Oil & Gas Corporate News
Circle Oil (LON:COP) (BUY, £0.90) (COP, 31.75p, ? (0.78%)) announced that the Al Amir 1-ST2 well, originally drilled in 2008, has been tested for production. The initial flow rate of 2 August 2010 was 278 bopd on a 128/64" choke using a sucker rod pump. The productive interval was perforated from 4,730-4,778 ft MD and consists of porous carbonates within the evaporitic sequence of the South Gharib Formation. The original DST of that zone conducted in 2008 produced up to 416 bopd of 16°API oil using nitrogen lift. Once the South Gharib production test and production engineering system is completed the well is planned to be put on production and the oil trucked to the Zeitco terminal. The Al Ola X-1 exploration/appraisal well, spudded on 15 July 2010 and is targeted to the south of the southern boundary of the Al Amir SE development lease in order to appraise a southern extension to the Kareem accumulation of the field. The well, at 7,335 feet MD on 8 August 2010, will also be deepened to test a secondary objective in the Lower Rudeis Formation, where oil and gas were recently tested in the Al Amir SE6 well, and is now expected to reach a total depth of 13,700 feet. Current production from the Al Amir, Al Amir SE and Geyad fields in the NW Gemsa Concession is 9,200-9,500 bopd.
Comment: The Al Amir field is a heavy oil field that contains only a small proportion of the ultimate recoverable resources attributable to the NW Gemsa lease. The Al Ola X-1 well should provide meaningful data on the extension of the Al Amir SE field. The release above does not change any of our estimates and we remain positive on the stock.
Dana Petroleum Plc (LON:DNX) (DNX, 1712p, ? (0.23%)) reported the successful flow testing of the recently drilled appraisal well at the Blackbird oil field, in the UK Central North Sea. The 20/2a-9 well, operated by Nexen Petroleum UK, was drilled in a water depth of approximately 367 feet to a total measured depth of 12,000 feet, targeting a high quality Upper Jurassic oil discovery. Following detailed evaluation of all the gathered well data, it is now assessed that the well encountered 389 feet of gross pay and 90 feet of net pay of good quality oil bearing reservoir sands. The well…
