The An Nagyah #10 well encountered the Upper Lam sandstones with a 33 meter oil bearing interval. A 26.0 meter reservoir interval in the oil bearing section was perforated between 1,030 and 1,056 meters. The perforated interval flowed at 1,547 barrels per day of light oil and 604 thousand cubic feet of natural gas per day on a 36/64 inch choke at 375 psi flowing pressure. No water was produced during the test period.
An Nagyah #10 is located 0.5 kilometers east of the An Nagyah #6 well which tested light sweet oil at 1,140 Bopd from a 29 meter perforated interval (April 28, 2004 announcement). The An Nagyah #10 well will be equipped for early production via trucking after the drilling rig is moved to An Nagyah #11 later this week. The An Nagyah #11 well is located northwest of the An Nagyah #6 well and is planned to be drilled as a horizontal well. Additional development wells in the An Nagyah pool are expected to be drilled in the fourth quarter of 2004 and into 2005.
The total production capability of the An Nagyah field is now approximately 5,000 Bopd. Production rates via trucking are planned to increase from the current 3,800 Bopd to approximately 5,000 Bopd (1,250 Bopd to TransGlobe) when the An Nagyah #10 well is equipped for production. Trucking operations will be phased out following the construction of a central production facility ("CPF") at An Nagyah and a 28 kilometer (18 mile) pipeline to the Jannah Hunt export pipeline. The pipeline and facilities are expected to be operational by mid 2005. The 10 inch pipeline is designed to allow an ultimate capacity of 80,000 Bopd so that future discoveries can be placed on stream quickly. The CPF is designed for an initial capacity of 10,000 Bopd (2,500 Bopd to TransGlobe), with expansion capabilities.
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