Canada’s Drucker Inc. announced that Tanganyika Oil Company Ltd., in which Drucker has a million shares or 4.1 percent of the shares outstanding, has reported on May 26, 2003 that it has signed a Production Sharing Agreement with the state oil company, Syrian Petroleum Company over the giant Oudeh oil field in northeastern Syria.
Over three years in negotiations, the anticipated oil reserves and expected production levels from the Oudeh Field will enhance greatly the profile of Tanganyika Oil. The Oudeh Block covers 192 square kilometer and is part of a major oil trend extending from the Arabian Gulf, Kuwait, and through Iraq, Iran and into Syria—among one of the richest oil regions in the world.
The three producing reservoirs of the Oudeh Field are the Shiranish, Butmah and Kurachina. The Shiranish hosts most of the reserves and will be the immediate focus of development. In-house estimates by Tanganyika Oil indicate at least 600 million barrels oil-in-place for the Shiranish reservoir.
Significant reserve potential exists for the Butmah and Kurachina reservoirs as well. A third-party reserves report is currently being completed and is expected to be available by mid-June.
Tanganyika Oil will be completing further engineering studies over the next while to finalize best exploitation techniques for this largely untapped large oilfield. Development will commence immediately upon ratification of the Production Sharing Agreement by the Syrian Government, expected within the next couple of months.
First revenue is targeted for early 2004. Generally, the in-house studied development plan—supplemented by third party evaluation—calls for multi-lateral horizontal wells with drilling staged over a five to eight year period, thus allowing for efficient utilization of existing and new facilities.
The staged drilling and construction schedule would allow for sustainable production levels of 30,000 barrels of oil per day (bopd) or more for several years. Current production levels are in the order of 600 bopd.
Pursuant to the Production Sharing Agreement, Tanganyika Oil will share in the increased production achieved. Enhanced recovery techniques such as gas and/or steam injection are also being considered.
Implementation of gas and/or steam injection could potentially increase recoverable reserves greatly. According to Lukas H. Lundin, president of Tanganyika Oil the Oudeh Field will be developed fully starting immediately.
The management of Drucker is also actively seeking potential investments. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
