found at #1-Tempranillo North in the Colombian township of Aipe, Huila. The discovery in the Pijao-Potrerillo area came after drilling though two layers of the Caballos formation. The upper-layer sands have two intervals below 8,500 ft., with a net hydrocarbon thickness of 40 ft. Lower-layer sands are located below 9,700 ft. and had a net hydrocarbon interval of 16 ft. After drilling to 10,235 ft., drillstem tests showed 24-degree API oil, an average volume of 1,000 bbl. per day and a water cut of 1%.

2. Colombia
An additional discovery at #14-Quifa was announced by Pacific Rubiales of Toronto. The #14-Quifa is an appraisal well for the #5-Quifa discovery on Prospect E in the Quifa Block, in the Llanos Basin. The top of the Carbonera basal sands was found at true vertical depth of 2,991 ft. and the oil-water contact was at 3,060 ft. true vertical. The oil column was 69 ft. at the well, and log analysis indicates net pay of 33 ft. with 32% average porosity. The Quifa-14 well was deviated 60 degrees from the #5-Quifa surface location and was drilled about one mile to the southwest. The company plans to complete the well as a deviated-hole producer.

3. Brazil
Based on drillstem testing and 3-D seismic interpretation at its #1-OGX-3-RJS discovery in the Campos Basin, OGX Petroleo & Gas Participacoes SA of Rio de Janeiro estimates that recoverable oil volume will be between 500- and 900 million bbl. of oil. The well is in the shallow waters of the BM-C-41 Block in the southern part of the basin. Drilled to 4,084 meters, the discovery encountered Albion carbonate reservoirs. Oil gravity is estimated at 19 to 20 degrees API. Test data, pressures and permeability and porosity characteristics indicate high rates of potential production. OGX holds a 100% working interest in the block and plans to develop the find through horizontal wells.

4. Ghana
In the deepwater Tano Block, offshore Ghana, Tullow Oil of London encountered a hydrocarbon column at its #2-Tweneboa appraisal well. The well lies 6 kilometers southeast of the #1-Tweneboa discovery and hit a gross reservoir interval of 153 meters, holding 32 meters of net hydrocarbon pay, and a 17-meter oil-bearing zone below a 15-meter gas/condensate zone. According to the company, a combined 350-meter hydrocarbon column has been established between the lowest known oil in #2-Tweneboa and the top of gas/condensate at #1-Tweneboa. E&P Daily reports that the company plans additional drilling, wireline logs and reservoir fluid sampling.

5. France
Toreador Resources Corp. of Paris has confirmed a 5-meter reservoir within a 50-meter oil column in the target Dogger formation in the Rigny le Ferron permit area, southeast of Paris. Torreador’s #1D Garenne LGA flowed limited amounts from one of the two Dogger horizons. Original estimates indicated that the Dogger may have at least 6 million bbl. of oil in place. The current results from this well will be modeled and calculated as part of a development plan for La Garenne. According to Toreador, #1D Garenne LGA well confirms a porous and hydrocarbon-bearing reservoir with a localized low-permeability area at the crest of the structure. This geologic feature is seen in other fields in the basin. A new exploratory test, #1D-LGA, is under way.

6. Greece
On offshore Greece well—the first in 14 years—has been brought on production by Athens-based Aegean Energy. According to E&P Daily, Aegean completed the 18,045 ft. #1 EA-H in offshore Epsilon Field. Early estimates indicate the field is producing 3,000 bbl. of oil per day, bringing Aegean’s total daily production up to 5,000 bbl. of oil per day. Total estimated field reserves exceed 30 million bbl., and the company plans more drilling and field development. Epsilon Field was discovered by #1-Epsilon with oil in Miocene sandstones at a depth of about 9,187 ft. There are three areas in Epsilon Field: Epsilon Main, Epsilon North and the Prinos West Flank area.

7. Uganda
Tullow Oil’s #2-Kasamene appraisal well in Block 2, Uganda, hit 128 ft. of net oil pay and 26 ft. of net gas pay within a 433-ft. gross interval. The appraisal well is near the #1-Kasamene discovery and was drilled to a total depth of 2,841 ft. According to Tullow, reservoir quality is excellent and net pay thickness is the largest encountered in the Butiaba area to date. The well will be suspended as a future producer for Phase 1 of the Albertine Rift development. Four more appraisal wells will be drilled in 2010 to delineate the other significant discoveries. Tullow has equity in three licenses in the Lake Albert Rift Basin in Uganda. Tullow operates Block 2 with a 100% stake and has a 50% interest in Blocks 1 and 3A, which are operated by Heritage Oil (50%).

8. Mozambique
Anadarko Petroleum Corp. of Houston reported that it found 480 net ft. of gas pay at its Windjammer offshore exploratory well in the Rovuma Basin, Mozambique. The pay is in high-quality reservoir sands, with a gross column of more than 1,200 ft. The Windjammer well was drilled to approximately 14,000 ft. in about 4,800 ft. of water. Anadarko plans to drill an additional 4,100 ft. in the well to test deeper objectives and analyze geologic information. It expects to drill up to four more wells in the basin in 2010. Operator Anadarko holds a 43% paying interest in the well. Co-owners are BPRL Ventures Mozambique B.V. (11.75%); Cove Energy Mozambique Rovuma Offshore Ltd. (10%); Mitsui E&P Mozambique Area 1 Ltd. (23.5%); and Videocon Mozambique Rovuma 1 Ltd. (11.75%). Empresa Nacional de Hidrocarbonetos’ 15% interest was carried through the exploration phase.

9. Egypt
Melrose Resources Plc announced that its #1 South Damas exploration well has been successfully drilled to test a prospect in the Sidi Salim formation in Egypt’s South East Mansoura concession. The exploratory well found 76 ft. of net gas pay, hitting the top reservoir at a depth of 4,345 ft. The preliminary estimate of the discovery is 30 billion cu. ft. of gas equivalent per day. The well will be completed and tied back for production to existing facilities. It is expected to be onstream within six months at an initial rate of more than 12 million cu. ft. of gas equivalent per day. The Edinburgh-based company owns a 100% working interest and plans to acquire additional 2-D seismic to drill another Sidi Salim prospect in the South East Mansoura concession, Tall Rak.

10. Dubai
Dubai reported the discovery of a new Persian Gulf offshore oil field. Al-Jalila Field is east of Rashid Field, about 45 miles off Dubai’s gulf coast. Estimates of the field’s reserves or production capacity will be announced once studies are completed. The field will begin commercial production within a year, according to the chairman of government-owned Dubai Petroleum Establishment. Dubai’s offshore fields are operated by London-based Petrofac. Dubai’s three other main producing fields are Fateh, southwest Fateh and Falah. The country produces about 50,000-70,000 bbl. of oil per day.

11. Kazakhstan
Upper-zone testing by Tethys Oil at its #01AKD discovery in Kazakhstan yielded restricted-rate oil flows of more than 5,400 bbl. per day. Combined with recent testing on the lower zone, the #01AKD flowed oil at a combined rate in excess of 6,800 bbl. per day. The new Tethys discovery is on the Akkulka Exploration License and Contract area west of the Aral Sea. Stockholm-based Tethys currently holds a 100% interest in substantial lands in this area, totaling more than 2.7 million acres. The company also reached conditional agreement to acquire 100% of the 2.8-million-acre Aral Vostochniy Exploration Contract east of and adjacent to the Aral Sea.