Tanganyika Oil to Begin First Horizontal Well at Oudeh Field

Tanganyika Oil reports that preparations are being made to commence drilling the Company's first horizontal well in the Shiranish Reservoir of the Oudeh Field in Syria. The Oudeh Field is a large development block located in northeastern Syria containing an estimated 2.4 billion barrels oil in place (Sproule, June 2003).

A contract for the drilling of the first two wells has been signed with ADWOC (Arab Drilling and Workover Company) and location preparation has commenced on a multiple well drilling pad, which will have the capacity to accommodate the drilling of six wells thereby minimizing the cost of rig moves. Initial plans are to drill two wells into the top section of the Shiranish reservoir.

These two wells will initially be tied into the existing flowline from Oudeh#1H to the nearby central production facility.

Work has commenced on the design of a satellite production facility that will be situated adjacent to the drilling pad and that will enable production from the six new wells, the existing horizontal Shiranish producer OD#1H and the K-Dolomite producer OD#129 to be commingled. The satellite production facility will allow for the testing of individual wells, the heating of the oil to allow ease of pumping to the central processing facility in the winter and for the addition of the lighter K-Dolomite oil into the heavier Shiranish production stream, which will enhance its flow capability. This is an upgrade of the pilot concept currently being successfully trialed on the Shiranish producer OD#107 and it is envisaged that the future development of the Oudeh field will be based on the drilling pad and satellite production facilities concept.

Work has also commenced on the installation of two, fully instrumented, 500 cubic meter fiscal oil storage tanks, at the central production facility. Installation of these two tanks will enable Tanganyika to more accurately meter its exports into the SPC export system. These tanks, which are being built under an incentivised construction contract, are expected to be in service within fifty days.