Calling it one of the largest offshore discoveries since the 1980s, Lundin Petroleum increased its North Sea Avaldsnes production estimate to 800 million to 1.8 billion barrels of recoverable oil. Recent appraisal well results from Statoil’s discovery well at Aldous Major South were used when updating the resource range.

The operator of PL 265, Statoil, announced an estimated recoverable resource range of 400- to 800 million barrels (gross) for Aldous Major South. The combined Avaldsnes/Aldous Major South discoveries therefore have a gross contingent resource range estimate of 1.2- to 2.6 billion barrels of recoverable oil.

The contingent resource range was independently audited by Gaffney, Cline & Associates. Avaldsnes was discovered last year with #16/2-6. The Avaldsnes and the recent Aldous Major South discovery wells and subsequent Avaldsnes appraisal wells seem to demonstrate that Avaldsnes and Aldous Major South are connected with the same oil-water contact, pressure regime, oil type, and reservoir.

Additional appraisal wells will be drilled in PL501 to define the recoverable resource range. The #16/5-2 will be drilled in the southwestern part of the Avaldsnes discovery in late 2011 and at least three more appraisal wells will be drilled in 2012.

—Larry Prado

1 Brazil

In the deepwater Sergipe-Alagoas Basin, offshore Brazil, Petrobras has a new oil and gas discovery. The oil ranged from 32- to 43-degree-gravity API. The discovery was confirmed following a formation test in Block SEAL-M-426. According to Petrobras, excellent porosity conditions were confirmed in the reservoirs located in depths between 5,050 and 5,400 ft. The well was drilled in 2,341 ft. of water and is the first exploration well to be drilled in this part of the sedimentary basin. The #1-BRSA-851-SES (Barra) has established a new petroleum province in the Sergipe-Alagoas Basin. It was drilled to 19,384 ft. Rio de Janeiro Petrobras is the operator of Block SEAL-M-426, BM-SEAL-11 and the Barra discovery with 60% interest in partnership with IBV Brasil (a joint venture of Bharat Petroleum and Videocon Industries), which holds the remaining 40%.

2 Egypt

Apache Corp. of Houston announced results of two new discoveries in the Faghur Basin in Egypt’s Western Desert. A production test of the Cretaceous Alam El Buieb (AEB) sand at #1-X Tayim South 1-X flowed 8,196 bbl. of oil per day. During a completion test at the #90-AG development well in the Adu GharadigField, the discovery flowed 7,614 bbl. of oil and 1.5 million cu. ft. of gas per day from Lower Bahariya. The #90-AG encountered 189 ft. of pay in six separate zones and was completed with 18 ft. of perforations from a total 84 net ft. of oil pay in the Lower Bahariya: the well is currently producing 5,200 bbl. of oil and 5 million cu. ft. of gas per day. Apache owns a 100% contractor interest and has drilled 11 successful wells in Abu Gharadig Field.

3 Cyprus

At the Offshore Cyprus Block 12 concession, Noble Energy Inc. is reporting a significant gas discovery. According to local sources, Noble’s exploration well found gas, and the discovery is 30% to 40% larger than pre-drilling estimates. Noble began drilling the Cyprus A prospect in mid-September. According to Cyprus’ Minister of Commerce, microscopic bubbles of gas are coming to the surface and drilling is only about halfway to the target depth (4,000 meters), where additional hydrocarbons shows are expected. Noble will perform gas-quality appraisal and testing. Noble, based in Houston, is the operator of Cyprus’ Block 12 and the Cyprus A exploration well with 100% interest.

4 Mozambique

Anadarko Petroleum Corp. reported more pay in the Camarao prospect in the Offshore Area 1 in Rovuma Basin, Mozambique. The well encountered about 240 ft. of gas pay in an excellent-quality reservoir, confirming static pressure connectivity with the partnership’s previously announced Windjammer and Lagosta discoveries. In addition, the well hit 140 ft. of gas pay in shallower Miocene and Oligocene sand packages not previously encountered in wells. The well was drilled to 12,630 ft. in a water depth of 4,730 ft. and is approximately eight kilometers south of the Windjammer discovery and approximately 17 kilometers north of the Lagosta discovery. Houston-based Ana - darko is the operator of Offshore Area 1 with a 36.5% working interest in partnership with Mitsui E&P Mozambique Area 1 (20%); BPRL Ventures Mozambique (10%); Video-con Mozambique Rovu - ma 1 (10%); and Cove Energy Mozambique Ro - vuma Offshore (8.5%). Empresa Nacional de Hi drocarbonetos EP’s 15% interest is carried through the exploration phase.

