Artumas Encouraged by Mnazi Bay Tests


Mnazi Bay, Tanzania
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Artumas Group Inc. announced that the recent production testing of the MB-2 and MB-3 appraisal wells, as well as the MS-1X discovery well, have provided further support for the presence of world-scale hydrocarbon resources in the Mnazi Bay Concession in Tanzania.

Gas flow rates from each of the Mnazi Bay wells exceeded Artumas expectations for production potential. The natural gas flow rates were also accompanied by liquid hydrocarbons that flowed during the production tests. The produced liquids range from 25 to 27 degrees API gravity, which is normally consistent with medium-gravity crude oiI. Cumulative production of hydrocarbon liquids during the production testing of MB-2, MB-3 and MS-1X totaled 89 barrels.

Artumas is undertaking a program of independent laboratory testing to better understand the nature of the liquid hydrocarbons produced from its Mnazi Bay wells.

Artumas is currently gathering 2D seismic data over the Mnazi Bay Concession, which will be used to define the specific area over which a 3D seismic survey will be conducted. The 3D seismic will provide important information about the Mnazi Bay reservoir, which will improve development planning and ultimately lower the cost of development of the field. 3D seismic gathered over other areas of the Mnazi Bay concession will significantly improve the imaging of exploration leads and prospects, which will in turn improve the chance of success for future exploration wells to be drilled on the Concession. This 3D seismic survey will be initiated during the second half of 2007 with exploration drilling planned next year.

A summary of the recent long term production testing from the completed interval in each of the Mnazi Bay wells is as follows:

Mnazi Bay-2 (MB-2) Production Testing

  • Production testing and buildup program covered a total of 50 days.
  • The D, G and I reservoirs were not tested as the well is completed as an F reservoir producer.
  • Final flow of 10.7 mmscfd was tested from a 19.5 foot interval of the completed F reservoir on a 28/64" choke with a tubing head pressure of 2446 psi.
  • A total of 15 barrels of 25 API oil was recovered.

Mnazi Bay-3 (MB-3) Production Testing

  • Production testing and buildup program covered a total of 70 days.
  • The C, D, F and G reservoirs were not tested as the well is completed as a G reservoir producer
  • Final flow of 10.9 mmscfd was tested from a 24.5 foot interval of the completed G reservoir on a 28/64" choke with a tubing head pressure of 2469 psi.
  • A total of 14 barrels of 25 API oil was recovered.

Msimbati-1X (MS-1X) Production Testing

  • Production testing and buildup program forecast to last approximately 50 days.
  • The K1, K3 and F reservoirs were not tested as the well is completed as a K2 reservoir producer.
  • Final flow of 9.3 mmscfd was tested from a 30.5 foot interval of the completed K-2 reservoir on a 28/64" choke with a tubing head pressure of 2153 psi.
  • A total of 60 barrels of 27 API oil was recovered.

The production of hydrocarbon liquids during extended production testing is, in and of itself, an encouraging development. Further work remains to be completed to determine (i) whether the hydrocarbon liquids reside in a separate phase (crude oil) within the reservoir, and (ii) whether the hydrocarbon liquids are present in commercial volumes. The planned seismic acquisition and subsequent drilling program will help to provide answers to these important questions.

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