According to OPEC's annual statistical bulletin, Venezuela's crude oil proven reserves surpassed those of Saudi Arabia in 2010. Venezuela's reserves increased 40% year-on-year to reach 296.5 billion barrels, higher than Saudi Arabia's 264.5 billion barrels. (OPEC normally relies on its members' assessments for its statistical data.) This analysis also assumes the accessibility and quality of oil in the Orinoco Belt's reserves in the East Venezuela Basin Province, which encompasses approximately 19,000 square miles.

In the long run, the reserves boost may empower members of the group that favor higher prices, including Iraq and Iran. Their proven reserves were also upgraded by 143.1 billion barrels and by 151.2 billion barrels, respectively.

However, there are doubts as to whether all of Venezuela's heavy oil discoveries are economically viable using current production methods. Political uncertainty is also a concern for Western nations, due to the socialist ideology of the country's president, Hugo Chavez.

Venezuela's intensifying electricity blackouts and declining oil revenues since 2008 have forced the president to devalue the country's currency in 2011. Earlier this year Venezuela awarded oil blocks to Chevron and Rep-sol YPF, seemingly signaling a turnaround by the president, who nationalized the energy sector in 2007.

—Larry Prado

Canada

According to Nickle's Petroleum Explorer, Yoho Resources Inc. has reported successful Montney drilling and completion operations at Umbach/Nig Creek, British Columbia. Yoho re-entered #4-H a-A41-A/94, drilled a 1,050-meter horizontal section and completed it with an eight-stage, 16-perforation plug-and-perf. The well was then production-tested at various choke settings and flowing pressures over a six-day period. During the flow test, the well produced at a stable rate of 4.2 million cu. ft. per day at a flowing pressure of 531 psi on a 48/64-in. choke setting with 55 bbl. per day of free condensate. The well was then flowed up-casing with a final rate of 6.3 million cu. ft. per day at a flowing pressure of 939 psi on a 38/64-in. choke, yielding 78 bbl. per day of free condensate. The well is currently shut in for pressure build-up. According to the Calgary-based company, liquids production with the natural gas is expected to be 25 to 30 bbl. per million cu. ft. of gas, with approximately 40% to 50% of the liquids being condensate.

Newfoundland

According to Toronto-based Shoal Point Energy, a petrophysical analysis from #3K-39, a well in offshore Newfoundland's Green Point shales, confirmed a thick section of producible unconventional light oil. The discovery in western Newfoundland has significant hydrocarbon shows between the surface casing shoe at 400 meters measured depth and current drilled depth of 1,745 meters. The test was conducted across a fracture set in the interval at 1,287-1331.1 meters at approximately 924 meters true vertical depth. It produced 2.67 cu. meters of load fluid over a combined flow period of nine minutes.

Brazil

Petrobras announced new discoveries of oil and gas in the Espírito Santo Basin in Concession Area BM-ES-23, Block ES-M-525. These new discoveries are at water depths of about 1,900 meters, and occurred while drilling #1-BRSA-939-ESS and #1-BRSA-936D-ESS. A third, recent discovery was reported after drilling #1-BRSA-926D-ESS but additional details were not available. Rio de Janerio-based Petrobras is operator of the consortium for exploration of Block BM-ES-23 (65%), which includes Shell Brasil Petroleo Ltd. (20%) and Inpex Petroleo Santos Ltd. (15%).

Brazil

The Repsol-Sinopec joint venture and its partners, Statoil and Petrobras, announced the discovery of good quality oil at the #1-REPF-11A-RJS exploration well (Gavea). According to the joint-venture partners, the find is the most significant to date in the pre-salt area of the Campos Basin. The well is in Block BMC-33, in a water depth of 2,708 meters, and was drilled to 6,851 meters. Repsol-Sinopec is a joint venture of Repsol Brazil and Sinopec, with Repsol holding 60% interest and Sinopec the remaining 40%. Madrid-based Rep-sol is operator of Block BM-C-33 and the Gavea discovery well, with 35% interest in partnership with Statoil, holding 35%, and Petrobras, with the remaining 30%.

