Expect a big uptick in the liquids-rich Niobrara play, says The Unconventional Drilling Report. By 4Q 2013, Noble is likely to have 10 Niobrara horizontal rigs active in the DJ Basin’s Wattenberg field vs. 5 today, and Anadarko expects to have 7 Niobrara horizontal rigs running in the field by yearend 2012 vs. 4 at present. Only one Niobrara rig is active in Wyoming’s Powder River Basin, in Goshen County, although Niobrara activity has also occurred in Laramie and Platte counties. About 200 permits have been issued in the three Wyoming counties. Anadarko will probe Niobrara potential in the DJ outside Wattenberg and in the PRB, and Noble will target Niobrara pay in southeastern Wyoming. Chesapeake will jump its rig count in the two basins from 10 to 20 by yearend 2012. Next year will prove the tipping point on whether the Niobrara has Eagle Ford breakout potential. The Niobrara has been slow to firm up in Wyoming, where the geology is more complex. But, overall, healthy growth is likely in the Niobrara rig count over the next several years.

Reports are that Rowan Companies newbuild jackup Rowan EXL-IV may have a signed contract in place by the end of this week. While the potential customer is not known, market intelligence indicates Apache Corporation could be the operator getting the rig. The LeTourneau Super 116-E design rig, delivered from the Keppel AmFELS yard in Brownsville, Texas, on September 1, is currently undergoing systems testing while waiting on work and is expected to leave the yard in October.

 

Hall-Houston Exploration finally received its permit and now has jackup Hercules 212 on location in High Island Block 205. The ADTI turnkey well is expected to take around 30 days to complete. Meanwhile, jackup Hercules 214 has wrapped up operations for Apache Corporation in Main Pass Block 69 and is now on standby while it waits for its next contract to begin. That work will be for Phoenix Exploration Company, LP in nearby Main Pass Block 59 on a job that was switched from jackup Hercules 253. That rig is also on standby in West Cameron Block 38 while it waits to begin a threewell, 120-day contract with Hall-Houston, now expected to be in early October. Tana Exploration Company, LLC will then ...

Noble Corporation has exercised an option with Hyundai Heavy Industries for the construction of an ultra-deepwater drillship, the fourth ordered this year by the company. The rig, which has not yet been named, is based on the Hyundai Gusto P10000 hull design and will be outfitted to drill in up to 10,000 ft of water but will be capable of operating in up to 12,000-ft water depths. Construction cost, including turnkey construction contract, company-furnished equipment, project management and spares, is expected to be $630 million, and delivery is scheduled for the second half of 2014. The rig will be equipped with two complete BOP systems and a DP-3 stationkeeping system and will provide accommodations for 210 personnel. Noble does not currently have a contract in place for the rig.

 

ENSCO, PLC has received a short contract from Cimarex Energy Co. for idle jackup ENSCO 81. The rig is expected to move to location in South Timbalier Block 265 in about a week, with the 17-day P&A keeping the rig working through the end of the month. The rig has been idle in South Timbalier Block 28 since early August after completing a contract for Walter Oil & Gas Corporation....

Hercules Offshore has received a new contract from Apache to take jackup Hercules 214, with the rig now under tow to location in Main Pass Block 68. Upon completion, the jackup will enter a yet-to-be-named shipyard for a 45-day ABS inspection. Jackup Hercules 150 completed a contract with Hilcorp Energy late last week, and the rig has just arrived on location in Eugene Island Block 28 for the start of a one-well contract with Rooster Petroleum. Work is scheduled to last around 25 days, making the rig next available in the second half of September.

 

Operations for ENI US Operating with semi ENSCO 8500 in Green Canyon Block 517 have ended, and the rig is now in East Breaks Block 602, where it is undergoing BOP modifications. Work is expected to take about 60 days, after which the rig will remain in the block for two wells with Anadarko Petroleum in the Nansen field. The rig is operating under a five-year rig sharing agreement between ENI and Anadarko that runs to August 2013. Reports continue to circulate that newbuild drillship ENSCO DS-3 will have a sublet contract signed shortly that will take it out of the US Gulf of ...

Anadarko Petroleum Corporation has issued a letter of intent to Technip for the engineering, construction, and transport of a 23,000 ton truss spar hull for its Lucius field development in the GOM’s Keathley Canyon area. This field is located in approximately 7,100 feet of water. The letter of intent allows Technip to begin preliminary work on the project, including purchase of long-lead items for the hull in advance of the planned sanction date of December 2011.

 

BHP Billiton, a significant player in the deepwater Gulf of Mexico, announced that all conditions have been satisfied surrounding the closing of the tender offer to acquire all outstanding shares of the common stock of leading onshore independent Petrohawk Energy Corporation for $38.75 per share.

Anadarko Petroleum Corporation has finalized a unitization agreement with ExxonMobil Corporation and co-owners to develop the Lucius field in the deepwater Gulf of Mexico. The unitization includes portions of Keathley Canyon Blocks 874, 875, 918 and 919. Anadarko will operate the unit with a 35% working interest. Following the unitization agreement, the Lucius interest owners entered into an agreement with the Hadrian South co-venturers whereby natural gas produced from the Hadrian South field will be processed through the Lucius facility in return for a production-handling fee and reimbursement for any required facility upgrades. Anadarko reports that it has already placed orders for long-lead items, including the truss spar floating production facility, which will have a capacity of over 80,000 b/d of oil and 450 MMcfd of natural gas. The company expects sanctioning the project later this year, with first production expected in 2012.