Under the terms of the Agreement, Stratic will fund 33.33% of the first US$900,000 gross costs of the Calgan-2 well to earn a 25% working interest in the 123,000 acre permit. Toreador will retain 75% and operatorship through their wholly-owned subsidiary, Madison Oil Turkey Inc. Stratic will fund all subsequent costs on the permit at the 25% working interest level. The well will test a potential 9 million barrel oil prospect in the fractured Cretaceous limestones of the Karabogaz Formation. Further upside potential exists in the overlying limestones of the Sayindere and Saytepe Formations. In the event of success on Calgan-2, an untested prospect referred to as Calgan East lies within the permit with additional reserve potential of around 14 million barrels. The reserve estimates are based on recent mapping carried out by Toreador. It is anticipated that Calgan-2 will spud this week.
In the shallow waters of the Black Sea, Stratic, with partners Toreador and the Turkish national oil company ("TPAO"), has commenced the acquisition of a 190 square kilometer 3D seismic survey at a gross cost of US$5.3 million over the South Akcakoca area. Stratic discovered natural gas when it drilled the Ayazli-1 well in the third quarter of 2004 and tested gas at an aggregate rate of 15 million cubic feet (mmcf) per day from reservoir sands of Eocene age Kusuri Formation. Following the back-in by TPAO to the eight contiguous permits, Stratic is funding the seismic program and all future activity on the permits at a 12.25% working interest.
Based upon available information, it is estimated that the South Akcakoca area holds significant potential natural gas reserves. Early studies by Toreador suggest that an initial producible gas reserve of 80 to 100 Bcf would justify an early gas development in the area by late 2006 from as many as eight wells, each producing 5-7 mmcf of gas per day, a rate supported by the Ayazli-1 well test results. The new seismic will be used to ascertain gas distribution and more accurately predict reserves in the subsurface and aid in future appraisal and development drilling.
Most Popular Articles