Circle Oil announced that the Geyad-2X ST1 appraisal well has been successfully drilled and tested in the onshore North West Gemsa Concession in Egypt.
Circle is delighted to confirm that the Kareem Formation Sandstones under test flowed 42° API oil at sustained average rates of 3,850 bopd and 4.62 MMscfd of gas using a 48/64" choke from the upper of two identified pay zones. The well, which is the second appraisal well to be drilled on the Geyad discovery area, is being completed and prepared for connection.
Log result interpretations indicate that the total net thickness of the two pay zones is approximately 32 feet. The upper tested pay zone identified in the Kareem Shagar Sandstone is 14 feet thick. The lower untested pay zone in the Kareem Rahmi Sandstone is 18 feet thick and will be further evaluated at a later date.
A full technical evaluation of all the results is underway to permit development planning and is a precursor to further assessment of the resource potential. An assessment of reserves has not yet been completed.
The Geyad-2X well encountered the prognosed Kareem sands at both Shagar and Rahmi levels as well as additional potential hydrocarbon bearing sands in the Upper Rudeis and intersected the prognosed deeper targeted Nubia sands. The deeper Nubia sands proved to be water bearing, the Upper Rudeis sands were tight and the Kareem Sandstones were encountered with high Water Saturation ("Sw") and provided valuable information on the Oil Water Contact ("OWC)" for the reservoir. With the increased knowledge of this contact an updip sidetrack location was planned (Geyad-2X ST1) and successfully drilled to intersect the Kareem Sands.
The NW Gemsa concession, covering an area of over 260 square kilometers, lies about 300 kilometers southeast of Cairo in a partially unexplored area of the Gulf of Suez Basin. The concession agreement includes the right of conversion to a production license of 20 years, plus extensions, in the event of commercial discoveries. The North West Gemsa Concession partners include: Vegas Oil and Gas (50% interest and operator); Circle Oil plc (40% interest); and Sea Dragon Energy (10% interest).
The drilling rig will now move to commence drilling the Al-Amir SE-5 well which is the fourth appraisal well in the Al-Amir SE discovery area. The primary target is again the Kareem Formation, but this well is being drilled primarily to delineate a reservoir boundary which is required for technical reasons and therefore the well may not become a producer.
Circle has also confirmed an increase in daily production to approximately 7,350 Bopd following a change to production choke size on Al-Amir SE-4. A further increase in production can be expected once Geyad-2X ST1 is connected and attains stabilized production.
David Hough, CEO of Circle, said, "This successful appraisal well once connected will add to our current production levels in the Gemsa Concession and must be regarded as more excellent news for Circle Oil. The information gained on the OWC is also fundamentally important and this obviously aided in planning the optimum sidetrack location. This well has achieved higher flow rates under test than the first Geyad well and we can again be justifiably pleased with the results of our ongoing drilling program. We are delighted with the further increase in production and look forward to announcing the uplift in production once hook up and stabilized production is achieved from Geyad-2X ST1."
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