Lagosta-2 results boost Anadarko’s Area 1 drive

Anadarko Petroleum’s appraisal programme in Area 1 off Mozambique is going from strength to strength with its latest appraisal well hitting the biggest pay zone yet found in the prolific Rovuma basin.

The result from the Lagosta-2 probe supports the US operator’s estimate that Area 1 holds between 15 trillion and more than 30 trillion cubic feet of recoverable gas, sufficient to supply at least three liquefied natural gas trains at a site near Palma.

In addition, Eni is shortly due to announce the results of its second wildcat in adjacent Area 4 after claiming to have found about 22 Tcf with its initial Mamba South-1 well.

Early results from Mamba North-1 were encouraging and final results are set to be unveiled by the end of this month.

Lagosta-2, which lies about seven kilometres north of Lagosta-1 and 8.5 kilometres south of the Camarao-1 exploration well, hit 777 net feet of gas pay in multiple zones.

The added bonus is that these results also confirmed reservoir continuity between Lagosta-2, Lagosta-1 and Camarao-1 over 15.5 kilometres.

“This is the largest pay count of any well in the complex to date”, said Anadarko’s head of global exploration Bob Daniels.

“These excellent results continue to support our recoverable resource estimates of 15 Tcf to 30-plus Tcf of gas in the discovery area on our block, as well as provide additional information that will be incorporated into our models to help determine the optimal subsea development plans for the complex,” he said.

Lagosta-2 was drilled to a total depth of about 14,223 feet in more than 4800 feet of water.

The well will be preserved for future use during Anadarko’s planned drill stem testing programme on the Windjammer, Barquentine and Lagosta complex, known as LaBarquenJammer.

The Fred Olsen Energy-owned drillship Belford Dolphin will next mobilise to drill the Lagosta-3 appraisal well. A second deepwater drillship, the Trans—ocean-owned Deepwater Millennium, has just arrived in Mozambique and will carry out the drill stem test campaign “as we remain on track to reach a final investment decision for this project in 2013”, said Daniels. As well as Lagosta, this programme will also cover the Windjammer and Barquentine discoveries.

Anadarko has a 36.5% interest in Area 1 and is known to be looking to downsize this stake to attract an experienced LNG player. Its Area 1 partners are Mitsui, Bharat Petroleum, Videocon Industries and Cove Energy, with state-owned ENH on a carry.

•• Major Indian companies are reportedly keen to acquire Cove Energy, which holds an 8.5% stake stake in Area 1.

ONGC Videsh, the overseas unit of state-owned Oil & Natural Gas Corporation, has teamed up with utility Gail India to bid for Cove in a deal valued at $1.2 billion, said the Times of India, adding that a bid will be placed soon.

Oil India is also reported to be interested in submitting a bid.

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