Repsol Logs Pay in Reggane Basin in Algeria

Repsol YPF has successfully drilled and tested another gas discovery in Reggane Nord in the Algerian desert. The KL-2 exploration well is in a new isolated structure called Kahlouche, and follows upon the recently announced successful drilling of two other wells in the Reggane Basin.

The KL-2 well tested at a depth of 3,983 meters in the Lower Devonian (Siegenian) geological level with a preliminary production rate of 763,000 m3/day, a choke of 32/64" and a well-head pressure of 4,081 psi. The same well also tested positive at a depth of 2,360 meters in the Carboniferous (Tournasian) level with a preliminary gas flow of 483,000 m3/day, a choke of 32/64" and a well-head pressure of 2,649 psi.

This discovery confirms and reinforces the potential of this block not only because of the preliminary production levels that were obtained, but also because this is the first time that gas has been found at the Carboniferous level in this basin. This also represents the possibility of sooner declaring the gas resources in the Reggane Nord area as being commercial.

This latest discovery is in addition to last month's news that the Repsol YPF led consortium in association with Sonatrach had successfully drilled two new wells in the Reggane Basin: the RG-5 (dilineation) well yielding a preliminary production rate of 636,000 m3/day and the SLI-1 (exploration) a preliminary production rate of 100,000 m3/day.

Reggane Nord comprises the blocks 351c-352c in the Reggane Basin, situated in Algeria's Sahara Desert. The area of these blocks is about 8,566 km2. The Joint Venture of these blocks is formed by a consortium led by Repsol YPF (33,75%, Operator), RWE Dea (22,50%), Edison (18,75%) and the national Algerian company Sonatrach (25%).

Repsol YPF and its foreign partners were awarded these contracts in the III Bidding Round for Exploration Blocks called for the Energy and Mines Ministry and Sonatrach in 2002.

The consortium led by Repsol YPF in association with Sonatrach is implementing an ambitious exploration and delineation plan in Algeria in 2006 and 2007, and which includes the drilling of at least eight more wells. An additional seismic program of 650 km of 2D is already in progress.

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