Calgary-based TransGlobe Energy Corporation announced the appraisal well at An Nagyah #4 on Block S-1 in the Republic of Yemen has tested light sweet oil from the Upper Lam formation. The Canadian firm holds a 25 percent working interest in Yemen’s Block S-1.
The An Nagyah #4 well was drilled to a total depth of 1,547 meters and suspended as a potential oil well after flowing at a stabilized rate of 1,320 barrels of light (45 degree API) oil per day on a 48 hour test.
The An Nagyah #4 well encountered the Upper Lam sandstones and found a thicker gross reservoir section (93 meters gross thickness). Better porosity and permeability are indicated on the open hole logs than found at An Nagyah #2.
Log and pressure analysis indicate a 35 meter gas bearing interval and a 58 meter oil bearing interval are present. A 30-meter reservoir interval in the oil bearing section was perforated between 1,032 and 1,065 meters. The perforated interval flow tested at 1,320 barrels of light oil and 0.8 million cubic feet of natural gas per day on a 36/64 inch choke. No water was produced during the test period.
The An Nagyah #4 well has proved the continuity and quality of the Upper Lam reservoir. An Nagyah #4 is located two kilometers west of the An Nagyah #2 well which tested light sweet oil at 1,091 Bopd from a gross 28 meter oil reservoir. The successful appraisal well at An Nagyah #4 is anticipated to lead to development of the field.
The An Nagyah structural closure is mapped by 3-D seismic data and the four wells drilled on the structure to date. An estimate of reserves can be calculated for the pool now that the gas/oil and the oil/water contacts are defined by the wells.
TransGlobe's management has mapped the Upper Lam oil pool over an area of 15 square kilometers. An independent reservoir engineering firm has been contracted to determine proven and probable reserves. TransGlobe has also contracted an engineering firm with experience in Yemen oil development projects to prepare a facility design and preliminary cost estimate for the development of the An Nagyah field.
The reserves estimates and development cost estimates will determine if sufficient reserves have been discovered to declare commerciality and proceed with development.
The primary focus for 2003 will be the evaluation of the An Nagyah light oil discovery, which could lead to the declaration of a commercial oil project prior to year end. The Lam reservoir encountered at An Nagyah is a new producing horizon in Yemen.
Its discovery opens up a new exploration focus for Block S-1, according to a company press release. In addition to the An Nagyah development evaluation, the current drilling program results are being integrated into the Company's extensive seismic database to define future exploration drilling prospects. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
