'This is a significant event in Rally's rapid growth where we now have a second source of revenue that is sufficient to fund our ongoing development and exploration activities in Pakistan' said Abby Badwi, President and CEO of the Corporation.
The Zindapir exploration well has been named Al Baraka North-1 and is expected to commence drilling on July 20, 2007. This well is located 37 kilometers south of the Salsabil Field on the Safed Koh concession and will be drilled to a depth of 2,100 meters to test a large seismically defined structural closure and planned to be completed in 60 days.
EGYPT OPERATIONS UPDATE Average production during the second quarter was 5,900 boe/d, 6% lower than the first quarter due primarily to a production interruption of approximately 900 boe/d for 20 days from well No.63 while it underwent a workover operation. In addition, the drilling rig at the Issaran Field was down for scheduled repairs for 12 days in April and several conventional development-drilling wells were re-scheduled to the third and fourth quarters. This allowed the Corporation to accelerate the drilling of six thermal and two West Issaran delineation wells.
All eleven wells drilled during the second quarter were completed as oil wells and well No.63 is back on production at an average rate of 800 boe/d.
Average production during the month of June was 6,386 boe/d including production of approximately 1,000 boe/d from eight thermal wells. Second quarter exit production from the Issaran field was 6,591 boe/d. Four more thermal wells will be starting their first production cycle this month. Conventional development drilling is expected to resume immediately with 12 Nukhul wells scheduled for the remainder of this year and 11 thermal Upper Dolomite wells planned for the fourth quarter, utilizing a second drilling rig expected to arrive at the Issaran Field in October 2007.
The Issaran Field average oil price for the second quarter was US$43.48/bbl, 24% higher than US$35.05/bbl for the first quarter of 2007 and represents 63% of the corresponding Brent oil price.
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