Brazil

OGX Petroleo encountered hydrocarbons in the Santonian section of #1-OGX-47-RJS in the BM-S-59 block, in the Santos Basin, offshore Brazil. A hydrocarbon column of approximately 131 meters was reported in the sandstone reservoirs of the Santonian section, with about 51 meters of net pay. The new discovery is about 3 kilometers from the Natal accumulation, which was discovered at #11-OGX. The #1-OGX-47-RJS (Maceio) was drilled in water depth of some 185 meters. Rio de Janeiro-based OGX holds a 100% working interest in this block.

Brazil

In Statoil's Peregrino South Field, the company reported two discoveries with sidetrack wells drilled on the Peregrino South structure. According to the Stavanger-based company, recoverable volumes in the pre-salt Peregrino South Field are now expected to range between 150 million and 300 million bbl. of oil equivalent. These increased reserves bring the second development phase of Peregrino Field considerably closer. The two sidetrack wells were drilled in 120 meters of water and targeted additional pre-salt reservoirs south of Peregrino Field in the Campos Basin, Block BM-C-7. Oil production began in April 2011 from Peregrino Field, with an estimated 300- to 600 million bbl. of recoverable reserves. Statoil is operator of Block BM-C-7, Peregrino Field and the discovery wells with 60% interest in partnership with Sinochem, which holds the remaining 40%.

Falkland Islands

London-based Rockhopper Exploration's latest offshore Falkland Islands appraisal confirmed that #14/10-05 flowed at a stabilized rate of 5,508 bbl. per day with a maximum flow rate of 9,036 bbl. daily during testing. Further appraisal drilling will be carried out to define the extent of the Sea Lion resource. Downhole drillstem tests were performed on two of the three sands, making up the 46 feet of net pay in the well. These two sands had net pay of 26 feet and 15 feet, indicating that they contributed an additional 800 bbl. per day of flowrate using the same flow-test techniques. The rig will now move on to drill #14/10-6, the third appraisal probe within the discovery area. Rockhopper holds a 100% interest in the Sea Lion discovery on License PL033.

Oman

BP is planning to drill up to 300 gas wells in central Oman's Block 61. The company has discovered four gas reservoirs after drilling three wells; the reservoirs are estimated to contain approximately 20- to 30 trillion cu. ft. of gas. The concession also contains numerous other oil and gas fields, and BP plans to invest up to $15 billion over 10 years to develop the tight gas fields, enhance output from others, and capture gas that is currently being flared. The London-based company will submit a field development plan to the Omani government in 2012 for well development and a 1.2-billion-cu.-ft.-per-day processing plant scheduled for production in 2017.

Thailand

Salamander Energy reported a material oil discovery on the East Terrace Prospect in the Thai sector of the Gulf of Thailand in Block B8/38. A long-reach well was drilled to 2,961 meters to test the East Terrace fault block. According to the company, the well encountered approximately 35 meters of net oil pay within three zones. Over six meters of net pay was encountered in the upper T5 sandstone interval. In the deeper T4 interval (the main reservoir unit in the Bualuang oilfield), an additional 18 meters of net oil pay was encountered, while in the lower T3 interval, a further 11 meters of net pay was found. Results from a full evaluation program including pressure measurements and fluid sampling over the intervals of interest confirm the East Terrace is a separate accumulation to Bualuang Field. Preliminary evaluation of the data indicate a mid-case estimate of 50 million bbl. of oil in place and a likely recoverable volume in the range 8- to 14 million bbl. Salamander is operator of Block B8/38 with 100% interest. The company is based in London.

Australia

Sentry Petroleum Ltd. reported that a coal-seam gas well, #1-CSG Talundilly, in Queensland, Australia's Block ATP, encountered 12.7 meters of net coal that were canistered immediately for gas-desorption measurements. According to the company, gas was observed from the coal cores, but it plans additional desorption tests before determining commerciality of the deposit. The well targeted the Winton coal and gas shale formation and was cored from 200 to 400 meters. It was drilled to the target depth of 550 meters; wireline logs were run to confirm the coal thickness. The rig is now moving to a nearby location to drill appraisal wells. Denver-based Sentry has also reacquired all of its oil, gas and coal-seam gas rights in ATP865 and ATP866 in Queensland from Sino American Oil. They were granted to that company in March. Sentry now holds 100% interest in all oil, gas and coal-seam gas interests over a permit area of approximately 17,700 sq. kilometers. Sentry is operator of Block ATP862 and #1-CSG Talundilly, with 100% interest.