Shell was drilling with oil shows on the ACFO (1-SHEL-031-RJS) new-field wildcat (NFW) in the Alto CF Oeste P3 contract, ALTO_CF_O block during mid-November 2019.    Shell filed an oil show report      with the ANP for the well on 8 November 2019.   The NFW was spudded on 6      October 2019.   The proposed total      depth is 5,200 m with the pre-salt Early Cretaceous Barra Velha Formation      as the primary target.  The prospect has super-giant      potential with reserves greater than 500 MMboe.  Shell is utilizing the âBrava Starâ      D/S to drill the well in a water depth of 1,720 m.  The significant NFW is located      in the northeastern area of the block approximately 32 km east south-east      of the nearest wells in the Atlanta Field. It is also located      approximately 74 km north-east of the northern edge of the Mero Field.   Shell is the operator of the      contract with 55% working interest and partners are CNOOC with 20% and QPI      with 25%.    On 16 September 2019, Shell was granted a permit by IBAMA to drill up to three new-field wildcats (NFWs) in the Alto CF Oeste P3 contract, ALTO_CF_O block. The permit grants the operator the right to drill up to three wells, one firm well and two contingent wells. Shell may choose the location of two of the contingent wells from three proposed locations. Shell originally filed its environmental permit request in February 2018.   Shell has plans to drill up to three new-field wildcats (NFWs) in the Alto CF Oeste P3 contract, ALTO_CF_O block after filing its environmental permit in February 2018. The Alto Cabo Frio Oeste structure is a western continuation of the Cabo Frio high with some separation from the easterly adjoining, larger structural closure of the Alto de Cabo Frio Central. The NFWs to be drilled will have proposed total depths of approximately 5,500 m to 6,000 m and will target the Barra Velha and Itapema formations of the pre-salt series in the Santos Basin. The drilling was expected to commence in the block during 2nd quarter 2019.The structure is potentially very large and depending on separation from the Alto do Cabo Frio structure, reservoir properties, and oil migration, it may be a large reservoir. The wells are located in the central area of the block and about 64 km north-east of the Mero field.  On 31 January 2018, the consortium of Shell as operator with 55% working interest, CNOOC 20%, and QPI with 25% was granted an official award for the Alto de Cabo Frio Oeste block from the 3rd PSC Pre-Salt Bid Round. The ANP changed the official denomination of the block to the Alto CF Oeste P3 contract, ALTO_CF_O block. Shell as operator with 55% working and with 20% partner CNOOC and 25% partner QPI, offered the minimum state take of profit oil of 22.87% and USD 106.38 million in total fixed bonus to be paid to the Brazilian government based on the USD to BRL exchange rate of the day of 1USD/3.29 BRL. There were no other bids for the block. The PSC contract has a seven-year exploration-evaluation phase and the minimum work program is to drill one exploration well. The minimum financial guaranty for the three-year period is USD 47.95 million which is less than the estimated cost of drilling a pre-salt exploration well.
ACFO (1-SHEL-031-RJS) nfw (Shell 55% op, CNOOCI 20%, Qatar Petr 25%) in Alto CF Oeste P3 contract, ALTO_CF_O block, target Barra Velha, oil shows report to ANP on 8 Nov '19. WD=1720m, PTD=5200m.