TG World Spuds Second Niger Well
TG World Energy Corp.
|Tuesday, April 10, 2007
TG World Energy has been advised by CNPC International Tenere Ltd., ("CNPCIT"), Operator of the Tenere Block, Niger, that CNPCIT has spud the second well in the Niger exploration program, Fachi West -1, on April 7, 2007. The drilling rig was released from the previous well, Saha -1 on February 25, 2007. The Operator has mobilised the rig northward across lateral dunes from the Saha - 1 location approximately 27 kms overland to the second location.
CNPCIT is a unit of the China National Petroleum Corporation ("CNPC"). The Tenere Concession is held 80% by CNPCIT and 20% by TG World Energy Inc., a wholly-owned subsidiary of TG World.
Certain information set out in this news release respecting anticipated exploration activities on the Tenere block constitutes forward-looking information. Readers should review the cautionary statement respecting forward-looking information that appears at the end of this news release.
TG World also provided additional information on the results of the first well, Saha - 1. The last announcement concerning the Saha-1 exploration well was made on February 28, 2007, at which time preliminary information respecting drill stem testing was reported. TG World has subsequently received more detailed technical information on the drill stem testing operations from CNPCIT.
Analysis confirms that one interval flowed oil in non-commercial quantities, along with water, on test. Sufficient data was recovered to indicate that a second interval tested is a tight reservoir.
"The test results from Saha-1 confirm the existence of a working hydrocarbon system in the Tenere Block," said TG World President and Chief Executive Officer, Cliff James. "While we would obviously have preferred a commercial discovery on the first well, this is frontier exploration and we'll definitely settle for this result."
"Importantly, analysis of the Saha-1 data suggests that the Fachi West -1 location remains a compelling prospect for the second well in the drilling program," Mr. James added.
TG World's analysis of the provided Saha - 1 test data indicates the presence of the following oil exploration play system elements:
- A working petroleum system, as indicated by oil on test, is reinforced by the drilling of two potential source rock intervals. Laboratory testing is scheduled to assess the richness and maturity of these two zones.
- Reservoir sandstones were encountered in the primary objective Sokor and Madama Formations. Sandstones were also encountered in the Donga Formation.
TG World has been advised by the Operator that integration of Saha-1 data into Tenere Concession mapping has commenced. Once all the data collected from Saha-1 is analysed and available for integration, the existing prospect inventory will be re-risked and re-ranked, and a selection is expected to be made for the third exploration well, scheduled for drilling after Fachi West - 1.
The Operator also advised that its seismic acquisition crew is currently acquiring data in its adjacent Bilma concession, to which TG World is not a party. Once the Bilma program is concluded, the Operator has advised that it intends to return the crew to the Tenere Block to begin acquisition of an additional 700 kms of 2D seismic.
TG World is a Calgary-based, junior international oil and gas exploration company. Through a wholly-owned subsidiary, TG World holds a 20% carried interest in the Tenere Block, an oil and gas concession in the Republic of Niger, Africa, measuring 71,155 square kilometers (17.3 million acres). The Tenere Block contains the northern half of the Termit - Tenere Rift. The southern half is adjacent to the Agadem Block, where six oil discoveries and one gas discovery have been announced. CNPCIT, a unit of CNPC, holds the other 80% of the Tenere concession and acts as operator of the project.
On March 18, 2006, TG World Energy Inc., a wholly-owned subsidiary of TG World, entered into a major exploration project through the formation of a joint venture with Brooks Range Petroleum Corporation. The BRPC / TG World Joint Venture ("JV") was formed as an exploration strategic alliance covering a large area of mutual interest on the Alaskan Central North Slope. The Company's indirect interest in the Central North Slope Alaska Joint Venture includes a 25 - 35% working interest in approximately 309,384 net acres of lease lands and an AMI under which additional lands may be acquired. The Company has a 35% working interest in the two to three well Gwydyr Bay program planned for the 2006/07 winter season.