Cyprus-Forum.com

[Get Real!]

So it's almost double of what they initially anticipated!

Who is gonna tell the bitter lemons?

What's that noise... I hear people chewing on their keyboards!

[bsharpish]

No bitter lemons but block 12 alone is very marginal capacity for a 1-2 train LNG plant..... And to further burst the endless optimism - The US have approved 4 LNG plants so far with 12 more under application to process there, by comparison, limitless shale gas reserves.
The net effect of US overcapacity will be a drop in prices making block 12 less attractive.... Bear in mind that the wellhead price of <$4 a therm here ( I'm working in the Appalachian Marcellus and Utica shale plays as we speak) is one third of the price in Europe

The important thing for the relevant Cypriot authorities to consider is speed - 2016 will be too late as once Cove point, cheniere etc come online the American cat will be amongst the pigeons

[bsharpish]

What I'm really saying is Cyprus needs to strike a firm partnership with Israel FAST and act now...... The usual procrastination can only damage prospects for recovering this essential financial opportunity

[bsharpish]

Also be interesting to see the compositional matrix of the gas as, at the moment, "dirty wet gas" is more desirable ...... The greater the ethane, propane, butane , ISO pentane and other C6+ hydrocarbons - the better

The world is facing a glut of Methane with prices sure to drop...... I'm visiting sites in the Bakken plays soon where they flare >$5 million worth if methane a day as it's not worth investing in network infra structure at present

[GreekIslandGirl]

Gas prices keep going up. The UK was within minutes of running out several months ago.

[kimon07]

NOBLE ENERGY ANNOUNCES APPRAISAL DRILLING AND FLOW TEST RESULTS OFFSHORE REPUBLIC OF CYPRUS

HOUSTON, Oct. 3, 2013 /PRNewswire/ --

Noble Energy, Inc. (NYSE: NBL) announced today that the A-2 appraisal well drilled on the Block 12 discovery offshore the Republic of Cyprus has successfully encountered approximately 120 feet of net natural gas pay within the targeted Miocene-aged sand intervals. The Cyprus A-2 well, which is more than four miles northeast of the A-1 discovery location, was drilled to a total depth of 18,865 feet in 5,575 feet of water.

Production testing procedures were performed over a 39-foot section of the upper Miocene reservoir. The test, limited by surface equipment, yielded a maximum flow rate of 56 million cubic feet per day (Mmcf/d) of natural gas. Performance modeling indicates development wells in the reservoir should have capacity to deliver up to 250 Mmcf/d. Evaluation of drilling data, wireline logs and reservoir performance information has resulted in an updated estimate of gross resources of the field ranging(1) from 3.6 trillion cubic feet (Tcf) of natural gas to 6 Tcf, with a mean of approximately 5 Tcf. The Cyprus A structure represents the third largest field discovered to date within the Deepwater Levant Basin.

Keith Elliott, Noble Energy's Senior Vice President, Eastern Mediterranean, commented, "Results from the Cyprus A-2 well have confirmed substantial recoverable natural gas resources and high reservoir deliverability. While the A-2 location has successfully defined the northern area of the discovery, we anticipate additional appraisal activities are necessary to further refine the ultimate recoverable resources and optimize field development planning. In the meantime, we continue to identify and advance multiple development options. In addition to the Cyprus A discovery, we are also encouraged about the further exploration potential in Block 12. We have recently completed a 1,100 square mile 3D seismic acquisition, which will be interpreted over the next several months."

More:
http://investors.nobleenergyinc.com/rel ... eID=794694

[bsharpish]

Trust me - the commercial prices of gas are falling

Let's forget the impact of the USA for a moment ......
Shah deniz 2/ south stream will hit Europe with Azeri gas within a few years.
Old Putin is not going to lose revenue and wants an extra north stream
The Norwegians are already considering gas " over the top" via the northern polar routes to the Far East .
It looks like Egyptian reserves are far far bigger than anticipated
Ditto for Western Africa


All these are far bigger reserves and competing in a global market .... So yes consumer prices are not falling (yet) but wellhead and spot contract rates are and will.

And as for the "Bacton Burp" earlier this year ..... We were NOT minutes away from running out ... Media hype and scare mongering ......... Just think whose interests are best served by the publics fears over energy shortages ?

Now consider the bowland shale and Tory energy plans

[bill cobbett]

Also be interesting to see the compositional matrix of the gas as, at the moment, "dirty wet gas" is more desirable ...... The greater the ethane, propane, butane , ISO pentane and other C6+ hydrocarbons - the better

The world is facing a glut of Methane with prices sure to drop...... I'm visiting sites in the Bakken plays soon where they flare >$5 million worth if methane a day as it's not worth investing in network infra structure at present

That's interesting bsharpish but there is no info on composition in the press release... so the dirtier the gas the better...???

When you say longer chain C6+ HCs ... in simple language, are we talking oil that can be separated...???

[Demonax]

Good news! We now have PROVEN reserves!

Noble Energy said its production testing has confirmed 4-6 Tcf of natural gas, with a median of 5 Tcf, in Aphrodite offshore well, that will yield a maximum flow rate of 56 million cubic feet per day. The estimates have been revised down from 5-7 Tcf.

There is approximately 120 feet of net natural gas, and the well represents the third-largest field discovered to date within the Deepwater Levant Basin.

Keith Elliott, Noble Energy's Senior Vice President, Eastern Mediterranean, commented,

"Results from the Cyprus A-2 well have confirmed substantial recoverable natural gas resources and high reservoir deliverability. In addition to the Cyprus A discovery, we are also encouraged about the further exploration potential in Block 12. We have recently completed a 1,100 square mile 3D seismic acquisition, which will be interpreted over the next several months."

http://www.cyprusnewsreport.com/?q=node/6999

[bsharpish]

Also be interesting to see the compositional matrix of the gas as, at the moment, "dirty wet gas" is more desirable ...... The greater the ethane, propane, butane , ISO pentane and other C6+ hydrocarbons - the better

The world is facing a glut of Methane with prices sure to drop...... I'm visiting sites in the Bakken plays soon where they flare >$5 million worth if methane a day as it's not worth investing in network infra structure at present

That's interesting bsharpish but there is no info on composition in the press release... so the dirtier the gas the better...???

When you say longer chain C6+ HCs ... in simple language, are we talking oil that can be separated...???

It's easier to say that " natural gas " is FAR from natural and never homogenous

The proportion of methane is highly variable a "normal matrix" if there is such a thing will look like this -

Methane CH4 70-90%
Ethane C2H6. 5-12%
Propane C3H8. 3-8%
Butane C4H10. 3-8%
Carbon Dioxide CO2 0-8%
Oxygen O2 0-0.2%
Nitrogen N2 0-5%
C6+ hydrocarbons 0-2%
Hydrogen sulphide H2S 0-5%
Rare gases A, He, Ne, Xe trace ( although in rare cases He can exceed 10% - it's where the worlds helium comes from)
Mercury trace

It's actually a far from natural gas by the time it's delivered to the user ......... Just sounds " healthier" as natural gas.

The real value at present is NOT. In the methane .... Cryogenic separation is used to strip out the other elements

For example - Ethane is in high demand as once it's been steam cracked into ethylene it's the base for many plastics

C6+ covers a blend of hydrocarbon alkanes found entrained in either gas or liquid ( usually aerosolised) phase within the matrix as a whole .... Actually rarely above C8 although I've seen c12 in trace amounts

I'll get really boring and talk about gas chromatographs, Joules Thomson effect, von karmann street vortex, entrainment issues, resonant frequency calculations,