Circle Oil provided the following operational update for the Al-Amir SE-7 well which is being drilled in the N W Gemsa Development Lease, Egypt (Circle: 40% Working Interest).
The well Al- Amir SE-7X, intended to be a Kareem sands water injector, has been drilled to a depth of 9,580 ft and the 9 5/8" casing has been run and cemented into the top of the Kareem Formation shales. Preliminary analysis of open hole logging of this upper part of the well, indicates potential for hydrocarbons in the South Gharib Formation in the order of 6 ft in thickness. This interval is similar to that encountered in the Al Amir SE-6X and Al Ola-1X wells, but the interval has not been tested and, as planned, is now cased off. Drilling is ongoing to the Kareem sands target and to the deeper Lower Rudeis Formation with a prognosed TD of 16,750ft. Further announcements will be made in due course.
The current production rate from the NW Gemsa fields of Geyad and Al Amir SE is between 8,000 and 8,500 bopd (gross). 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. Gross production from start up in February 2009 through to end December 2010 was 4 MMBO.
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