Oil & Gas Corporate News
Gulfsands Petroleum (LON:GPX) (HOLD, £3.00) (GPX, 320.5p, ? (0.47%)) announced that the Yousefieh South-1 vertical exploration well, in Block 26 Syria, has reached TD at 2100m. The top of the primary objective, the Cretaceous "Massive" reservoir, was encountered 41m deep to prognosis and analysis of the core along with the wire-line logs indicated a net 10.8m column of oil bearing reservoir with an average porosity of 19.7% and average oil saturation of 61.6%. An oil-water contact may be present at a similar depth to the contact depth encountered in the Yousefieh field approximately 2km to the north. The oil-bearing formation was flow tested under nitrogen lift conditions, but only minor non-commercial volumes of 16oAPI oil and water were recovered to surface. The poor flow performance may relate to the viscous nature of the oil, possible formation damage and the close proximity to the oil- water contact. The well will be further flow tested following plug-back and acidification of the formation via a rig-less operation to be conducted mid-October, an operation that has proved very successful in improving production performance at the Yousefieh Field. The rig will now be mobilised for the drilling of the Khurbet East-18 vertical delineation well, located on the north-west flank of the Khurbet East Field. Drilling and evaluation of this well is expected to require approximately 30 days. Also due to the large remaining drilling inventory in Block 26 the Company has signed a contract for a second drilling rig. The first well in the campaign for this rig is the Zahraa-1 exploration well located in the far north-east portion of the Block. It will be drilled as a "sole risk" well with Gulfsands having a 100% interest in the well and any subsequent discovery, subject to the Company's partner in the Block having the right, in certain circumstances, to "back into" a 50% interest in any discovery. The ZAH-1 exploration well will evaluate a structure similar, on trend and adjacent to the neighbouring producing Karatchok oil field. The drilling location was selected based on interpretation of 3D seismic data acquired over the prospect area. The primary targets for the well are the Cretaceous Shiranish and Massive formations, and the well is planned to drill to a total measured depth of 2600m. The well should spud in mid-October and operations are expected…
