According to Repsol YPF, the recoverable unconventional oil and gas resources found within its license areas in the Vaca Muerta Basin in Argentina are approximately 23 billion barrels of oil equivalent. Finding and developing Argentina’s shale oil and gas will require thousands of additional wells and billions of dollars, according to the company. Argentina would need at least another 100 rigs and would have to make major improvements in every sector of its petroleum industry.

This also is good news for the oilfield chemical supplies industry, as unconventional resource development requires stimulation/hydraulic-fracturing supplies.

According to the IHS Chemical 2012 Oil Field Chemicals Report, which covers future projections for supply, demand, capacity and trade in the global oilfield chemicals markets for 2010 to 2015, world demand for these chemicals is expected to grow at an average rate of 3.5% during the next five years, with sales expected to increase to almost $19 billion by 2015.

Brazil is currently the largest chemical consumer in Latin America with $1.8 billion in sales. The development of Argentina’s unconventional resources may propel it to the top of the oilfield chemical consumer list, just as Argentina has challenged the U.S. for a top spot on the technically recoverable reserves list.

—Larry Prado

1 Mexico

Pemex reported an oil and gas discovery in the Gulf of Mexico. The #1-Puskon was drilled in 2,122 ft. of water and encountered two intervals between 23,294 ft. and 24,426 ft. From rock samples and log analysis, Pemex also identified a 2,598-ft. zone of Paleocene rocks with good porosities. The well was drilled to evaluate the potential for a formation of the Mesozoic, which extends over an area of some 7,700 sq. miles. The #1-Puskon encountered wet gas at 23,622 ft., and downhole temperatures and pressures were higher than originally anticipated. Pemex is based in Mexico City.

2 Brazil

In Amazonas, Brazil, Petrobras has discovered a new oil and gas accumulation in Block SOL-T-171 of the Solimoes Basin. The #1-BRSA-961-AM, (Igarape Chibata Leste) was drilled to 10,811 ft. and tests indicate a production capacity of 1,400 bbl. per day of 41-degreegravity API oil and approximately 1.58 million cu. ft. per day of gas from Jurua. According to

Oil and Gas International, this is the second successful exploration result in Block SOL-T-171. Rio de Janeiro-based Petrobras is the operator of Block SOL-T-171 and the two Igarape Chibata wells with 100% interest.

3 Ireland

In Ireland’s North Celtic Sea Basin, Providence Resources Plc reported hydrocarbon shows in the secondary objective of its Barryroe appraisal well in Block SEL1/11. Hydrocarbon shows were encountered while drilling a 12.25-in. section, which contains some secondary potential reservoir units. Providence plans to core the underlying primary reservoir zone and perform drillstem testing on the primary basal sands target. The well is in 100 meters of water. A third party audit has indicated P-50 and P-10 oil in place estimates for Barryroe of 373 million bbl. and 893 million bbl., respectively. The corresponding 2C and 3C Barryroe technically recoverable contingent resources are 59 million bbl. and 144 million bbl., respectively. Dublin-based Providence is the operator of Block SEL1/11 and the Barryroe well with 80% interest, in partnership with Lansdowne Oil & Gas, which owns 20%.

4 Poland

A second shale-gas exploration well was completed by London-based San Leon Energy in Poland’s Baltic Basin. The #1-Rogity was drilled to 2,788 meters in the Braniewo S concession and, according to San Leon, had continuous, rich-gas shows over a 500-meter-interval through Lower Silurian, Ordovician and Middle Cambrian zones. According to the company, the gas shows are consistent with a wet-gas system in the basin. The strongest gas shows, along with indications of oil, were encountered in the Lower Silurian interval , which is estimated to be more than 100 meters thick. Oil shows were also encountered in Ordovician limestones and shales and in Middle Cambrian sandstone. Future operations in the Braniewo S Concession are expected to include a long offset horizontal well and multistage fracturing.

5 Poland

In Poland’s Southwest Carboniferous Basin, San Leon Energy completed the drilling and initial evaluation of the #2-Siciny appraisal well in its Gora Concession. San Leon’s stratigraphic test well reached its target depth of 3,520 meters and penetrated more than 1,000 meters of Carboniferous. More than 265 meters of continuous core were collected across three prospective intervals identified in the well. According to Oil and Gas International, a previously unseen fourth potential Carboniferous shale section and a fractured tight-gas sandstone were also encountered below 3,200 meters. Continuous gas shows (C1-C3) were found across the four prospective shale intervals and through the tight sandstone interval. San Leon is analyzing data from the site and additional operations could include pressure testing and vertical fracture stimulation across several intervals.

