Oil & Gas Corporate News
Circle Oil (BUY, £0.72) (COP, 34.75p, ? (2.21%)) announced that the Geyad-2X ST1 appraisal well has been successfully drilled and tested in the onshore North West Gemsa Concession in Egypt. The Company confirmed that the Kareem Formation Sandstones under test flowed 42oAPI oil at sustained average rates of 3,850bopd and 4.62MMscfd of gas using a 48/64" choke from the upper of two identified pay zones. The well, which is the second appraisal well to be drilled on the Geyad discovery area, is being completed and prepared for connection. Log result interpretations indicate that the total net thickness of the two pay zones is approximately 32ft. The upper tested pay zone identified in the Kareem Shagar Sandstone is 14ft thick. The lower untested pay zone in the Kareem Rahmi Sandstone is 18ft thick and will be further evaluated at a later date. A full technical evaluation of all the results is underway to permit development planning and is a precursor to further assessment of the resource potential. An assessment of reserves has not yet been completed. The drilling rig will now move to commence drilling the Al-Amir SE-5 well which is the fourth appraisal well in the Al-Amir SE discovery area. The primary target is again the Kareem Formation, but this well is being drilled primarily to delineate a reservoir boundary which is required for technical reasons and therefore the well may not become a producer. The North West Gemsa Concession partners include Vegas Oil and Gas (50% and operator); Circle Oil (40%) and Sea Dragon Energy (10% interest).
Comment: This appraisal success is an excellent result for the Company. Current production in NW Gemsa is 7,350bopd and it will soon increase as Geyad-2X ST1 and the heavier oil from Al Amir start contributing; estimated production then will certainly exceed 9,000bopd gross.
Gulfsands Petroleum (GPX, 258.5p, (1.71%)) announced an update on the drillin
g of the Khurbet East-14 delineation well, located approximately 1km north of delineation well KHE-12 and approximately 4.9km south of the KHE-1 discovery well. The well was drilled to 2045m measured depth (MD), and encountered the top of the Cretaceous Massive Formation at a MD of 1988m. The preliminary interpretation of drilling data and wireline logs identified a gross oil column at the top of the Massive Formation of 14m, with a net oil pay…
