The Tasour #7 stepout well, which commenced drilling September 4, 2002, has been drilled to total depth and will be cased as a potential dual zone oil well. The Tasour #7 well encountered the main Qishn S1A producing zone in a structurally higher position than the existing producers, thereby extending the field to the south, in an area that was previously assumed to be below the oil water contact. In addition to the full oil column in the main producing zone, the well also discovered a new pool in the sand below the main zone. This new zone also has an indicated full oil column. It is expected that the well will be completed and placed on production during the next two weeks. The main zone in Tasour #7 is expected to be similar to the adjacent Tasour #6 well which commenced production at 7,200 Bpd of clean oil. Production from the new zone would be incremental. Additional appraisal drilling of 2-3 more wells will be contingent on the production performance of Tasour #7 and re-mapping the main field extension and new pool discovery. The results from Tasour # 7 are expected to increase the recoverable oil reserves for the Tasour Field.
Following the completion of Tasour #7 the drilling rig will be moved to a non-owned adjacent block for two development wells, as part of a multi-well rig sharing contract to reduce costs. It is expected that the drilling rig will be available to the Block 32 Joint Venture group in late December 2002, to drill an exploratory prospect at Al Ghoraf #1 on the western portion of the Block. Following Al Ghoraf #1, additional appraisal well(s) may be drilled at Tasour to evaluate the main pool extension and new pool discovery at Tasour #7.
The exploration well, Osaylan #1, commenced drilling on September 15, 2002 targeting the Alif/Lam prospect and is expected to reach total depth in mid October. Following the drilling and completion/testing of Osaylan #1, the rig is scheduled to move to An Nagyah #2 to evaluate the An Nagyah structure previously drilled by Shell. An Nagyah #1 had an indicated 57 meters (187 feet) of gas over 8.5 meters (28 feet) of oil in the Lam formation. The third exploration well will either appraise Osaylan #1, An Nagyah #2 or test one of several other exploration prospects identified on the Company's 3-D seismic data base.
TransGlobe Energy holds a 13.81% working interest in Block 32 and holds a 25% working interest in Block S-1.
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