6 Israel

Houston-based Noble Energy Inc. reported another gas discovery in the Israeli sector of the Mediterranean at #1-Tanin in the Alon A Block. According to partner Delek Group, the discovery has 1.2- to 1.3 trillion cu. ft. of gas. The #1-Tanin was drilled to 18,045 ft. to test the Tanin (Crocodile) Prospect in the Tamar Sands A and B in an area that is also claimed by Lebanon. A 40-meter-thick gas-bearing pay zone was encountered during logging-while-drilling tests. Noble is now stabilizing the borehole for downhole logging and other tests. Noble is operator of the Alon A Block and #1-Tanin with 36% interest in partnership with Isramco Negev 2, with 28.75%; Delek Drilling and Avner Oil Exploration, with 15.625% each; and Dor Gas Exploration, with the remaining 4%.

7 Egypt

A discovery by Kuwait Energy Co. in Egypt’s Western Desert Abu Sennan Concession initially flowed 835 bbl. of oil per day. The company’s third discovery in the area, #1- Al Jahraa, is part of a six-well exploration program in the concession. The #1-Al Jahraa reached the producing Kharita at 3,700 meters and tested oil from the Abu Roash E target zone. The final two wells of the exploration program, #1-Salwa and #1-Hawali, have recently been spudded. Kuwait Energy, based in Salmiya, Kuwait, operates the Abu Sennan Block with 50% interest in partnership with Beach Energy, holding 22%, and Dover Investments, with the remaining 28%.

8 Angola

Cobalt International Energy announced test results from its Cameia pre-salt discovery, offshore Angola. The #1-Cameial was drilled in deepwater Block 21 in 5,518 ft. of water to 16,030 ft. An extensive wireline-evaluation program has confirmed the presence of a 1,180-ft. gross continuous oil column with more than a 75% net-to-gross pay estimate. According to Oil and Gas International, no gas/oil or oil/water contact was found during wireline logging. An extended drillstem test was performed and the well flowed at an unstimulated, sustained rate of 5,010 bbl. of 44-degree-gravity API oil and 14.3 million cu. ft. of associated gas per day with limited drawdown. Houston-based Cobalt is the operator of Block 21, with 40% interest, in partnership with Sonangol Exploracion-Produccion and Sonangol Pesquisa e Producao (20% interest), Nazaki Oil & Gaz (30%) and Alper Oil, 10%.

9 Mozambique

Rome-based Eni reported a significant gas discovery at its offshore Mamba prospect in Mozambique. The Offshore Area 4 concession venture, #1-Mamba North, has potential for up to 7.5 trillion cu. ft. of gas in place. The find increases the estimated total estimated gas volume for the combined Mamba South and North discoveries to about 30 trillion cu. ft. The #1-Mamba North is in 1,690 meters of water and was drilled to 5,330 meters. The discovery well encountered a total of 186 meters of gas pay in multiple high-quality Oligocene and Paleocene sands. During the production test, the well produced a surface facility-constrained flow of about 35.31 million cu. ft. per day and small volumes of condensates. The estimated gas production per well is expected to exceed 141.3 million cu. ft. daily. Eni has five additional wells planned in nearby structures to assess the Mamba complex. Eni operates Mozambique’s Offshore Area 4 and the #1-Mamba North discovery well with 70% interest in partnership with Galp Energia (10%), Korea Gas Corp.(10%), and Empresa Nacional de Hidrocarbonetos (10%), carried through the exploration phase.

10 Malaysia

Petronas reported significant gas discoveries at two offshore Sarawak, Malaysia, exploration wells that contain an estimated total recoverable resource of 3.5 trillion cu. ft. of gas. The largest of the two finds was #1-Kasawar, which was designed to test the carbonate reservoirs. The well was drilled to 3,196 meters and penetrated an approximate 1,000-meter gas column, the longest drilled section of gas column in Malaysia. According to Petronas, the preliminary assessment of Kasawari Field indicates that the gas-in-place is 5 trillion cu. ft. with an estimated recoverable hydrocarbon resource of just over 3 trillion cu. ft. The well test produced 29 million cu. ft. per day of gas. The #1-NC8SW exploration well was drilled about 17 kilometers south of #1-Kasawar to 3,853 meters, and gas was discovered in a 440-meter column in similar carbonate reservoirs. The recoverable resource for the NC8SW Field is estimated at more than 450 billion cu. ft. of gas. The company plans to drill 30 additional exploration wells in Malaysia this year. Petronas is based in Kuala Lumpur, Malaysia.