The field, which lies in 540-730 m of water, is thought to hold 230 million bbl of oil reserves.

Total said this was the first deepwater offshore development in the country. Insulated umbilicals and flowlines will bring the oil to the floating production unit, from which it will be exported via a new 16-in., 80-km pipeline to Total-operated Djeno onshore terminal.

Drilling complex, extended-reach wells is a key technological trait of Moho-Bilondo. "One innovative feature is the use of bottomhole gas injection in a deep offshore project. Despite the complex development plan, the reservoir was brought on stream in a record 33 months after the signature of construction contracts," Total said. Signal Oil and Gas

The company is evaluating development options for the Moho Marine Nord 1 and Nord 2 wells, drilled in 2007 in the northern part of the license (OGJ, Apr. 9, 2007, Newsletter). Both revealed significant additional resources of good-quality oil.

Total, with 53.5%, operates the license. Other parters are Chevron Overseas Congo Ltd. 31.5% and Congo's state-owned Societe Nationale des Petroles du Congo 15%.

Up 44% from the previous year, spending in 2006 totaled nearly $110 billion, according to the most recent Joint Association Survey on Drilling Costs (JAS). Increases in the number of wells and total footage drilled pushed the average cost per well and per foot to their highest levels ever. The 2006 average cost for oil wells, gas wells, and dry holes surged 22% to $2.1 million.

For the 19th consecutive year, drilling outlays for gas exceeded those for oil. In 2006, expenditures to drill 30,610 gas wells accounted for 54% of the total drilling spending, up from 51% a year earlier. Oil drilling expenditures, for 16,670 wells, dropped to 34% of the total, down from 35% of total drilling costs. Dry holes accounted for the remaining 12% of outlays. Signal Oil

In 2006, spending for exploration wells was $14.7 billion, up 19% from a year earlier, while development well expenditures jumped 47% to $93.8 billion, according to the JAS. The survey also shows that the average depth of oil wells drilled in 2006 declined 9%, but the average depth of gas wells drilled climbed almost 4%.

Gas production from Vernon field in Jackson Parish, La., has stabilized at a net 130 MMcfd of gas equivalent for the past 8 months since EXCO Resources Inc., Dallas, acquired the field from Anadarko Petroleum Corp. in March 2007 for $1.5 billion.

EXCO said it has 280 drilling locations at Vernon compared with 15 identified at the time of the acquisition. The field produces from the Jurassic Lower Cotton Valley formation.

One recent completion flowed 10.3 MMcfd of gas equivalent, the highest initial production rate from a new well since the acquisition, EXCO said. Six wells drilled and completed in the quarter ended Mar. 31 averaged initial production rates of 6.5 MMcfd of gas equavalent.

EXCO is adding a fourth rig at Vernon and plans to drill 31 wells there in 2008. It has expanded the field's southern and western limits and is reprocessing seismic as it evaluates another 65,000 net prospective acres.

High oil prices in France last year continued to pull along both exploration and development investments, which jumped to €160.69 million from €87.81 million. But exploration investments are expected to decrease slightly this year to €157.8 million.

Exploration outlays in 2007 increased fourfold over 2006 to €81 million due to several wildcats drilled onshore, with six wells completed and one offshore hole drilled in the Bay of Biscay that proved dry. Budgets for this year bank on only €69.65 million in outlays because no offshore wells are planned.

Development and production outlays in 2007 jumped to €79.7 million from €69.6 million in 2006, with a high work volume compared with 2006. This year, investments are expected to be higher, reaching €88.15 million.

Exploration acreage available in France increased to 19,509 sq km from 12,920 sq km, a 50% hike due to 13 exclusive permits granted and one extension, while only one permit expired. Eleven permits are in proved oil areas-nine in the Paris basin and two in the Aquitaine basin. There also is one in the Jura area and another in southeastern France near Nimes.

UK-based Celtic Energy, new to France's exploration and production scene, was granted three permits; one targeting unconventional gas in the Jura area of mideastern France and two in the Aquitaine basin.

Other newcomers are UK-based Europa Oil & Gas, which obtained a permit east of Lacq in the Aquitaine basin; Canada's Exceed, also holding a permit east of Lacq; and French company Millenium Geoventure Oil & Gas, which was granted a permit in northern France, near Boulogne.

For the second year running, no seismic surveys were run.