Tanganyika Says Appraisal Program Underway on Hoshia Field
Tanganyika Oil Company says an appraisal program on the Company's newly discovered Hoshia field in Egypt is in progress. The first appraisal well, Hoshia 2, was drilled to a total depth of 7,100 feet. This well was drilled updip of the Hoshia 1 discovery well and is currently being completed for testing. Preparations are now underway to drill the first development well, Hoshia 3. A rig (ZJ45L) has been mobilized to the new site and is 80% rigged up. The discovery well, Hoshia 1, is on production and currently averaging 700 barrels of oil per day with 0.3% water-cut.
The Ministry of Petroleum has approved the company's development-lease application for the new Fadl discovery. Development-lease approval for West Hoshia and South Rahmi is expected over the next few months.
Gross production is currently averaging approximately 2,656 barrels of oil per day for Egypt, which includes contributions from the Hana and Hoshia fields.
The Company has a 70% working interest in the Hana field and a 45% working interest in the Hoshia field.
The Company's fourth horizontal development well at Oudeh Field in Syria spudded on July 7, 2005 and is drilling ahead at 405 metres. The well is planned to have a 600-800 metre horizontal section in the Shiranish carbonate oil reservoir. The Syrian Petroleum Company has approved the company's budget and long-range plan for Oudeh announced on June 27, 2005. Gross production at Oudeh is currently averaging approximately 1,950 to 2,150 barrels of oil per day.
The 90 day field rate test period for Tishrin will conclude in July. Once the company agrees with the initial contract oil rate for the base production, earning activities will be initiated. Production sharing for Tishrin starts after 3 well workovers.
The Company has a 100% working interest in the Oudeh, Tishrin and Sheikh Mansour fields.
Gary Guidry, President of Tanganyika Oil, commented, "Our mandate is execution excellence. We've got continuous drill programs in Syria and Egypt budgeted for and in progress. The focus is growth of cash flow per share and net asset value. We're pleased with the encouraging results from our appraisal program on our new Hoshia field in Egypt and the first development well of our new capital program for Syria is underway."
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