Breaking its own world record of 382 million cubic feet of gas per day with the #2 Antelope discovery of 705 million cubic feet, the next step for Houston-based InterOil Corp. is to deliver its reserves in Papua New Guinea’s Elk/Antelope Field to meet demand from Asian markets.

According to E&P Daily, the PNG cabinet has approved two multibillion-dollar projects this year.

The Liquid Natural Gas (LNG) project plans a two-train facility with each train producing 4 million tons a year of LNG from InterOil’s field. First production is planned for 2014-2015. InterOil’s partners are Pacific LNG and Papua New Guinea’s state-owned Petromin. To concentrate on the onshore PL 236, 237 and 238 licenses—which hold Elk/Antelope Field—InterOil has offered a 15% stake to an unnamed buyer in its offshore license PPL 244.

Additionally, ExxonMobil is spearheading a $15-billion LNG project with partners Oil Search Ltd., Santos Ltd. and Nippon Oil. The project in PNG’s southern highlands and western provinces is slated to begin with LNG plant construction this year. Initial output will be 6.6 million tons per year. This venture already has agreements to sell 3.8 million tons per year to Sinopec of China, Japan’s Tokyo Electric Power and Osaka Gas Co., and preliminary agreements with CPC Corp. of Taiwan.

—Larry Prado

1 Canada

Two additional heavy-oil wells have been completed by Manitoba-based Nordic Oil and Gas Ltd. at #15B-22-50-2-W4 and #4D-24-50-2-W4, in Lloydminster, Alberta. Each well has shown good pay levels in Sparky zones and further testing is being done to determine the viability of possible production from the Dina zone. According to the company, Sparky production could reach 15-20 bbl. of oil per day from each well. The fifth well in the drilling program, #15B-6-50-1-W4, was spudded in December 2009 and the onsite rig will move to the sixth location at #10B-6-50-1-W4. The company is also considering drilling a horizontal well and is investigating shooting 3-D seismic.

2 Brazil

Drillstem testing was performed by BG Brazil on Iracema wells #4-RJS-647 and #4-BRSA-711-RJS in the BM-S-11 appraisal area in the Santos Basin pre-salt, offshore Brazil. The facility-constrained tests were performed across two zones with aggregate production amounts of 10,500 bbl. of light 32-degree API oil and 17 million cu. ft. of gas per day. The Iracema appraisal well is 33 kilometers northwest of the original Tupi discovery wells, #1-RJS-628A and 1#-BRSA-369. Further data evaluation continues and development plans are under way. BG has a 25% stake in the area, while Petrobras operates the block with a 65% share, and Portugal’s GALP has the remaining 10%.

3 Irish Sea

In the East Irish Sea, Centrica Energy Ltd. of Windsor, U.K., is reported to have a gas find at its Rhyl exploration well in the East Irish Sea. Preliminary reports from #113/27b-6 indicate that up to 150 billion cu. ft. of gas has been discovered. Centrica operates both the North and South Morecambe gas fields in the East Irish Sea, which have been in operation since 1994 and 1985, respectively.

4 Hungary

According to the Unconventional Natural Gas Report, Ascent Resources Plc and its Hungarian subsidiary, PetroHungaria Kft, production-tested #105 PEN in the Nyirseg South permit in northeastern Hungary. The Penészlek Project well had an initial flow rate of more than 2.75 million cu. ft. of gas from a 9-meter interval at the top of the Miocene volcaniclastic section. Presently, the well is shut in for pipeline construction and connection to the main export pipeline. Drilling permits for the #101-PEN and #106-PEN have been issued and site construction is planned in January. Ascent has a 45.23% interest in the Penészlek Project through its equity interest in PetroHungaria Kft. Other partners are DualEx Energy, 37.5%; Geomega, 8%; Leni Gas & Oil, 7.27%; and Swede Resources, 2%.

5 Libya

Hess Corp. has tested its offshore Libya well, #A1-54/01. The discovery was drilled in the Arous Al-Bahar prospect in 2008 and hit hydrocarbons in several intervals with a combined gross section of around 500 ft. Hess reentered and perforated the well over a 300-ft. carbonate interval. During a drillstem test, the well flowed 27 million cu. ft. per day of good-quality gas and 533 bbl. of condensate on a 52/64-in. choke. An appraisal well is planned at #A2-54/01, which is about 11 kilometers northwest of the discovery well.

