The An Nagyah #15 well was drilled horizontally to a total measured depth of 6,493 feet (1,979 meters), which is equivalent to 3,468 feet (1,057 meters) of true vertical depth. Electric log analysis indicates a gross interval of 2,451 feet (747 meters) that is oil bearing in this well. The interval was tested at a stabilized rate of 2,625 barrels per day of light oil, 2.3 million cubic feet per day of natural gas and 84 barrels of water per day flowing at 575 pounds per square inch tubing pressure on a 48/64 inch choke. An additional horizontal development well is planned to be drilled during the third quarter of 2005.
With testing completed at the An Nagyah #15 well, the drilling rig is moving 31 miles (50 km) to the southeast to drill the Wadi Markhah #1 prospect. This 6,562 foot (2,000 meter) vertical, exploratory well will be drilled to test Jurassic Lam and Alif formations.
All of the An Nagyah field production is being trucked to a nearby facility for processing and transportation to an export terminal until the planned pipeline is operational. The trucking capacity is approximately 7,500 barrels of oil per day (3,900 net). An 18 mile (28 km) pipeline to the processing facility is under construction and scheduled to be operational late in the second quarter of 2005 with initial throughput anticipated at 10,000 barrels of oil per day (5,200 net). A central processing facility with an initial capacity of 10,000 to 12,000 gross (5,200 to 6,250 net) barrels of oil per day is scheduled to start up during the third quarter of 2005.
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