Gulfsands provided an update on its operations in Tunisia.
ADX, the Operator of the Chorbane Block onshore Tunisia, has signed a Letter of Intent with Challenger Limited for the use of the Rig 37 onshore drilling unit to drill the planned 2150m Sidi Daher exploration well. The spud date for the well is currently expected to be in early February, subject to completion of civil works and receipt of approvals from the Tunisian authorities.
The Sidi Daher prospect contains multiple potential reservoir intervals of Tertiary and Cretaceous age that will be evaluated with this well. ADX has estimated prospective resources of 175 billion cubic feet of gas in the Eocene aged Metlaoui Formation and 44 million barrels of oil in the Cretaceous aged Abiod Formation. Additional resource potential exists in the Douleb and Bireno Members of the Cretaceous aged Aleg Formation.
Gulfsands will pay 80% of the first US $5 million in drilling costs for the Sidi Daher well and 40% of the drilling costs in excess of US $5 million for this well in order to earn a 40% working interest in the Chorbane Block. The total estimated cost of the well is US $6.9 million (US $4.8 million net to Gulfsands). The well is expected to take approximately 45 days to drill and evaluate.
Ric Malcolm, Gulfsands CEO, said, "We look forward to drilling our first exploration well in the Chorbane Block. As the prospect is reasonably close to existing infrastructure, a commercially attractive discovery will have the potential to be developed and brought into production quite rapidly."
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