5 Kazakhstan

A Max Petroleum Plc appraisal well, #4-Uytas (#4-UTS), in its Block A Uytas Field, onshore Kazakhstan, has reached a total depth of 849 meters. Electric logs indicate 36 meters of potential net oil pay in the Cretaceous section at depths ranging from 30- to 158 meters, consisting of six sandstone reservoirs of excellent quality with porosities ranging from 25% to 35%. According to the company, the results include 16 meters of potential net pay in the shallow Cretaceous section at 30 to 57 meters. Significant oil shows were recorded continuously from depths of 20 to 167 meters, appearing to confirm the oil column seen in the original #1-UTS discovery well. Max Petroleum’s headquarters are in London.

6 Russia

An oil discovery was reported by Dubai-based Exillon Energy at its Siberian #11-I exploration well in the company’s operated East EWS I Field in Russia’s Komi Republic. According to Exillon, the well flowed water-free oil naturally to the surface with a flow rate of 768 bbl. per day when tested on a 10-millimeter choke. The well was drilled directionally 1.3 kilometers to the west from the existing well pad. The Jurassic P reservoir at 1,834 meters confirmed 7.3 meters of effective net oil pay within the Jurassic and 3.1 meters of oil-water transition zone. Exillon is the operator of East EWS I Field with 100% interest.

7 Sri Lanka

An offshore Sri Lanka (Gulf of Mannar) gas discovery in has been reported in the Mannar Basin by Cairn Energy Plc of Edinburgh, Scotland. The #1z/CLPL-Dorado-91H reportedly had a gross 25-meter hydrocarbon column in a sandstone at 3,043-68 meters as interpreted from logs and measurement-while-drilling operations. The predominantly gas-bearing zone has some additional liquid hydrocarbon potential. The Block SL 2007-01-001 discovery well was the first of a planned three-well campaign based on its acquisition of 1,750 sq. kilometers of 3-D seismic data. Three additional wells are planned with two additional wells under option. If the discovery proves to be commercial , it will be Sri Lanka’s first such discovery. Previously, the government reported that seismic data indicated that a 30,000-sq.-kilometer area of the Mannar Basin has potential of more than a billion bbl. of oil. The block was awarded to Cairn in 2008 with 100% interest and operatorship.

8 Papua New Guinea

A Papua New Guinea exploration well by Sydney-based Oil Search Ltd. reached the targeted Toro sandstone. The #10-Hedinia ST2 is in Block PDL2 and was drilled to 3,850 meters. Elevated gas readings and oil shows were observed and the preliminary log interpretation indicates that an oil column of approximately 20 meters has developed in the upper Toro sandstone. Additional pressure testing and logging are planned to confirm the sandstone’s fluid content. A sidetrack could establish the up-dip potential of the Hedinia forelimb. Oil Search is the operator of Block PDL2 and #10-Hedinia ST2 with 60.05% interest in partnership with Merlin Petroleum Co., 18.69%; Ampolex (PNG Petro - leum), 11.61%; Petroleum Resources Kutubu, 6.75%; and Merlin Pacific Oil, 2.91%.

9 Australia

Calgary-based PetroFrontier completed a horizontal exploratory well, #2Hst1-Baldwin, in Northern Territories, Australia. According to Oil & Gas International, it is the first horizontal well in the Lower Arthur Creek Hot shale in the southern Georgina Basin. The #2Hst1-Baldwin is in the 3.16-millionacre EP103 license area. The well was drilled to 1,948 meters and remained within the main target zone in Lower Arthur Creek Hot shale for 875 meters while directionally drilling up a regional dip of 1.7 degrees. Hydrocarbon indicators were recorded along the horizontal section, with elevated gas readings and evidence of heavier hydrocarbons. Total gas recorded at #2Hst1-Baldwin averaged 240 units over the entire horizontal section, commonly peaking above 1,000 units with maximum recorded values over 2,500 units. Conventional gas-ratio analysis indicates very wet gas to oil for most of the well with occasional oil signatures in places. PetroFrontier is suspending #2Hst1-Baldwin and is moving the rig about 60 kilometers northwest to drill #2-MacIntyre in the northeastern corner of EP127. PetroFrontier has a 100% working interest and is operator of the license area.

10 Australia

An exploration well by Linc Energy Ltd., #1-Arck, hit a 124-meter shale zone in South Australia’s Arckaringa Basin. The discovery is in the PEL 122 permit area. Linc reported that it encountered the pay zone (Stuart Range) at 854 meters. The formation encompasses an area of about 1,150 sq. kilometers and extends into the nearby PEL 121 permit area. According to the company, the most prospective black shale/siltstone within the deposit is around 70 meters thick between 899 and 970 meters. A preliminary analysis indicated that it has the potential for 25 to 45 liters per ton. A nearby exploration well, #1-Wirrangulla Hill, found Stuart Range shale thicknesses similar to #1-Arck, along with oil fluorescence in its upper geological sequences. Brisbane-based Linc is the operator of PEL122 and its other Arckaringa Basin permits with 100% interest.