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 operations updates.
KHE-9 Development Well
The KHE-9 well located approximately one kilometre south of KHE-1 was spudded on 9th April as the first of three development wells planned to support the expansion of the Khurbet East Early Production Facility (EPF). The well was drilled to a total depth of 1986 metres and encountered the top of the Cretaceous Massive reservoir at 1,937 metres. Preliminary analysis of the wire-line logs and drilling data indicates that the well encountered a 26 metre gross (23 metre net) oil-bearing interval within the Massive reservoir with average porosity of approximately 22% over the net oil-bearing section.
The KHE-9 well was tested in an open-hole DST over the gross reservoir interval. Over the final 12 hours of a 24 hour test period and under natural flow, the well flowed at an average stabilized oil rate of approximately 3040 bopd through a 48/64 inch choke, with a bulk sediment and water content of 3-4% and excellent Flowing Tubing Head Pressure of approximately 220 psi. Preliminary analysis of the test and wire-line data indicates very good reservoir permeability, consistent with the existing wells in the central portion of the Khurbet East Field. This vertical well will now be completed as a production well and will then be tied-in to the Khurbet East Early Production Facility ("EPF"). After completion of operations on KHE-9, the rig will commence drilling of the KHE-10 development well.
As has been the case with all wells drilled within the Khurbet East Field, a definitive oil-water contact was not identified in this well as the primary reservoir section lies directly above a relatively impermeable and low porosity section.
Expansion of Khurbet East Early Production Facility
The expansion of the capacity of the EPF to 18,000 barrels per day is proceeding on schedule with commissioning of the new equipment expected to commence in June with production start-up expected early in the third quarter.
Exploration 3D Seismic Programme
Acquisition of the 850 square kilometre 3D seismic programme in Block 26 continues on schedule with acquisition of data over approximately 90% of the total programme area now completed. The Company expects that the current acquisition rate will be maintained and that the programme will be completed in mid May 2009. Delivery of final processed data is expected late in the third quarter of 2009, with interpretation of these data to commence immediately thereafter.
Eugene Island 57 Gas Production
Due to further delays in repairs to the third party owned gas sales pipeline, resumption of gas production from the Eugene Island 57 Field in the Gulf of Mexico has been deferred until at least August 2009. The Company had previously anticipated that repairs to this pipeline would be completed during May. Production from the Field has been shut in since immediately prior to Hurricane Ike in September 2008 and immediately after tie-in operations on two new wells which were completed in August 2008.
Ric Malcolm, Gulfsands CEO, said
"We are very pleased with the results of the KHE-9 well as it indicates a southern extension of the highly productive central portion of the Khurbet East Field and will shortly provide an incremental increase in production when the expanded EPF has commenced operations. We are also pleased with excellent progress made on the acquisition of the large 3D seismic programme in Block 26 and look forward to receipt of the final processed data later this year. The further delay to restoration of gas production at Eugene Island 57 in the Gulf of Mexico is disappointing, but we look forward to resumption of gas production on this field later this year."
This release has been approved by Richard Malcolm, Chief Executive of Gulfsands Petroleum Plc who has a Bachelor of Science degree in Geology with 29 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.
