Vintage Petroleum announces successful well in Yemen
Vintage Petroleum has reported that the An Nagyah #5 well in the Republic of Yemen has tested light oil from the sub-salt Upper Lam formation.
The well, a western extension and the third appraisal well to the An Nagyah #2 discovery well in 2002, was drilled to continue the evaluation of the sub-salt Lam formation.
Approximately $10 million of Vintage's total non-acquisition budget of $225 million is allocated to the drilling of seven wells in Yemen during 2004. Included in this total is an allocation of one million dollars for the drilling of an appraisal well near the company's Harmel discovery to improve understanding of the productive formations and aid in determining the aerial extent of those formations. Vintage is the operator and has a 75 percent working interest in the 285,000 acre Commercial Development area within the S-1 Damis block.
Field production operations began this week with the An Nagyah #4 well placed on production. With the addition of the An Nagyah #5 well, combined daily oil production is anticipated to grow to approximately 2,500 barrels gross during the second quarter 2004.
Vintage will spend approximately $17 million during 2004 for design and construction of a pipeline and processing facility at An Nagyah, anticipated to be completed in the second quarter of 2005, to permit the production of greater volumes and streamline transportation. The processing facility is being designed to process 10,000 gross barrels of oil per day, with the potential to expand as additional capacity is warranted. — (menareport.com)
© 2004 Mena Report (www.menareport.com)