Gulfstream Resources Canada Ltd. signed an agreement to acquire an additional 25 percent participation interest in the 1976 Exploration and Production Sharing Agreement in Qatar, which includes the Al Rayyan oil field, the Block 13 exploration area and future opportunities in the North field.
As a result, Gulfstream's interests increase to 67.5 percent, including acquisition of a 15 percent interest announced in late August.
Based on current production levels and updated reserves, Gulfstream's working interest share of production from Al Rayyan increases to about 8,100 b/d and share of remaining proven reserves reached 53 million barrels.
The Al Rayyan field, operated by BP, produces 12,000 b/d of oil and is capable of producing 16,000 b/d from eight horizontal wells tied to a temporary production platform.
Approximately 25 million barrels have been produced from the field since start-up in late 1996.
A full field development and expansion plan was originally approved in mid-1998.
However, that expansion was delayed due to oil price erosion in late 1998 and early 1999, by the subsequent imposition of production controls and by BP's takeover of the previous operator, Arco, which was announced in early 1999.
Al Rayyan's replacement platform is planned; changeout is anticipated in early 2002.
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