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24 Feb 2009 07:00
Emerald Energy Plc
24 February 2009
Operations Update - Syria, Block 26
Emerald Energy Plc ("Emerald" or the "Company") would like to provide the following update on operations in Block 26, Syria.
Yousefieh No.2 Appraisal Well Result
Drilling and evaluation operations have been completed at the Yousefieh No.2 appraisal well, located approximately 1.8 kilometres east of the Yousefieh No.1 discovery.
The Yousefieh No.2 well, drilled to a total depth of 2,070 metres, targeted the same Cretaceous reservoir as encountered in Yousefieh No.1 but close to the interpreted eastern limit of this stratigraphic accumulation where a significantly thinner reservoir section was expected.
Based on wireline logging and cores recovered while drilling, the well encountered approximately 16 metres of net potential hydrocarbon pay with an average porosity of approximately 16%. An open-hole production test of the reservoir interval recovered quantities of oil and water but did not establish continuous production at surface. A liner will be run in the well and the reservoir interval may be re-tested at a later date using a workover rig.
As expected in the pre-drill estimation, the Yousefieh No.2 well encountered the reservoir with less thickness and lower reservoir quality than seen in Yousefieh No.1. This variation is consistent with a stratigraphic carbonate accumulation such as the Yousefieh discovery. The data acquired in this well will be used to refine the understanding of these lateral variations in the geological and reservoir modelling of the accumulation and to assist in development planning.
The Yousefieh discovery is located close to existing infrastructure, with the Yousefieh No.1 surface location approximately 3 kilometres from the production facilities in the Khurbet East field.
Yousefieh No.1 Flow Test
A cased-hole flow test has been conducted in the Yousefieh No.1 discovery well. The whole 63 metre net oil pay interval was open to flow as an ineffective cement bond behind the casing provided poor vertical isolation over the interval. The well flowed, under natural flow and through a 48/64 inch choke, at an average rate of approximately 1,460 barrels of oil per day over a 4 hour period with a water cut of up 5%, and approximately 570 barrels of oil per day through a 32/64 inch choke over a 12 hour period. These results compare favourably with the open-hole test run previously over the top 19 metres of reservoir which recorded an oil rate of approximately 900 barrels per day through a 48/64 inch choke.
Remedial cementation of the production liner is planned to isolate the water producing zone prior to commencement of production from the well.
Khurbet East No.8 Delineation Well
The drilling rig, following demobilisation from the Yousefieh No.2 well location, is moving to drill a delineation well in the southern part of the Khurbet East field.
The Khurbet East No.8 well, located 2.3 kilometres to the south of the Khurbet East No.3 production well, is positioned to investigate reservoir properties and determine the oil-water contact in this area and may have the potential to be used as a water disposal well in the future. Drilling and evaluation of the Khurbet East No.8 well is expected to take approximately 45 days. The results of this well are planned to be included in the independent reserves evaluation currently being conducted and expected to be completed in the second quarter of 2009.
Khurbet East Field Production
The Khurbet East field is producing at an average oil rate of approximately 10,500 barrels per day from 5 wells (2 vertical and 3 horizontal producers) with cumulative oil production from the field in excess of 2 million barrels. Only trace water has been produced to date and the field oil production rate has been reduced from previously reported levels as part of a reservoir management strategy to extend this period of water-free production.
The previously announced project to expand the processing capacity of the early production facility to 18,000 barrels per day is underway and is now expected to be completed by the end of the first half of 2009. Three additional production wells are planned to be drilled, following Khurbet East No.8, to deliver additional production for the expanded facilities capacity without requiring increased production from existing wells.
3D Seismic Data Acquisition
Acquisition of the 640 square kilometre 3D seismic survey, around the existing Khurbet East and Naour West 3D seismic surveys, is proceeding well with approximately 30% of the survey completed to date. The survey is intended to assist in the further exploration of the new exploration play demonstrated by the Yousefieh discovery.
Emerald's Chief Executive Officer, Angus MacAskill, said:
"We are pleased with the continued progress in Block 26, including the continued excellent production performance in the Khurbet East field. The advances in the appraisal of the Yousefieh discovery will assist in determining whether additional capacity may be required in the Khurbet East full field facilities to allow for an incremental development of Yousefieh through this facility."
Enquiries: Lisa Hibberd 020 7925 2440
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