Oil & Gas Corporate News
Gulfsands Petroleum (LON:GPX) (HOLD, £3.00) (GPX, 285p, ? (0.71%)) announced through ADX Energy Ltd, the operator of the Kerkouane Exploration Licence offshore Tunisia and the adjacent Pantelleria Exploration Permit in Southern Italy, that drilling operations on the Lambouka-1 well have been completed. Analysis of the final suite of wireline logs has supported earlier results from logging while drilling that two hydrocarbon bearing zones are present in the Abiod Formation - the primary objective for the Lambouka-1 well. The nature of the hydrocarbons is likely to be comprised of gas in the upper interval and gas and possibly condensate in the lower interval based on the hydrocarbon shows recorded from the cuttings while drilling. Although the gas shows were not as strong as encountered in the same Abiod interval in the nearby Dougga-1 discovery, no carbon dioxide (CO2) was detected while drilling the Abiod Formation unlike in the Dougga-1 discovery. A net pay of approximately 23m has been interpreted by the Operator within the two reservoir units. This compares favourably to the nearby Dougga discovery which is interpreted to have a net pay of 14m in the Abiod and an assessed mean resource of 74MMboe. Interpretation of 3D seismic data suggests there is up-dip potential from the crest of the structure to the Lambouka-1 well location of approximately 250m. In addition based on wireline interpretation, the first interpreted water bearing reservoir was encountered approximately 230m below the upper hydrocarbon zone. Specialist wireline logs and drilling data indicate that the Abiod limestone formation at Lambouka is extensively fractured, which may be a positive factor in reservoir productivity. As a result of ongoing drilling fluid losses and increasing well bore deterioration it has not been possible to safely recover fluid samples or pressure data from the Abiod formation. Ongoing operations in the existing wellbore have become increasingly difficult and the productivity of the reservoir from this well bore is very likely to have been adversely effected by losses and use of lost circulation materials there by diminishing the ability to obtain representative flow rates from any drill stem test. The joint venture is considering whether to suspend or plug and abandon the Lambouka-1 well in order to test the Abiod Formation at a later date. A decision on this matter is likely to depend upon an assessment of whether a new well or suspension and future…
