LONDON (Alliance News) - Gulfsands Petroleum PLC saw its shares rise Monday morning after it said it was pleased with the initial flow it achieved at the Dardara Southeast 1 well in the Rharb Centre Permit in Northern Morocco.
The company saw its shares rise last week after it said it had completed drilling the Dardara Southeast 1 well two days ahead of schedule and had encountered a gas bearing reservoir of "excellent quality", its second consecutive successful gas exploration well on Rharb Centre Permit.
On Monday, it said it had now completed the perforating, completion and clean-up operations at the well, and the well flowed at an average gas rate of 7.1 million standard cubic feet per day on a 32/64th" choke with a stable well head pressure of 1,230 pounds per square inch, and with no associated formation water production or sand production.
It is now suspending the well as a future production well, and moving its drilling rig to the Douar Ouled Balkhair drilling location, where gas exploration well DOB-1 will be spudded later this month, starting an operation expected to take 28 days.
The Dardara Southeast 1 well can be connected to existing local infrastructure so that gas production can start in coming months as long as Gulfsands finalises arrangements with ONHYM, the company said.
"We are very pleased with the flow result from well DRC-1, the performance of which is consistent with the apparent excellent quality of the reservoir observed from drilling and wire line log information. We look forward to receiving the results from our next exploration well in the Rharb Centre Permit over the next few weeks," Chief Executive Mahdi Sajjad said in a statement.
Gulfsands Petroleum shares were up 7.0% at 30.50 pence Monday morning.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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