DENVER, Feb. 21, 2012 /PRNewswire/ — Grid Petroleum Corp. (OTCBB: GRPR) The Board of Directors are pleased to announce that Grid Petroleum has entered into a Joint Venture Development Agreement with a private holding company, to develop a Mutual Area of Interest in the Northwest Premont Field in Jim Wells County Texas. The Field covers 4,500 acres and is part of the Gulf Coast Trend in South Texas.
Reserves are estimated to contain over 20 million barrels of oil (bbls) and 20 billion cubic feet (bcf) of natural gas from as many as 15 potentially productive zones per well. The initial phase of the Development Agreement outlines the drilling and completion of 20 new wells and the re-entry of 8 additional previously drilled and completed shut-in wells.
The company had previously announced negotiations to purchase the private holding company, however it has been determined a Joint Venture Development Agreement will serve the company and its shareholders more beneficially in the near term.
Grid Petroleum will begin participation with the second well to be drilled under the Joint Venture Development Agreement at a level of 10% for an investment of $152,000.
Grid has the opportunity to make the Companies first investment into the Joint Venture after the results of the first well-drilled and completed are available for analysis, greatly reducing the risk of the investment by Grid Petroleum into the entire field.
The purpose of the development of the Northwest Premont Field is to create value and income by re-entering certain wells, which have been tested and have proven oil and gas producing zones, and the drilling of strategically located wells containing multiple zone production in a manner that produces high rates of stable production; proving the reserves of the underlying pay zones for further development of the field through production.
To date the fields operator has re-entered two wells, the Guerra #2 and the Garcia #2. The Guerra #2 was drilled to 4,000 feet and tested positively for oil and gas in 12 potentially productive sand zones encountering 118 net feet of pay.
AP Yang, Petroleum Engineers of Houston Texas ran 45 days of open flow tests to draw down the pressure of each of the productive zones in the well. The absolute open flow rate calculations indicated the lobe flow of the Laughlin oil sand deposit tested at 15,541,000 cubic feet gas per day. The upper lobe flow tested at 5,063,000 cubic feet peer day. The combined total of 20,604,000 cubic feet per day from 16 feet of net pay zone for this one well with multiple pay zones.
Preliminary Reserves Estimates for the Guerra #2 are 100,000 to 150,000 Barrels of oil and 1.5 Billion Cubic Feet to 2.5 Billion Cubic Feet of natural gas.
The second re entry well the Garcia #2 is co-mingling two gas zones with production averaging 1.0 million cubic feet of gas per day. An Oil zone is also producing an average of 39 barrels of oil per day. Reserve estimates for the Garcia #2 will have similar potential production levels as the Guerra #2.
The current price of gas ranges between $2.75 and $3.00 per mcf.
20 million cubic feet per day of gas production represents a potential gross of $60,000.00 per day.
Grid Petroleum Corp is a development stage company focused on the acquisition and development of low cost high reward oil and gas prospects with infield drilling for proven potential reserves in the United States and Canada.
The company anticipates the initiation of a development plan with its joint venture partners for the purpose of establishing suitable drill sites for the Kreyenhagen Trend leases.
Upon completion the company will have established a time line for the development of its significant Oil and Gas assets.
Treaty Energy Corporation has said it has encountered oil with its first well at the Princess Concession in Belize.
Bill Lehane 30 January 2012 12:17 GMT
The New Orleans and Houston-based player said the San Juan 2 well would be completed and put into production in the wake of the find at the Stann Creek field, which Treaty estimates could contain up to six million barrels of recoverable oil.
Co-chief executive Andrew Reid said the San Juan 2 would be produced at this first pay zone, adding: “It is our plan to drill San Juan 1 deeper than San Juan 2 in the belief that there may be additional pay zones present.”
Initial examinations of cuttings show “lime characteristics with good porosity and high saturation”, Treaty said, adding the charactertisics appeared similar to oil producing lime plays in Texas.
“These plays have produced hundreds of millions of barrels of oil over the past century and have been the source of many of the great Texas success stories”, the company commented on Monday.
