At the Offshore Europe 2011 Oil and Gas Conference and Exhibition, independent analysts from Det Norske Veritas told attendees that the age of cheap oil is coming to an end and global energy demand will increase by 19% by 2020.

The company’s “Technology Outlook 2020” report says that in the last 25 years, only one barrel of oil has been discovered for every four barrels consumed. World oil consumption is about 85 million barrels per day with production never expected to exceed 95 million barrels per day, and companies will have to explore more costly, lower-quality and unconventional oil sources while improving technology.

The report goes on to say that the industry will have to prepare to drill more demanding wells in deep water, complex reservoirs and the Arctic. According to the report, 25% of the world’s remaining reserves are potentially untapped in the Arctic, and new technology must deal with the harsh operating conditions while being environmentally responsible.

The report maintains that horizontal drilling and hydraulic fracturing will spread, unconventional gas will change the global gas market and gas demand will double that of oil, but unconventional oil production will remain limited due to environmental challenges and costs.

—Larry Prado

1 Canada

A new pool horizontal discovery was reported by Calgary-based Artek Exploration Ltd. The #5-11 Hz Artek 2011 tested flowing 2,040 bbl. of oil equivalent per day and the #6-3 Hz Artek 2010 produced 1,895 bbl. of oil equivalent per day. The new Doig producers are in the company’s Inga prospect in eastern British Columbia. The most recent well, #1-Arktek Fireweed, flowed at a restricted rate of 1,070 bbl. of condensate per day after a five-day extended clean-up test. The well was drilled with a 665-meter horizontal lateral and completed with a seven-stage hydrocarbon fracturing program.

2 Colombia

In the Llanos Basin in Colombia, PetroMagdalena subsidiary Alange Energy discovered a new oil field at its exploration well, #1-B Copa. Alange Energy reported that the well flowed 1,045 bbl. of 39.3-degree-gravity API light oil per day during a three-day production test. The #1-B Copa was directionally drilled to 6,862 ft. The top of the C5 and C3 Carbonera sections were encountered at 5,251 ft. and 5,045 ft., respectively. Well logs indicate a total of 41 ft. of net oil sand, 24 ft. in three C5 sands, and 17 ft. in two C3 sands. Porosities range from 24% to 28% in the C5 and 27% to 29% in the C3 sands. The rig is now moving to spud exploration well #1-AS Copa. Bogota-based Alange Energy is operator of the Cubiro Block with 60.5% interest, in partnership with PetroMagdalena, holding the remaining 39.5%.

3 Argentina

According to Oil and Gas International, Americas Petrogas and partner Gran Tierra Energy have made a significant oil discovery with the first of three exploration wells being drilled on the Rinconada Norte Block in Argentina’s Neuquen Basin. The #1004-RNx flowed 1,023 bbl. of oil equivalent (944 bbl. of oil and 471,800 cu. ft. of gas) per day from two Precuyo formation intervals at 982 to 992 meters and 1,022 to 1,032 meters. The oil is 29.6-degree-gravity API, similar to crude oil produced from the equivalent formation in Petrogas’ Medanito Sur Block. Calgary-based Americas Petrogas Argentina is operator of the Rinconada Norte Block and the discovery well with 65% working interest, in partnership with Gran Tierra Energy, holding a 35% working interest.

4 French Guiana

An oil discovery was announced by Tullow Oil Plc at the Zaedyus exploration well, #1-GMES, offshore French Guiana. The well hit 72 meters of net oil pay in two turbidite fans in good quality reservoir sands. The #1-GMES was drilled to 5,711 meters in 2,048 meters of water in the Guyane Maritime license. Tullow plans to deepen the well to about 6,000 meters and run a sidetrack to obtain cores over the reservoir sections. According to Tullow, the objective of the Zaedyus well was to test whether the Jubilee play, successfully established in West Africa, was mirrored on the other side of the Atlantic. Lon-don-based Tullow operates the license with 27.5% interest in partnership with Shell, 45%, Total, 25%, and Northpet, 2.5%, a 50/50 joint venture of Northern Petroleum and Wessex Exploration.

5 Brazil

After completing drillstem tests at #1-OGX-47-RJS (Maceio), a shallow-water gas discovery, OGX reported that the well in Block BM-S-59 encountered a hydrocarbon column of approximately 131 meters in the sandstone reservoirs of the Santonian section and about 51 meters of net pay. In addition to the gas discovery, the test confirmed that the hydrocarbon column is also composed of approximately 20% condensate of about 50 degree-gravity API oil. Cumulative testing in three different well intervals indicates that the well has the potential to produce 35- to 88 million cu. ft. of gas per day. The Maceio well was drilled to about 5,000 meters. Rio de Janerio-based OGX holds a 100% operating interest in Block BM-S-59 and the Maceio well.

