'I am very pleased by the achievements of the Group in recent months and I am looking forward to an active exploration and development drilling program in the remainder of 2004.
The Galata Gas Field is now on production and daily volumes for June are expected to be 26.5 MMcfpd, which is expected to increase to in excess of 50 MMcfpd in the peak winter production months. We are now planning to drill two exploration wells later this summer on Block 91-III in the Black Sea, offshore Bulgaria. The first well will drill the Varna West prospect, which is analogous to and similar in size to the Galata Gas Field, and the second will test the Oligocene Channel play, where some potentially very large structures have been mapped using 2-D seismic.
A second drilling rig is expected to arrive in late June to continue the appraisal/development drilling program on the South Batra field with the objective to increase gross production from this field to in excess of 100 MMcfpd by the end of this year. Further exploration drilling, principally on the El Mansoura Concession, is scheduled for later this year. An additional 270 km(2) of 3-D seismic data is currently being acquired within the concession in the South Mansoura area.
A continuous development drilling program is currently in progress on our properties in the USA, with 9 new wells drilled so far in 2004. In line with our expectations this drilling program has converted a further 400 Mboe of previously undeveloped reserves into production. Construction of the Jalmat Unit water injection facilities will commence later this month and it is expected that the waterflood will be activated by the end of the third quarter. A further 13 development wells are currently scheduled for 2004.
In February 2004 we completed a placing of 6.75 million shares at 175 pence per share to raise approximately £11 million. As announced on 10 June 2004, the Company will issue, subject to shareholder approval at the Extraordinary General Meeting on 5 July 2004, a further 6.8 million shares at 210 pence per share which will further significantly broaden our institutional shareholder base.
For the first time, the Group now has significant production and operating cashflow in each of its three areas of operations and current trading is in line with market expectations.'
Most Popular Articles