Drilling had begun on 24 January at the well near Independence Village, adjacent to the Port of Big Creek in the Stann Creek District.
Treaty detected hydrocarbons in the form of a gas register when it reached 1235 feet on Friday.
“This presence of C1-C4 gas readings indicated a geo-pressurized oil bearing zone/gas driven”, the player said. “As drilling continued the indicator steadily increased from the depth of 1235 ft with readings being taken at one-foot intervals.”
Consultants from Advance Geological Services said oil was present in the cuttings samples, and continued drilling showed a constant increase in hydrocarbon presence in the formation down to 1290 feet, after which there was a steady decline.
Treaty holds 200,000 onshore acres within the Princess Concession, where it believes there could be three oil-bearing fields of various sizes, as well as 1.4 million acres on the Paradise Concession.
Treaty is an international acquisition, development and production company focused on leases that are considered to have proven but undeveloped reserves.
Published: 30 January 2012 12:17 GMT | Last updated: 30 January 2012 13:34 GMT
- Treaty Energy Corporation Strikes Oil in Belize (prnewswire.com)
- Treaty Energy Corporation Letter to Shareholders (prnewswire.com)
- 1 Year in Belize (johnpascoe.wordpress.com)
- Treaty Energy Corporation Prepares to Drill for Oil in Texas (prnewswire.com)
- Where in The World is Belize?: A Tour of The Nation of Belize, Plus a Recipe for Belizean Brownies (trifter.com)
Saudi Arabia has stopped $100bn expansion of its oil production capacity after reaching a target of 12m barrels a day and now plans to shift its spending priorities to natural gas, refining and the chemicals business, media reports said.
The kingdom is, therefore, not pushing ahead with an assumed expansion plan to produce 15 million barrels a day by the end of 2020.
- Saudis face waning power in North America (mb50.wordpress.com)
- Saudi Arabia: Shia Protests Against the State Intensify (ibtimes.com)
- Two dead in Saudi Arabia gunfight (bbc.co.uk)
- Iran oil targeted by Obama sanctions (money.cnn.com)
- Saudis plan for future of unconventional oil from oilsands and tight oil and more expensive Saudi oil (nextbigfuture.com)
Petrobras issues the results of the drilling of another well in Carioca area, situated in Block BM-S-9 which confirms the potential of the exploration area.
This new discovery was proven by means of good quality oil sampling of close to 28o API, by cable test in carbonate reservoirs of approximate 4830m deep. A formation test in the interval is estimated to be performed in order to evaluate the productivity of such reservoirs.
In addition to that, it is also in progress a long term test in well 3-SPS- 74 (Carioca Northeast), which is a well connected to the FPSO Dynamic Producer. The outcome indicates a potential for production of approximately 28,000 barrels per day, which is above the initial estimates. Currently the well produces a flow of 23,400 barrels per day, in face of the restrictions imposed by ruling of ANP (National Agency of Petroleum Natural Gas And Biofuels).
In addition to the discovery well, four other wells were drilled and two formation tests were performed in the area of the Plan of Discoveries Assessment of Carioca. Such activities complied with all the commitments made with ANP.
Based on the results found in the Carioca area, the Consortium requested ANP to postpone the closing of the Plan of Discovery Assessment and the Announcement of Commercial Viability, which were originally estimated to November 2011.
The new deadline shall be used to perform the activities not provided in the original program: drilling of up to three exploration wells and a long term test.
ANP authorised the review of the Activities and the Schedule for the Plan of Discovery Assessment PA-1-SPS-50 (Carioca), with the introduction of additional operations, and the deadline of the Announcement of Commercial Viability was postponed to December 31, 2013.
The extension of the deadline for the Assessment Plan does not alter the plans and the schedule of the Consortium in relation to the implementation of the production development project.
The Consortium of Block BM-S-9, operated by Petrobras (45%) in association with BG E&P Brasil (30%) and Repsol Sinopec Brasil (25%) will give continuity to the engagements of the Plan of Discovery Assessment approved by ANP.
