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Vintage Petroleum Announces First Successful Horizontal Well in Yemen

Source: www.gulfoilandgas.com 10/14/2004, Location: Middle East

Tulsa, Oklahoma – Vintage Petroleum, Inc. announced today that the An Nagyah #11 well in the Republic of Yemen has tested light (43 degree API) oil from the sub-salt Upper Lam formation. The well is the first horizontal well drilled in the field and is located between the #4 and #6 wells. It is also the seventh consecutive successful well drilled at the company’s An Nagyah field this year.

The An Nagyah #11 well was drilled horizontally to a total measured depth of 4,574 feet (1,394 meters), which is equivalent to 3,452 feet (1,052 meters) of true vertical depth. Electric log analysis indicates a gross interval of 587 feet (179 meters) that is oil bearing in this well. The well was completed over a 538 foot (164 meter) interval, between a measured depth of 3,816 and 4,354 feet (1,163 and 1,327 meters). The interval was tested at a stabilized flow rate of 3,100 barrels per day of light oil and 1.7 million cubic feet of natural gas per day on a 56/64 inch choke with 365 psi flowing tubing pressure. No formation water was produced during the test period. The An Nagyah #11 well will be equipped for early production via trucking and will be placed on production early next week. With the addition of the An Nagyah #11 well, combined gross productive capacity from the An Nagyah wells will be approximately 8,000 barrels (4,200 net) of oil per day.

With testing completed at the An Nagyah #11 well, the drilling rig is currently moving to the An Nagyah #12, which will be located between the #4 and #5 wells and will also be a horizontal well. Completion of the #12 horizontal well, along with a workover planned later inthe fourth quarter of 2004 should result in developed production capacity in excess of 10,000 (5,200 net) barrels of oil per day.

All of An Nagyah’s production is currently being trucked to a nearby facility until the permanent pipeline and processing facility are completed in the second quarter of 2005. The current trucking capacity is approximately 5,000 barrels of oil per day (2,600 net), however it is expected that trucking can be increased to 6,000+ barrels of oil per day (3,100 net) with the installation of additional tanks and facilities prior to year end. The permanent processing facility is being designed to process 10,000 gross (5,200 net) barrels of oil per day, with the potential to expand as additional capacity is warranted.


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