Oil & Gas Corporate News
Gulfsands Petroleum (LON:GPX) (BUY, £3.00) (GPX, 292.3p, ? (0.43%)) provided the following update on the Company's operations at Block 26, Syria where Gulfsands holds a 50% interest and acts as operator.Block 26 Fields Production Performance - Gross oil production from the Khurbet East and Yousefieh fields combined has been increased to approximately 20,000 barrels of oil per day ("bopd") during the month of July. Gross cumulative oil production from the two fields has now passed 9.8 million barrels. The Khurbet East field continues to sustain production of around 18,000 bopd with minimal decline in reservoir pressure (less than 1%). Production of oil has been underway at the Yousefieh field since start-up on 24 April 2010 from two vertical wells, Yousefieh-1 and 3. Early production and pressure data from the field indicates that reservoir performance is better than had been expected. During May and June a highly successful acid stimulation programme was conducted which succeeded in removing the wellbore formation damage identified as being present in both wells, and which had been limiting production performance. As a result, field production has been increased from an initial 1,200 bopd to a stable rate of 2,000 bopd, and at a higher wellhead flowing pressure. No formation water is being produced.Khurbet East Field Drilling Results - Horizontal production well Khurbet East 15H ("KHE-15H") targeting the producing Cretaceous Massive formation in the north central crestal area of the Khurbet East field has been successfully drilled, completed and tied-back to the EPF. The well encountered the Massive reservoir approximately 4 metres deeper than prognosed, and a horizontal reservoir section of 210 metres was drilled and completed open hole. KHE-15H is currently producing oil at around 2,500 bopd with no associated production of formation water. Placing the KHE-15 well on production at this rate has enabled off-take from other Khurbet East wells to be reduced as part of the Company's reservoir management strategy directed at optimizing the future recovery of oil.Vertical delineation well Khurbet East 16 ("KHE-16"), drilled as a north-easterly step out from the central crestal area of the Khurbet East field, was designed to evaluate the potential for an extension of the crestal karstified reservoir along a ridge that has been interpreted to lie to the north-east. The KHE-16 well was drilled 1.5 kilometres to the north-east of discovery well KHE-1 and encountered the Cretaceous Massive formation at…
