Sonatrach Gives First Calgary More Time to Appraise Discoveries
First Calgary Petroleums Ltd. (FCP) said that Sonatrach, Algeria's national oil company, has agreed to extend the Block 405b Exploration Period for 24 months commencing December 30, 2006, as provided for in the Production Sharing Contract, in order to complete the appraisal of the LES, MZLN, MZLS, LEC, LEW and GSM discoveries in the central area of the Block and to submit commerciality reports thereon.
Richard Anderson, President and CEO, commented:
"By year end, FCP will have drilled 17 wells situated west of the MLE field. Of this total, 15 wells are located within the central area as delineated by the LES, MZLN, MZLS, LEC, LEW and GSM discoveries. This area has been termed the Central Area Field Complex or "CAFC", where the drilling program has defined geological structures that have multiple oil, gas-condensate and gas pool discoveries. To date in the CAFC, the cumulative production tests from 11 wells approximate 162,000 barrels of oil equivalent per day (normalized to a 2000 psia flowing pressure). FCP and Sonatrach have jointly agreed to an appraisal work program that will see a minimum of 7 additional CAFC wells drilled during the extension period after which FCP will make application for commercialization."
"We look forward to working with Sonatrach during the extended Exploration Period as we appraise the existing discoveries and move them towards development and production."
First Calgary Petroleums Ltd. is an oil and gas exploration company actively engaged in international exploration and development activities in Algeria.
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Company: First Calgary Petroleums Ltd. more info
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