Tanganyika Oil has reported that the Production Sharing Agreement signed with the Syrian Petroleum Company and the Syrian Government over the Oudeh block in northeastern Syria has been ratified by the Syrian Parliament and President.
Tanganyika Oil intends to proceed immediately with development of the Oudeh field, commencing with well workovers and production drilling and will also include feasibility studies and field trials. The objective is to increase oil production and recovery using the latest drilling and enhanced recovery techniques.
The Oudeh field contains world class oil reserves. An independent technical report from Sproule International has been received which estimates 3P recoverable oil reserves to be in the order of 166 million barrels, of which 84 million barrels are proven and probable and 82 million possible. Net present value, discounted at 10 percent, of the company's interest in the 3P reserves is estimated at $162 million or $6.38 per share. Total oil in place contained in the Oudeh Field is estimated at over 2.4 billion barrels.
The Oudeh block encompasses 192 square kilometers located in the main producing region of northeastern Syria. The block is within a major oil trend which extends from the Arabian Gulf, Kuwait and through Iraq, Iran and into Syria. The oil in the Oudeh field is hosted in three carbonate reservoirs, the Shiranish, Butmah and Kurachine, which occur in the field at average depths of 1,600, 2,300 and 2,500 meters respectively. The majority of the reserves have been assigned to the Shiranish reservoir. The Butmah and Kurachine reservoirs provide for significant reserve upside.
Pursuant to the Production Sharing Agreement, Tanganyika will share in the increased production achieved. Production from the Oudeh Field in November 2002 averaged 1,125 barrels per day (bpd). Sproule's evaluation and independent studies from Computer Modeling Group indicate a potential for sustained oil production of over 30,000 bpd for several years is achievable upon full development.
Oil will be shipped via the existing pipeline to the Tartous export terminal on the Mediterranean Coast. Oil prices used for the basis of Sproule's evaluation are the Sproule Brent Forecast less an appropriate price differential. The Company has free access to gas reserves from the Butmah formation for use in enhanced recovery schemes or pressure maintenance through gas injection. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