- Brazil: Petrobras Discovers Hydrocarbons in Campos Basin (mb50.wordpress.com)
- Modec Receives FPSO Order from Petrobras, Brazil (mb50.wordpress.com)
- Petrobras Strikes Oil in U.S. Gulf of Mexico (mb50.wordpress.com)
- Sinopec to Buy Galp’s Offshore Asset in Brazil for USD 3.5 Billion (mb50.wordpress.com)
- Petrobras production hurt by ‘global bottleneck’ for rigs (mb50.wordpress.com)
- Ocean Rig Bidding to Rent 5 Drillships to Petrobras, Brazil (mb50.wordpress.com)
- Westshore Shipbrokers: Ultra-Deepwater, What is Next for the Shipowner? (Brazil) (mb50.wordpress.com)
Posted on May 10, 2011 by Steve Maley
Your President has been telling you things that simply aren’t true. Things like “We can’t drill our way out of our energy problems.” Or “Oil and gas are the fuels of the past.” Or “The U.S. consumes 25% of the world’s oil, but controls only 2% of the world’s reserves.”
Well, that last one may be technically true, but it is used to convey a falsehood. In a post called The Big Energy Lie (Dec. ’09), I attempted to explain the deception. In this post, I’ll attempt to show you graphically in terms that the lay person should understand.
KEY CONCEPT #1: “Reserves” are not “Inventory”
This graph depicts the history of U.S. oil reserves and production over the last 25 years. In 1986, reserves were estimated to be nearly 27 billion barrels. In 1986, we produced 8.7 million barrels a day, or an annual total of 3.2 million barrels. The ratio of reserves to production is 8.5 years — often incorrectly reported in the press with alarm: “We have only 8.5 years of reserves left! We’re running out of oil!”
If this were true, we’d have run slap out of oil in 1995. The dashed line on the graph shows the cumulative amount of oil produced since 1986. Sure enough, by 1995 we had produced over 27 billion barrels, and we still had reserves in the ground of over 22 billion barrels.
Fast forward to 2010: we’re still producing 2 billion barrels a year, and we still have over 20 billion barrels in the ground. In fact, we’ve produced 58 billion barrels since 1986, over twice the 1986 reserve total.
Well, not really.
Imagine if you managed a shoe store. On January 1, inventory shows you have 10,000 pairs of shoes on hand, and you sell 500 pairs per day. Would you forecast that you would be completely out of shoes in 20 days?
Only if you can’t replenish supply. (Or if you’re a
former community organizer really crappy manager.)
In oil and gas, reserves are replenished by drilling new wells. (Reserves can be added other ways, too, but the ultimate key is drilling.) By drilling, “resources” are upgraded to the much more restrictive and valuable category “reserves”. And the U.S. has plenty of resources to draw from. We should be encouraged by the fact that, even with a period of persistently low product prices and relatively low drilling activity from 1986 to 2004, the reserve base has only declined by a little over 20% in 25 years.
KEY CONCEPT #2: “Reserves” are only estimates.
Oil and gas reserves often cannot be estimated with a great deal of precision. Even if the recoverable quantity were known accurately, by definition reserves must be economic to produce. That means that changing economic conditions (especially changes in oil and gas prices) will effect the estimated reserve quantity. When prices are higher, wells can be produced that would otherwise be plugged.
Bottom line, reserve estimates change all the time.
The dark green bars show the rate of oil production over the 25 years. The gold bars show the year to year change in reserves. Production causes reserves to decrease, but new additions from drilling can offset production. Reserves can also be revised — up or down — due to geologic and engineering studies, or changes in economics as described above.
One more graph — the “Reserve Life Index”, or Reserves to Production Ratio. We saw that it is often misinterpreted to represent how many years of production remain. Our national R/P ratio has grown over the last 25 years, perhaps a reflection of better technology or higher prices.
There you have it. Our relatively low reserve number is not an indication that “we’re running out of oil!”, it’s merely a wake-up call that we need to get busy and shore up our domestic supplies. The only thing we are running low on is the political will to do it.