Circle Oil updated its activities in Egypt.
The Al Ola-1X well has now been placed on stream following receipt of official permission for a long-term production test. The Kareem Rahmi sand was perforated from 9,782 to 9,802 ft MD and is flowing at approximately 1,400 bopd on a 28/64" choke. The overall production from the Geyad and Al Amir SE fields is currently averaging 8,500 bopd. These production levels are now being managed to allow the planned water injection wells to be drilled and the waterflood to become fully operational. As previously announced, for an interim period, production is expected to be 7,000-8,000 bopd after which oil production levels will be systematically and incrementally increased together with the planned gas production once the waterflood is in full operation. Further development drilling is also envisaged with the drilling of Geyad-3.
In this regard, the Al Amir SE-7X water injector was spud on November 27, 2010 and is drilling ahead (08:00 hrs, 19 Dec 2010) in the Belayim Formation at a depth of 8,677 ft MD. This well is also planned to drill deeper to test the Lower Rudeis potential previously identified in wells Al Amir SE-6 and Al Ola-1X. The planned TD of the well is at 16,750 ft MD. Fluid offtake from the Geyad and Al Amir SE fields will continue to be managed in the light of good oil field practice as the waterflood is initiated and becomes operational and proven effective to maximize recovery.
Prof. Chris Green, CEO, said, "I am pleased to report the continuing successful maturation of the NW Gemsa Development. Operations continue to schedule and the processes are in place to ensure optimization of this resource for full long-term production and revenue earning."
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