Omax Increases Iskenderun Interest
|Friday, February 27, 2004
Omax Resources has acquired an additional 40% working interest in the 570,000 acre Iskenderun Basin project in Turkey. With a 50% interest the Company has assumed operatorship.
Omax originally earned a 10% interest in Iskenderun by participating in the Yesilteppe-1 ("YES-1") well. After completion of drilling operations YES-1 was sole risked by Omax and its partner, Krystal, and a gas discovery was announced in August 2003 with a flow of 3.2 mmcf/d with no evidence of reservoir depletion.
There has been considerable exploration in the Iskenderun Basin. Of the 24 wells drilled since the 1960's, 19 encountered significant gas and/or oil shows. There has been more than 3,700 km of 2-D seismic in the basin complex of which the Partners have re-processed 186km and acquired 71km of new seismic. While the YES-1 well flowed gas other wells in the basin have been equally encouraging. Deutche Texaco encountered a 269 metre oil column in the Gulichan-1 well in shallow water in the Iskenderun Gulf. Ten kilometres to the north of YES-1 the Gokdere structure has the most recorded hydrocarbon shows in the basin with shallow gas and oil and significant oil recoveries from Lower Miocene and Eocene carbonates. Very good gas shows were reported in the Cumular-1 well 25km NE of YES-1 at a depth of 3360m. Reprocessing of seismic, probably the most interpretable data in the basin, in Cumular area, has defined a number of fault closures up dip of Cumular-1. As mapped these leads are 10-40sq. km. and could have 20-100Bcf in-place.
Future exploration activities are planned to include re-processing of additional historic seismic and acquisition of new seismic in the Gokdere and the Cumular areas ahead of a multi-well drilling program.
The Partners are presently negotiating with the Turkish regulatory authorities for an extended extension of the drilling obligation in order to acquire additional seismic.
John Menzies, Chairman and CEO of Omax commented, "This is a very satisfying outcome after long discussions with the former Operator. The Iskenderun Basin hosts a very active hydrocarbon system and we are looking forward to an aggressive program of seismic acquisition, reprocessing and drilling in the year ahead. This development is merely a part of our overall acquisition strategy which has been the sole focus of management in the last six months."