IPM Recompletes Selmo-5 for Production at Turkey's Selmo Oil Field



Incremental Petroleum (IPM) has provided operational updates for its Turkey and USA operations.

SELMO-5 BACK ON PRODUCTION AFTER 13 YEARS

The company has announced the successful recompletion of Selmo-5 at our wholly owned Selmo oil field in southeast Turkey. This is the third well that IPM has successfully brought back to production after many years of suspension, by carrying out a thoroughly planned workover operation. Selmo-5 is now producing about 80 bopd.

Selmo-5 was drilled in 1964 by Mobil. The well produced at a peak rate of 5,464 bopd for a short period in 1966. Over the years, it steadily decreased to about 200 bopd in 1995, when the well cut to water, probably caused by a shallow casing split. Since 1995, three different operators have each undertaken unsuccessful but extensive workovers to bring the well back on production.

In October 2008 after careful planning, IPM worked over the well using our own rig and crew, and utilizing a casing roller, drilling out a portion of an old cement plug, and re-perforating a previously productive interval. These operations resulted in oil production from Selmo-5 being restored for the first time in 13 years.

EDIRNE DRILLING CAMPIGN ABOUT TO BEGIN

This week, IPM's rig will begin the 1600km move from Selmo to Edirne (IPM 55%), in western Turkey.
Three wells will be drilled in this year’s campaign. Bati Yagci-1 and Ikihoyuk-2 are planned to add redundancy and production capacity. The third well, Kuzey Ikihoyuk-1 is in an untested fault block and has an associated higher risk. All three wells are located on significant seismic anomalies. The gross budgeted cost of each well is about US $650,000. Negotiations are well advanced with potential gas purchasers, with first gas sales anticipated in the second half of 2009.

USA UPDATE

IPM is awaiting approval from relevant environmental authorities to spud shallow wells on the McFlurrey (2 wells) and Egypt (1 well) projects. IPM will earn 50% of each of these exciting projects. The wells should be drilled as soon as possible of these approvals being granted.

 


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