Contracts for the production testing of the Al Roidhat, Hiswah and Auqban oil discoveries have been awarded to Delta Engineering, Baker Hughes and Al-Mansoori Production Services. The Delta Engineering service rig will be mobilized on Sunday, February 29th and arrive on Block 9 within three days. The Al Roidhat, Qishn oil discovery will be the first well to be tested next week, with the production test expected to take approximately three weeks.
All contracts related to the drilling of the next two development wells in Yemen have been signed. The drilling company is currently mobilizing staff from China who are expected to arrive in Yemen on March 10th at which time the rig will be inspected prior to being moved to location. Each of the Al Roidhat 2 and Al Roidhat 3 wells is expected to take approximately one month to be drilled to the basement, in order to assess potential production opportunities both within and below the Qishn formation. It is expected that at least one of the wells will be production tested in order to establish reserves and production levels. Site preparation of Al Roidhat 2 commenced on February 18 and it is expected to be completed within the next two weeks. Both Al Roidhat 2 and 3 will be drilled employing 9 5/8 inch production casing rather than the 7 inch production casing that was utilized in Al Roidhat 1.
Lastly, the Company is close to finalizing arrangements with BGP International, a subsidiary of the Chinese National Petroleum Company, in order to initiate a 150 kilometer seismic program. These negotiations are expected to be finalized by the end of the month so that BGP can initiate the mobilization of staff and equipment by mid-March.
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