The well is being drilled using Transocean's Sedco 709 semi-submersible rig and is expected to take about a month and the target depth is 8,530 feet. The well is being drilled on a fixed priced, turnkey basis. Syntroleum will announce results when drilling and potential testing are completed and Lundin Petroleum (technical adviser to the operator) has completed its preliminary review of the well results.
"We are optimistic about this well confirming commercial quantities of oil and gas in the Aje field," said Jack Holmes, president and CEO of Syntroleum. "If our reserve estimate is accurate, we think this field could be an ideal location for Syntroleum's unique marine-based GTL technology."
The Aje field was discovered in 1996 and the first appraisal well was drilled on this field in 1997, which proved the existence of oil and gas.
In January 2005, Syntroleum and Sovereign Oil and Gas Company announced they had completed the formation of an industry group to undertake the appraisal and development of Aje.
Other industry group participants in block OML 113 include Lundin Nigeria Limited (technical adviser), Palace Exploration Nigeria Limited, Challenger Minerals (Nigeria) Limited, P.R. Oil & Gas Nigeria Limited, Howard Energy Nigeria Limited and Yinka Folawiyo Petroleum Co. Ltd (operator). The OML 113 license covers about 413,000 acres located off western Nigeria near the border of Benin, Africa.
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