Gulfsands Petroleum plc, the oil and gas production, exploration and development company with activities in Syria, Iraq, and the U.S.A., is pleased to provide the following update on the Company's operations at Block 26, Syria, where Gulfsands holds a 50% interest and acts as operator.
Khurbet East-14 Delineation Well Intersects Oil Column and Flows Oil to Surface
The Khurbet East ("KHE")-14 delineation well, located approximately 1 kilometre north of delineation well KHE-12 and approximately 4.9 kilometres south of the KHE-1 discovery well, was drilled to a total depth of 2045 metres measured depth ("MD") and 1626 metres true vertical depth below mean sea level ("TVD SS") with the primary objective being to intersect the oil-water contact in the Khurbet East field.
The well encountered the top of the Cretaceous Massive Formation at a measured depth ("MD") of 1988 metres (1571 metres TVD SS) and the preliminary interpretation of drilling data and wireline logs identified a gross oil column at the top of the Massive Formation of 14 metres, with a net oil pay of 6 metres and average porosity within the pay zone of 22%.
An open-hole drill-stem test was conducted over the interval 1982-1998 metres MD (1564-1580 metres TVD SS). The KHE-14 well flowed oil of 27 degrees API at an average rate of 613 barrels of oil per day ("bopd") for a 7 hour period on a 2" choke using nitrogen lift. Negligible quantities of formation water were produced during this flow period.
Although a definitive oil-water contact was not observed on wireline logs or drilling data, the wireline logs indicates that oil was produced during this test from a depth of 1998 metres MD (1580 metres TVD SS), 9 metres deeper than the previous deepest oil flow observed in the field in well KHE 13.
A new field ODT has accordingly been interpreted at 1580 metres TVD SS
These test results from KHE-14 and in particular the deeper ODT are expected to have positive implications for reserves assessments which are currently being undertaken on the Khurbet East field and which will be the subject of a separate announcement at the beginning of the Second Quarter 2010.
Khurbet East-13 Well Commences Production
Well KHE-13, which was drilled and completed at the end of last year, has been tied back to the Khurbet East Early Production Facility, located approximately 3.5 kilometres north-east of the KHE-13 surface location. The well is currently producing at approximately 310 bopd under natural flow and with negligible amounts of formation water. The production performance exhibited by well KHE-13 is in line with expectations and consistent with its location within the field; well productivity is not as strong as that demonstrated by the high performance production wells located near the crest of the field, but is superior to that observed from wells drilled in the southern flank. Well KHE-13 will be a candidate for production enhancement later this year via installation of permanent artificial lift equipment.
Zaman-1 Exploration Well Spudded
Zaman-1, the first well in the 2010 exploration drilling programme, was spudded on Friday 15th January. The Zaman prospect is located approximately 4.5 kilometres to the south of the Khurbet East Field as currently delineated and targets the same Cretaceous Massive formation under production at the Khurbet East field. Gross unrisked speculative reserves for this prospect are estimated to be in the order of 23 to 35 million barrels of oil. Drilling operations on the Zaman-1 well are anticipated to take approximately 45 days to complete.
Ric Malcolm, Gulfsands CEO, said
"The positive and significant results from KHE-14 delineation well in addition to the start of oil production from KHE-13 both represent very significant milestones in the continuing development of the Khurbet East Field from both a production and potential reserves perspective. With the spudding of the Zaman-1 exploration well, the Company now commences an active and potentially exciting exploration drilling programme of four wells during 2010."
This release has been approved by Richard Malcolm, Chief Executive of Gulfsands Petroleum Plc who has a Bachelor of Science degree in Geology with 30 years of experience in petroleum exploration and management. Mr. Malcolm has consented to the inclusion of the technical information in this release in the form and context in which it appears.