6 Congo-Brazzaville

SOCO International Plc of London reported a combined maximum flow rate of around 2,600 bbl. of oil and 7 million cu. ft. of gas per day from the #4 Viodo Marine appraisal well in the Marine XI Block offshore Congo-Brazzaville, following two drillstem tests. The first test from the deeper Carbonate section between 2,240-73 meters was tested on a 3/4-in. choke and flow rates stabilized at approximately 1,100 bbl. of oil per day after a seven-hour flow period. A test of the upper Carbonate section, between 2,205 and 2,230 meters, flowed at post-acid rates of approximately 4.5 million cu. ft. daily. As planned, the well will be plugged and abandoned pending well data and seismic processing to determine the distribution of reservoir quality within the field.

7 Israel

Israel Petroleum Co. (IPC) acquired an undivided 95.5% interest in two drilling licenses and an exploration block in the Levantine Basin, offshore Israel, near the Tamar and Dalit natural gas discoveries. The Mira and Sarah drilling licenses cover 831 sq. kilometers, and the Benjamin exploration permit covers 1,934 sq. kilometers. The assets were acquired from a private company that will retain 3% overriding royalty interests. The deal is subject to the approval of the Israeli Ministry of Infrastructure. Toronto-based Bontan Corp. owns a 75% equity interest in IPC and International Three Crown Petroleum LLC owns a 22.5% equity interest. The latter firm will operate the project assets.

8 Iraq

Gulf Keystone Petro­leum of London has found more oil at its #1-Shaikan exploration well in the Kurdistan region of Iraq. The well reached total depth at 2,950 meters. Its first test in the Triassic flowed 2,000 bbl. of oil and 2 million cu. ft. of gas per day, and its second test in the Triassic produced 6,000 bbl. of 53- to 55-degree API oil and 21 million cu. ft. of gas per day. Overall, the #1-Shaikan well has discovered more than 1,000 meters of oil column and 200 meters of net pay. Tests to date have demonstrated the capability for 31,000 bbl. of oil equivalent (BOE) of aggregate production (7,000 BOE from the Jurassic and 24,000 BOE per day from the Triassic), reports the company.

9 China

Calgary-based Husky Energy Inc. and Chinese state-owned CNOOC Ltd. reported a second deepwater gas discovery with the LiuHua #34-2-1 exploration well in Block 29/26 in the South China Sea. The #34-2-1 well is 23 kilometers northeast of the #3-1-1 Liwan discovery well and will be tied into the Liwan development. The discovery is in 3,757 ft. of water and encountered a significant thickness of excellent quality, gas-charged reservoir. The well reached a total depth of 11,316 ft. Drillstem tests had a natural gas flow with a high liquids yield at an equipment-restricted rate of 55 million cu. ft. per day. Possible deliverability could exceed 140 million cu. ft. daily.

10 Philippines

At #1-Dahakan, a deepwater wildcat well in Service Contract 56 (SC 56) offshore Philippines, ExxonMobil has found hydrocarbon pay and plans a second well. The company reported that well logs showed reservoir sands and hydrocarbons, and that the well will be drilled deeper to 16,405 ft. Government analysts believe that the offshore field may hold 750 million bbl. ExxonMobil operates SC 56 with a 50% stake, and Mitra Energy and BHP Billiton Petroleum each hold 25% shares. Australia’s Tap Oil, which operates SC 41 immediately south of SC 56, plans to drill on its acreage in 2010.

11 Australia

An offshore Western Australia gas discovery at Woodside Petroleum Ltd.’s #1 Eris in the Greater Pluto area will add reserves to its planned expansion of the Pluto liquefied natural gas (LNG) project. The well hit 197 ft. of gas in well-developed sands and could contribute to the first LNG train under construction. It is one of 20 exploration wells that the Perth-based company is drilling in the Pluto area over the next several years. The recently completed #1-Pelion-1 was water wet, according to E&P Daily. The next planned Woodside well in Greater Pluto is #1-Noblige.

12 Australia

Metgasco Ltd. of Sydney has discovered gas in its #E1 Kingfisher well drilled 2 kilometers from Casino Field, in the PEL 16 Permit. The offshore New South Wales well found 105 ft. of gas-bearing sands in an interval from 3,471-6,782 ft. Metgasco said the find was the first significant conventional gas discovery in more than 100 years of exploration in the state. Additional testing will be performed early this year to determine its development potential. The Kingfisher structure holds 82 billon cu. ft. of contingent gas resources at the P50 level with 36.6 billion cu. ft. attributed to the gas sands intersected in an earlier discovery, #E14 Riflebird.