Epsilon Updates Drilling Operations in Yemen's Block 41

Epsilon Energy, with its wholly owned subsidiary Epsilon Energy Yemen ltd. (EEYL) and its partners Oil and Gas Mine Company (OGMC), Geopetrol Shabwa Corp. and Yemen Oil and Gas Corporation (YOGC), are providing the following update of their drilling program on Block 41 in the Republic of Yemen.

Al Waya-2 Side Track

While drilling the Al Waya-2 Side Track, Epsilon encountered numerous mechanical issues. Due to the expenses involved, the decision was made to pull out of the hole and abandon the well. Unfortunately the Naifa formation, the primary target, was never reached and no firm decision about the size of the Al Waya field oil accumulation can be made at this time.

The Al Waya-2 Side Track was kicked off at a depth of 524 meters and drilled directionally at a 40 degree inclination to a depth of 1,450 meters. At this depth, a complete loss circulation situation was encountered due to a fault or highly fractured zone. Different grades of loss circulation material were used to try to cure the losses without success. The decision was made to drill blindly to make sure that the (fault and/or fractured zone) was drilled before spotting a cement plug. The well was drilled blindly an additional 27 meters. While pulling out of the hole to run in with the cement stringer, the bottom hole assembly (BHA) got stuck. After multiple attempts, the BHA was freed. While running back in the hole to clean the well, Epsilon had to ream down with high torque which caused the BHA to part. The parted BHA was recovered during a fishing attempt. An extra attempt was made to clean the hole but the reaming down progress was too slow. The decision was then made to pull out of hole and abandon the well.


The Kaninah-1, the next well in the Block 41 drilling program, is expected to commence drilling in approximately two weeks.

West Mahrawa-2

Drilling operations for the West Mahrawa-2 well commenced of September 26th and are continuing.


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