"We are very pleased with the results from our first two horizontal wells in Syria. The high levels of production, which are expected to increase further with the installation of pumps with greater capacity, shows that our plans for the Oudeh field are right. We will now pursue an aggressive work program with more horizontal wells being drilled in order to be able to reach a total production from the field of more than 30,000 barrels of oil per day," comments Lukas H. Lundin, president of Tanganyika Oil.
The Oudeh Field is within a large, 192 square kilometer, development block in northeastern Syria which is estimated to contain 2.4 billion barrels oil in place (Sproule, June 2003). As the field is fully developed, total production levels are expected to reach over 30,000 barrels of oil per day (Sproule, June 2003). Tanganyika has a 100% interest in the field and is the operator. The Company is pursuing its fast track development of the Oudeh Field and its aggressive 2004 work program.
Oudeh #136, which has a horizontal hole section of approximately 1000m, was initially put on production in May at a rate of 150 - 160 bopd with a low capacity PCP pump to enable clean up and data gathering for design of a stimulation program and sizing of a larger PCP pump. The well was stimulated last week utilizing coiled tubing to pump a diesel and solvent wash followed by a diverted matrix acid treatment. The well was then re-completed with a higher PCP pump capable of producing +/-600 bopd. The well was placed on production on the 9th July 2004 and the latest test data shows the well to be continuing to clean up and to be producing a total fluid rate of 637 bfpd with an oil rate of 414 bopd. The initial indications from the data currently being collected are that the well potential will surpass the numerical simulation predicted rate of +/-600 bopd.
Oudeh #137, which has a horizontal hole section of approximately 1500m, was completed with a 600 bopd PCP pump set deep in the deviated section of the wellbore and was put on production on the 13th July 2004. The well is currently producing at total fluid rates of +/-250 bfpd, with oil rates of +/-220 bopd, on a very restricted pump rate of only 1/3 capacity for clean up. As with Oudeh #136, when the clean up is completed later this week, the well potential is expected to exceed the numerical simulation predicted flow rates.
The flowrates achieved from Oudeh #136 and Oudeh #137 are considerably in excess of any previously achieved flowrates in the Oudeh Field and indicate that the concept of drilling extended reach wells in the Shiranish formation is a valid strategy for effective reserves recovery.
Total Field Production Rate - as a result of the completions on Oudeh #136 and Oudeh #137 and following the return to production of OD #5H and OD #1H after the successful completion of workovers, the field production rate was measured at +1500 bopd, on 17th July 2004, with both Oudeh #136 and Oudeh #137 on restricted production during the clean up phases. Further wellwork, including solvent washes, stimulation and pump size increases is planned for the next three months, which is expected to further increase the field rate.
Oudeh #138 is the third Shiranish development well to be drilled from the six well drilling pad was spudded at 0600hrs on the 11th July 2004. The 13 3/8" casing has been set at 445m and the well is currently drilling ahead in 12 1/4" hole, starting the deviation section at +/-1100m. Oudeh #138 is being drilled to a different design than that used in OD #136 and Oudeh #137, rather than drilling a 6" hole through the reservoir interval and completing it with a 4 1/2" liner. Oudeh #138 will have 1300m of horizontal 8 1/2" hole drilled through the reservoir section and will be completed with a 7" liner. This will enable a submersible pump to be run in the horizontal section of the hole and will further enhance the ultimate production potential of the well compared to Oudeh #136 and Oudeh #137 and should further increase the effectiveness of reserves recovery from the Shiranish Reservoir. The well is planned for 22 days for drilling and completion.
3D Seismic - a Letter of Intent has been issued to BGP Syria Inc. to carry out a 3D Seismic Data Acquisition Survey over the Oudeh Field. The survey will cover the total field area, as the previous survey, recorded by the Syrian Petroleum Company in 1995, covered only the central area of the field and further potential development prospects, which could add significantly to the Oudeh Field Reserves, are indicated by the 2D Seismic lines to exist in the areas of the field not covered by this existing 3D coverage. These prospects require the acquisition and interpretation of new 3D Seismic in order that they can be fully defined for drilling in 2005.
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