Current Oil and Gas Investment
India: Dholka and Wavel Fields
In 1995, JTI entered into a production sharing agreement with the Government of India (GOI) to develop the Dholka and Wavel fields in Gujarat, India. Since that time, we have increased production in the Dholka Field by over 50%. Through our onsite improvements and analysis of the field's proven reserves, we believe that there is a tremendous upside potential in increasing both oil and gas production.
As of September 2011, JTI's total current production from the oilfields in India is about 700 barrels of oil equivalent per day (BOE/D). The oil produced is 40 API gravity.
Dholka Field, Gujarat State: As of September 2011, there are 27 producing wells in the Dholka field. Total oil production from the Dholka Field is about 600 barrels of oil per day. In 2004, JTI started selling natural gas produced in the Dholka field. At present we sell about 26,000 Std. Cubic Meters (SCM) of gas daily [770 MSCF/day], which is used by local industries. Daily gas sales are approximately 30 barrels of oil equivalent per day. Thus the total production from Dholka Field is about 630 barrels of oil equivalent per day.
We own a work-over rig which is currently being used to improve production in the Dholka & Wavel fields.
During 2010, we perforated and stimulated the unconventional "K-4 Shale" zone in well DK-19. As a result, DK-19 produced about 15 barrels of oil per day and 600 cubic meters of gas per day [21 MSCF/day] from K-4 Shale. We are currently evaluating commercial development of "shale gas" and "shale oil" in the Dholka Field.
Additionally, JTI is evaluating plans to drill five new wells during the next two years to increase oil and gas production from the conventional reservoirs in the Dholka Field.
Wavel Field, Gujarat State: JTI started oil production from the Wavel field in January 2004. As of September 2011, these two wells produce 70 barrels of oil per day.
Colombia: Palagua-Caipal and Pavas-Cachira Fields
Palagua-Caipal Field: Ecopetrol, Colombia's National Oil Company, put out for bid several existing operational fields for incremental oil production. JTI's subsidiary, along with two Colombian partners bid on two separate fields. On 29th September 2000, the joint-venture group was awarded the bid on the Palagua-Caipal field. The joint-venture consortium will operate the field until 2023.
As of September 2011, the Palagua-Caipal field consists of 240 wells, 130 of which are active with an existing production of 5,600 BOPD. Incremental production reached 3,780 barrels per day. JTI's net share is about 985 barrels of oil per day (35% incremental over the previous year).
The joint-venture has contracted two work-over rigs for continuous use in the field and one drilling rig for use in 2011.
Pavas-Cachira Field: Pavas-Cachira field is a small field awarded by Ecopetrol to the joint-venture in March 2004. We have re-activated two wells in this field. This field is producing 85 BOPD. The JTI subsidiary's net share is about 25 barrels of oil per day.
As of September 2011, the JTI subsidiary's net share of oil production in Colombia is about 1,010 barrels of oil per day.
Ecuador: Puma Field
In 2006, Petroecuador invited bids for marginal fields including the Puma Field. Pegaso Consortium won the bid for the Puma Field. The Puma Contract was signed on March, 27, 2008 and revised to a service contract on January 21, 2011. The duration of the contract is until March 27, 2028. Pegaso Consortium is the contractor and is entitled to receive revenue on the net incremental production of the Puma Field after sharing the incremental production with Petroecuador.
During July 2010, JTI through the Joint Venture Company, Campo Puma Oriente S.A. (CPO), became a member of the Pegaso Consortium and Operator of the Puma Field. JTI, through its interest in (CPO), holds a 33.61% net participating interest in the Puma Field.
As of September 2011, the Puma Field consists of eleven wells, seven of which are active with an existing total production of about 1,100 BOPD. In addition to seven producing wells, one recently drilled well is being activated and expected to be on production by the end of November 2011.
As of September 2011, JTI's net share of oil production in Ecuador, through its interest in (CPO), is about 370 barrels of oil per day.
Puma Field: The Puma Field is situated in the Oriente Basin of Ecuador, adjoining the prolific Acua Field. Historically, the Oriente Basin has three main productive hydrocarbon reservoirs; Napo U, Napo T, and Hollin. JTI's joint-venture company (CPO) is successfully producing oil from new Limestone reservoirs, namely, Caliza. JTI's joint-venture company (CPO) is the first Operator in Ecuador to establish commercial production from the Caliza limestones.
Additionally, CPO has recently concluded drilling two new wells and a 3-D seismic survey of about 68 sq. km. The seismic survey results show two potential exploration prospects. CPO plans to drill one exploration well and one new development well by April 2012.
USA: The following is a list of various fields and properties for JTI in the United States.
As of September 2011, JTI's net share of production from numerous interests in the US is about 10 barrels of oil equivalent per day.
Bakken Oil Shale: Located in Williams County, North Dakota near Williston. The wells in this field are horizontal wells completed with multiple transverse fractures. Drilling started in 2009. As of March 2011, JTI has participating interests in five active horizontal wells. The horizontal well lengths vary from 5,000 to 10,000 feet with multiple fractures along the length of the horizontal wells.
Old Millman Ranch: This prospect is located approximately 12 miles northeast of Carlsbad, New Mexico in Eddy County. The Old Millman Ranch currently consists of 13 producing wells, with an additional 160 acres to develop.