The first of the six wells is scheduled to spud on July 22, 2004 and will be the fourth appraisal well in the Al Roidhat Qishn pool. The well will be drilled to the basement, penetrating all geological horizons. After this well is completed, the drilling rig will be moved to a new pool prospect (South Roidhat) approximately five km southwest of the Al Roidhat 1 discovery well, in order to drill an initial exploration well. This new pool was identified as a result of the 2004 seismic acquisition program.
Following the drilling of the South Roidhat exploration well, the drilling rig will be moved to a drilling prospect on the top of the plateau, situated approximately seven km south-east of Al Roidhat 1. The prospect, known as Ras Noor is an independent Qishn structure and has an aerial extent of approximately 22 square km. Depending on the results of this well, the drilling program for the remainder of the year may be altered to further assess the Ras Noor structure. Irrespective of the specific well program, Calvalley intends to drill continuously until the end of the year with only a one to two week delay between the completion of one well and the spud of the next.
The production testing of the Al Roidhat 2, Saar formation, commenced on July 4th, 2004 and has been suspended pending further assessment of the well. The Company is currently awaiting the third party engineering assessment of the Auqban test, which was completed in June. The results of these two tests will impact the development strategy for Block 9, as Calvalley and its partners are of the view that blending the production from Al Roidhat with oil and/or condensate from another structure on the Block will optimize production economics.
Ed Shimoon, Calvalley Chairman and CEO stated, "The current drilling program is a continuation of Calvalley's program of commercial evaluation of Block 9. As Operator, we are excited about its prospects and look forward to a busy work program over the remainder of the year."
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