Keeper Negotiating Production Sharing Contract with PetroVietnam
On May 3, 2005, Keeper Resources entered into a Memorandum of Understanding (MOU) with PetroVietnam Investment & Development Company, a subsidiary of PetroVietnam. Under the MOU, the Company conducted a review of all existing geological data of a study area in the Red River Basin to determine its potential for commercial coal bed methane (CBM) production.
Keeper is currently negotiating a CBM production sharing contract with PetroVietnam for a contract area that would include the study area referenced above. The negotiations are expected to be completed during the second quarter of 2008.
On April 5, 2006, the Company signed a production sharing contract with Pogo Producing Company (now Plains Exploration and Production Company ("Plains") and Vietnam Oil and Gas Corp. ("PetroVietnam") for hydrocarbon exploration and production from Block 124, offshore Vietnam, in the Phu Khanh basin. The Company assigned its 25% working interest to Plains in return for a 5% gross overriding royalty ("GOR") on 100% of the production from Block 124.
Keeper drilled a development well, 06-01-55-12 W5M, in the Niton area of Alberta, Canada. It was completed in December, swabbed in oil, and is cased as a potential oil well. Currently the well is shut-in while the required permits are obtained to set up a temporary single well battery to determine a stabilized production rate. Once that is ascertained, a pipeline to conserve the solution gas may be required. Keeper has a 44.7% interest until 300% of the completion costs are recovered, reverting to a 30% interest until 300% of the drilling costs are recovered, then reverting to 3% after payout.
In the Meekwap area, Keeper conducted an acid stimulation workover on our existing horizontal well at 1-32-66-15 W5M, following the workover the well flowed back equivalent to 240 bbl/d oil over a 9 hour test. A stabilized flow rate was not achieved and pipeline problems have prevented the well from being returned to production in January. The pipeline problem is expected to be resolved the first week of February at which time normal production would resume. Keeper has a 30.8% interest in the well before payout and a 25.8% interest after payout.
Keeper has a 100% working interest in a section of land in the Gordondale area with a suspended well drilled by a competitor. Keeper acquired the well, 14-08-80-10 W6M, at a nominal cost and reentered the well in December to recomplete a zone for light oil. The well swabbed back oil and is currently shut in for pressure testing. Once this is done, the well will be set up for production testing to determine a stabilized rate.
In the Bittern Lake area, the Glauconitic zone in the 02/11-14-46-23 W4M well was abandoned due to high water production. The well was recompleted uphole in the Colony zone. The initial flow rate was about 1 mmcf/d but has since dropped to about 300 mcf/d. Keeper has a 45% working interest in the well until payout and 29.5% after payout.
In the Nevis area a well was put on production from the Horseshoe Canyon coals at a rate of 170mcf/d. Keeper has a 12.2% working interest in this well.
The Company has a 100% (60% after payout) working interest in a potential gas well in the Spirit River area. The plan is to complete this well in the first half of 2008.
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Company: Keeper Resources more info
- Keeper's Reserves Decrease 47% for 2007 (Mar 20)
- Keeper Considers Letting Go of All Shares (Feb 06)
- Keeper Negotiating Production Sharing Contract with PetroVietnam (Feb 06)