MOG13 Aug 2012 08:04
The result of interpreting these data has yielded three main target horizons:
· the more mature and shallower Lower Eocene horizon, where four main prospects and one lead have been identified in the area covered by the 3D seismic dataset only, with un-risked potential oil in place of up to 1.5 billion barrels (upside case) and Prospective resources of approximately 300 million barrels. Moreover, four leads are identified in Area 4, which are not covered by the 3D seismic data, with un-risked potential oil in place of 5 billion barrels (mean case) and Prospective resources of approximately 1.15 billion barrels;
· the Middle Cretaceous horizon, where three leads have been identified that indicate an un-risked potential oil in place of 200 million barrels (mean case), and Prospective resources of approximately 50 million barrels; and
· a deeper, presumed Jurassic, horizon where the new 3D seismic data have revealed three large structural leads. Their prospectivity and risk/volumetric assessment are still ongoing.
MOG is currently seeking a partner to fund its share of the first commitment well, expected to cost approximately USD 30 million, and anticipates finalising a farm-out arrangement prior to year-end. The first well is expected to target a large dip-closed prospect "Hagar Qim" that is predicted to comprise Lower Eocene/Paleocene ramp and reefal carbonates analogous to the Ashtart Field complex in Tunisia, and to the Intisar fields in the Sirte Basin, Libya. Work by MOG on the most recent long offset high quality 3D data set indicates Hagar Qim has potential recoverable Prospective resources of 130 to 200 million barrels of oil, assuming a recovery rate of 25 to 35%. The well is expected to take 60 days to drill to a target depth of 2,500 metres.
An extensive Basin Modelling study has recently been finalised covering source rock presence, maturity, hydrocarbon migration and filling of the prospects. The results are positive, confirming the capability of the expected oil-prone source rocks, in particular the Lower Fahdene Formation (Albian) and the Bahloul Formation (Cenomanian-Turonian) to potentially generate substantial volumes of hydrocarbons for migration into the identified prospects from the principal kitchen area, represented by the Melita-Medina graben and its extension to the south of Area 4.
The Company's selected Independent Competent Person, ERC Equipoise Ltd, is currently finalising its interpretation of the prospectivity and economic viability of Area 4, which is due to be completed by the end of September.
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