Loon Participates in Tunisian Well
Loon Energy plans to participate in the drilling of the Bhayra Rigo 1 well on the Jorf Exploration Block in south-central Tunisia. Loon will pay 15% of the costs of 166 kilometers of new 2D seismic data shot earlier this year and 15% of the well costs and will earn a 10% interest in a portion of the Jorf Exploration Block operated by Rigo Oil Company (Tunisia), a wholly-owned subsidiary of Cygam Energy Inc. (TSX-V). Loon will have an option to participate under the same terms in an option well to earn a similar interest in any portion of the Jorf block retained under license which was not earned by the drilling of the Bhayra Rigo 1 well. The national oil company, Entreprise Tunisienne d'Activites Petrolieres ("ETAP"), has the right to back-in for 50% of a new discovery. In the event that ETAP elects to participate, it is carried through the initial exploration and appraisal phase and will repay its share of costs through its share of production.
Jock Graham, Executive Vice President, commented that "this deal exposes Loon to a very large seismically defined anomaly with potential for significant reserves and, if successful, targets for additional exploration."
The well, with a planned depth of 2,500 metres, was spud on July 30th. Estimated drilling time is 30 to 45 days. Two major anomalies, interpreted as potential reef buildups, were outlined through the interpretation of approximately 2,000 kilometres of older vintage seismic data and the location for the Bhayra Rigo 1 well was selected after the interpretation of the 166 kilometres of new 2D data acquired earlier this year. The primary target is light oil in reefal carbonates of Permian age contained within a large feature defined by the seismic. Total estimated cost net to Loon for the drilling of the well and the shooting and interpretation of the seismic is approximately $US 1.1 million.
The Jorf permit, located onshore south-central Tunisia, encompasses an area of approximately 1 million acres. Major oil and gas pipelines from the giant El borma oil and gas field and other southern Tunisian fields traverse the Jorf permit within 40 kilometres of the Bhayra Rigo 1 well and connect to an oil terminal on the Mediterranean coast of Tunisia.
Loon is an international oil and gas exploration and production company having direct interests in Brunei, Syria, Colombia, Peru, Tunisia and Slovenia and an indirect interest in Pakistan through its shareholding in Jura Energy Corporation. Loon has offices in Calgary, Alberta, Canada, Dubai, United Arab Emirates and Bandar Seri Begawan, Brunei Darussalam.