MOL's Bijeel Well Passes Tests in Iraq
MOL has finished the testing of the first well, Bijeel-1 in Akri-Bijeel Block in the Kurdistan Region of Iraq. The cased hole test performed in the depth of 3,804 - 3,967 m from Jurassic formations produced 2,700 bbl/d 12-13 °API oil through 40/64" choke. Earlier, the Bijeel-1 well produced during an open hole test 3,200 bbl/d 18 °API oil and 933,000 scf/d (150 boe/d) gas through 48/64" choke from interval 3,646 - 3,831 m, Jurassic formations. Finally, a joint cased hole test was performed for the above two intervals (3,729 - 3,967 m) as well, with a result of 3,743 bbl/d 13° API oil and 618,826 scf/d (99 boe/d) gas through 48/64" choke.
Based on the above mentioned results, MOL's fully owned subsidiary, Kalegran Ltd. as operator of the block, has notified the Ministry of Natural Resources of the Kurdistan Regional Government of Iraq confirming the presumed existence of the discovery. The testing results have proven the validity of our geological model providing a solid basis for planning the appraisal program for this formation. The exploration of the block entered automatically into the second subperiod of the initial exploration phase in November 2010, where during the next two years, as a consequence of the results obtained from Bijeel 1 well, we implement an appraisal program and also continue the exploration of the block potential with appropriate capex investment.
MOL, via its 100% subsidiary, Kalegran Ltd., signed a Production Sharing Contract with the Kurdistan Regional Government for Akri-Bijeel exploration block in 2007. Kalegran is the operator of the block with 80% participating interest and Gulf Keystone Petroleum International Ltd. is our partner with 20% share, both are subject to dilution by a Government held Third Party Participation of 20% and a Government Interest of 20%.