Gulfsands Petroleum plc, the oil and gas production, exploration and development company with activities in Syria, Iraq, Tunisia, Italy and the U.S.A., is pleased to provide this update on operations in Syria.
Results of Khurbet East 102 Triassic Appraisal Well
Drilling, logging and well testing operations have now concluded at the Khurbet East 102 ("KHE-102") well, an appraisal well which has tested the structural elevation, reservoir quality and reservoir fluids present in the Triassic Butmah and Kurrachine Dolomite Formations on the north flank of the field some 2.3 kilometres north of the Khurbet East 101 well ("KHE-101") drilled earlier in 2011. Originally spudded on October 13th 2011, KHE-102 has encountered gas and oil in the Butmah Formation and the results of the well are interpreted to be generally consistent with pre-drill expectations.
The hydrocarbon columns and reservoir characteristics interpreted in the KHE 102 well are also seen as broadly confirming the Company's initial estimates of total recoverable hydrocarbon volumes from the Butmah Formation of 19.2 million barrels oil equivalent.
KHE-102 encountered the Butmah Formation at a depth of 2847 metres Measured Depth below rotary table ("m MD brt"), 2442 metres True Vertical Depth below mean sea level ("m TVD bmsl"), some 16 metres shallow to prognosis. Three consecutive core sections each of 12 metres length were cut, with hydrocarbons shows from core sections and drill cuttings indicating the presence of both gas and oil within the Formation. An open-hole flow test was conducted over the interval 2847-2895m MD brt (2442-2490 m TVD bmsl). The Butmah Formation flowed wet gas at an average rate of 10.7 million cubic feet of gas per day ("MMcfpd") over a 5 hour period on a 32/64" choke, with an associated hydrocarbon liquid rate of 524 barrels ("bbl") per day of 58 degree API condensate. No formation water was produced. The testing operation was terminated prematurely for safety reasons following the failure of a down-hole packer supporting the well test completion string.
Interpretation of results from the flow test, electrical wireline log data and reservoir pressure data recovered over the Butmah Formation, confirms the presence of an oil reservoir with an overlying gas cap as seen in the original oil discovery at KHE-101. The KHE-102 production test initially flowed wet gas with a condensate yield of 49 bbls per MMcf, but as a result of the failure of the packer, it was not possible to subsequently flow oil from the oil leg.
The well was subsequently deepened to the Triassic Kurrachine Dolomite Formation, which was encountered 7 metres shallow to prognosis at 3119m MD brt (2714m TVD bmsl). In spite of extensive shows of light oil being present on drill cuttings and a single core section recovered below this depth, the Kurrachine Dolomite failed to flow oil during an open-hole test, even following acidification of the reservoir interval, probably as a result of the absence of natural fractures within the low permeability reservoir interval at this location.