Incremental Petroleum (IPM) has signed an agreement with TransAtlantic Petroleum Corp. which will fully fund the drilling of a well to 3200m on the Atesler prospect (formally known as Kocakoy) on License 4262 in Southeast Turkey. Incremental will retain a 40% equity in the license.
The Atesler prospect is adjacent to over 300 million barrels of produced oil, with proven reservoir, source and seal. Preparations are in hand to build the location, a rig has been contracted and the well is expected to spud in the coming six to eight weeks. The transaction is subject to final documentation and approval of the Turkish General Directorate of Petroleum Affairs. TransAtlantic will become Operator of the license.
The play is a low risk structural rollover with a C90 resource estimate of 0.5 million barrels. An upside fault-seal play with lateral seal provided by shaley rocks across the fault-face has a mean resource (C50) of 13 million bbl on IPM's license. The fault has demonstrated sealing capacity at a deeper level. Offset well data suggests anticipated reservoir porosity averages about 16%, with initial productivity exceeding several thousand bopd of light oil. The regional infrastructure is good.
Turkey has an extremely attractive fiscal regime, with 12.5% royalty and 20% corporation tax. Any discovery could be commercialised within months, with a potential net present unrisked value to Incremental in excess of A$100 million.
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