DualEx Commenced Its Portugal Exploration Program
DualEx Energy International has commenced its exploration program in the western onshore region of central Portugal, initially consisting of two 3D seismic surveys, the deepening of two wells and the drilling of a third well.
The deepening of the two wells, Lapaducos-2 and Aljubarrota-4, is scheduled to commence this fall with the operator having now executed a contract with a UK based drilling company. The contracted rig is in the final stages of construction and scheduled for arrival in Portugal in late September, and is expected to re-initiate drilling operations on the Lapaducos-2 well in October. This operation involves deepening the well to 1500 m in order to evaluate Upper Jurassic fractured Montejunto carbonate and Middle Jurassic Candieiros limestone targets, updip from light, high quality oil tested in the Benfeito-1 well. The rig will then be mobilized to the Aljubarrota-4 location, which will be deepened by 400 m into the lower portion of the fractured Brenha Carbonate zone and underlying Brenha carbonate grainstone zone. The third well in the program, Carascal (a Triassic subsalt test), will be drilled subsequent to the below referenced Aljubarrota 3D survey.
A geophysical company has been contracted to undertake the two 3D seismic programs. Surveying and permitting has commenced on the first program, located within the Torres Vedras Concession, with field acquisition anticipated to commence in late September. This 117 sq km 3D survey will be recorded to follow up on a well drilled by DualEx's predecessor on a Jurassic reef prospect utilizing older 2D seismic. That well missed the reef although indications from the well data suggest proximity to a reef buildup. Several additional reef prospects (mapped with the older 2D data) will also be imaged by this survey. The second 3D survey (130 sq km) will be located within the Aljubarrota Concession, and will be used to pick the Carascal well location, anticipated to be drilled in Q1 2008.
Garry Hides, DualEx's CEO, commented: "We're very pleased to announce the start-up of the project in Portugal, in particular the drilling program, which will expose the Company to an unrisked resource potential of up to 2.5 tcf of gas and 40 million barrels of oil, in addition to the follow up potential in the Torres Vedras reef play."
DualEx has a 10% working interest in the Torres Vedras and Aljubarrota Concessions, which have now been re-issued as "Torres Vedras-3" and "Aljubarrota-3", and contain 321,000 acres and 311,000 acres respectively. These new concessions have an eight year initial term, and essentially the same work commitments as the previous concessions, however a revised state take with respect to natural gas and condensate was incorporated, namely a sliding scale carried interest, post payout of all capital investment and operating costs, of between 2 and 7%, depending on cumulative field production. In the previous concession agreements, there were no state burdens on natural gas or condensate.
DualEx Energy International Inc. is an oil and gas exploration company with operations in the greater Mediterranean area. DualEx's common shares trade on the TSX Venture Exchange under the symbol "DXE".
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