6 Egypt

The Badr El Din Petro - leum Co. (Bapetco) discovered a new gas field in the Western Desert of Egypt that is capable of producing 12 million cu. ft. of gas per day. The discovery is on the Badr El Din Concession. The company reported that the field will be able to produce about 5,000 bbl. per day of condensed gas with production expected to begin this month. To date, the Cairo-based company has drilled 34 wells and intends to drill another 44 exploration and development wells during 2011-12. Bapetco is a 50/50 joint venture of Egyptian General Pet - roleum and Royal Dutch Shell.

7 Iraq

A new Triassic discovery was reported by London-based Gulf Keystone Petroleum Ltd. at the #2-Shaikan appraisal well about nine kilometers southeast of the #1-Shaikan discovery well on the Shaikan Block in Iraq’s Kurdistan region. The #2-Shaikan was drilled to 3,300 meters in middle Triassic. After reaching total depth, a flow test was run in the newly discovered Kurre Chine C zone over an 80-meter interval (3,195-3,275 meters). According to the company, the zone is highly pressured and correlates with the high-pressure zone penetrated at the bottom of #1-Shaikan. The Kurre Chine C flow test at #2-Shaikan had variable flow rates of up to a maximum recorded rate of 4,450 bbl. per day of 36-degree-gravity API oil with associated gas of 813,000 cu. ft. per day when tested on a 36/64-in. choke. Additional testing is planned for Triassic and Jurassic zones at #2-Shaikan. The company holds a 75% interest in the Shaikan Block and wells. Kalegran, a subsidiary of Magyar Olaj-es Gazipari, the Hungarian national oil company, has a 20% interest, and Texas Keystone has the remaining 5%.

8 Azerbaijan

According to Oil and Gas International, Paris-based Total discovered a major gas field in Azerbaijan’s Absheron Block in the Caspian Sea. The #2-X Absheron was drilled in 500 meters of water and encountered more than 500 ft. of cumulated net gas pay within high-quality sands on the northern flank of a 270-sq.- kilometer structure. Total has currently drilled to 21,490 ft. and plans to explore deeper objectives. Total’s subsidiary, Total EP Absheron, is operator of the Absheron Block with 40% interest, in partnership with Azerbaijan’s national oil company, the State Oil Co. of the Azerbaijan Republic, holding 40% interest, and GDF Suez, with the remaining 20%.

9 Kazakhstan

A flow test in Kazakhstan’s onshore Zharkamys Block produced oil at a stabilized rate of 300 bbl. per day during well cleanup operations. Condor Petroleum Inc.’s pre-Caspian basin well, #3-Taskuduk West, had a five-meter net pay interval at 1,115-20 meters that yielded 35-degreegravity API oil and no water. The fluid and flow data information gathered during the initial flow periods will be used to plan longer-term production tests for Taskuduk West Field. For production testing, a downhole pump will be installed at #3-Taskuduk West to enhance the initial production flow rates. The #3-Taskuduk West well was the first of a three-well program on the Zharkamys Block, including #1-Shoba and #2-Shoba. Condor Petroleum is based in Calgary.

10 Mozambique

In Mozambique’s Offshore Area 1 of the Rovuma Basin, Houston-based Anadarko Petroleum’s appraisal well, #2-Barquentine, hit more than 230 net ft. of gas pay. The #2-Barquentine was the first appraisal well in the Windjammer, Barquentine, and Lagosta complex, which is estimated to hold a minimum of 6 trillion cu. ft. of recoverable gas resources. The pay zone was in high-quality Oligocene-age reservoirs. The #2-Barquentine was drilled to approximately 13,500 ft. in 5,400 ft. of water. According to Anadarko, results indicate that the #2-Barquentine and nearby #1-Barquentine Oligocene reservoirs are in static pressure communication between the wells. Anadarko operates the 2.6-million-acre Offshore Area 1 with a 36.5% working interest. Co-owners include Mitsui E&P Mozambique Area 1 (20%), BPRL Ventures Mozambique (10%), Videocon Mozambique Ro vuma 1 (10%), and Cove Energy Mozambique Rovuma Offshore (8.5%). Mozambique’s national oil company, Empresa Nacional de Hidrocarbonetos, holds a 15% interest carried through the exploration phase.