Forward Drilling Program
On June 15, 2005 FCP announced a planned forward drilling program targeted at increasing the current level of 2P reserves on Ledjmet Block 405b. FCP has now contracted three drilling rigs to drill in Algeria and has received approval from Sonatrach for the first seven wells of its drilling program on Block 405b.
FCP has agreed to an initial seven well drilling program with Sonatrach which will further delineate existing discoveries and explore undrilled structures with the intention of enabling FCP to grow its proved plus probable (2P) reserves estimates.
LES - 3 well - commenced drilling November 21, 2005 LEW - 2 well - estimated spud date February 2006 ZER - 1 well - estimated spud date February 2006 MZLN - 2 well - estimated spud date March 2006 GSME - 1 well - estimated spud date April 2006 MZLS - 2 well - estimated spud date May 2006 GSM - 1 well - estimated spud date July 2006FCP commenced drilling the LES-3 well on November 21, 2005. The LES-3 well is located 4.5 km northeast of the LES-2 well, a gas and condensate discovery drilled in 2004. The LES-3 well is anticipated to be at total depth late January 2006. In addition to the LES-3 well, the drill pads have been prepared for the LEW-2, MZLN-2 and MZLS-2 delineation wells which are being drilled to further assess and evaluate the reserves encountered in the respective discovery wells drilled during 2004.
The Company is currently preparing the surface locations for the GSME-1 and GSM-1 wells. Each of these wells will test the southern extension of the structural segments and field boundaries discovered by the LES-2 and MZLS-1 gas wells.
Planned to commence drilling in February 2006, the ZER-1 well is targeting a structural closure in the northwestern part of Block 405b and represents the final exploration commitment well under the 405b production sharing contract FCP has with Sonatrach, the national oil company of Algeria.
Three drilling rigs under contract
In order to achieve this program, FCP has recently increased the number of drilling rigs under contract in Algeria to three. This represents a new level of drilling activity for the Company. The second of these rigs is planned to be operating in February, 2006 and the third rig is expected to follow shortly afterwards.
In addition to the drilling plans on Block 405b, a testing and reservoir stimulation work program has commenced on a number of zones encountered in the MLE-6, LEW-1, LEC-1, MZLN-1 and MZLS-1 wells. It is anticipated that this program will continue through to the end of the first quarter of 2006. This program is intended to verify well log interpretations and assess potential production rates from selected geological intervals.
Richard Anderson, President and CEO commented: "FCP has had an active second half getting the drilling program underway and progressing the commercialisation strategy. With John van der Welle as CFO and Shane O'Leary as COO and an intense drilling schedule in place we are positioned to achieve our twin objectives of increasing 2P reserves and generating first production."
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