Anatolia Energy Corp. announced that its partner, Çalık Enerji San. ve Tic. AŞ., has commenced drilling at Giremir-1, the initial exploration well on the Sinan Licence in Turkey, where Anatolia can earn a 50 percent interest.
The Giremir-1 commitment well will satisfy the drilling requirements on the Sinan Licence pursuant to its Joint Venture agreement with Calik and as required by the General Directorate of Petroleum Affairs ("GDPA"), Turkey's energy regulatory body. Drilling of Giremir-1 satisfies the work commitment of the Sinan Licence during its initial four year exploration period and satisfies the district drilling obligation which includes the Bismil Licences.
Giremir-1 is expected to be drilled to a depth of approximately 1,250 meters for a total cost of $1.4 million. The deepest horizon to be drilled will be the Upper Sinan Formation. Although its hydrocarbon potential is unknown in this area, the Paleocene age reservoir produces oil in 5 fields in southeastern Turkey; most notably at the Selmo Field which is located approximately 29 miles (47 kilometers) northeast of the Giremir well.
The Sinan and Bismil Licences encompass 17,833 (8,917 net) and 245,699 gross (122,850 net) acres, respectively, and are well-located within the Dadas Shale Oil trend as well as the Cretaceous and Ordovician conventional oil plays. Activity focused on the Dadas Shale continues to gain momentum with numerous drilling and testing operations currently on-going in the area, including the drilling of the first well of the Shell and Turkish Petroleum ("TPAO") joint venture approximately 12 miles (20 kilometers) from the Company's Sinan Licence border. Under the terms of the TPAO-Shell agreement announced in November 2011, Shell is expected to drill five wells into the Dadas Shale formation.
Upcoming Dadas Shale Activity
Anatolia continues to work towards the optimal design of a fracture stimulation test of the Silurian Dadas Shale on the Bismil Licence. The tests are due to be carried out in 2013 with the aim of flowing hydrocarbons from the shale. A large volume of physical and geochemical data extracted from the shale cores has led management to anticipate a positive fracture response from the shale. The Bismil and Sinan Licences in Turkey provide the Company with exposure to 263,532 gross acres (131,766 net) of Dadas Shale and/or conventional oil prospective acreage. The Company's independent third party resource evaluator, Ryder Scott, has allocated 94 MMBbls (47 MMBbls net) of unrisked prospective resources related to the Dadas Shale on the Bismil and Sinan Licences (June 11, 2012 news release).
Amending JV Terms
The Company and Calik recently amended the Joint Venture agreement for Sinan, Antep and Besni such that the final payment to trust of $6.5 million due March 31, 2013 has been extended to August 1, 2013 to better reflect the timing of the respective work programs. In addition, the parties agreed to amend the JV Supplemental agreement with an option to earn an additional 25 percent at Bismil (Dadas Shale) such that the payments to trust have been amended to $1.5 million on August 1, 2013 and $10 million on March 31, 2014 to better reflect the timing of the respective work programs.
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