FCP Reports Production Results from Block 405b in Algeria
First Calgary Petroleums reports production test results from its gas and condensate discovery well MLE-2, located on its 100% working interest Ledjmet Block (405b) in Algeria. Production liner was set to total depth of 4,390 meters in the well and multi-rate production tests were conducted over six intervals confirming the previously announced 147 meters (480 feet) of net pay in the Triassic TAGI, Carboniferous, and Upper and Lower Devonian zones.
The well production tested cumulatively 44,330 barrels of oil equivalent per day (boe/d), comprising 189 million cubic feet of gas per day (mmcf/d) and 12,874 barrels of condensate per day (bc/d), at 2,000 psi flowing tubing head pressure (FTHP). The table below summarizes all results on a zone by zone basis. MLE-2 is an appraisal well to First Calgary's gas and condensate discovery well, MLE-1, which production tested 8,911 boe/d comprised of 43 mmcf/d and 1,745 bc/d. Combined production tests for the two wells total 53,241 boe/d, comprising 232 mmcf/d and 14,619 bc/d.
Richard Anderson, President and CEO of First Calgary's stated, "This discovery is a milestone in the growth of FCP. The results from MLE-2, combined with those from MLE-1 confirm the MLE pool to be commercial in size." Martin Layzell, FCP's Vice President, Exploration added, "We are all very excited with the results from MLE-2, it has exceeded our expectations and is clearly a world class hydrocarbon discovery. MLE-2 is, if not the most, then one of the most prolific discoveries in the region. The two wells confirm the 3D seismic interpretation of the MLE structure, indicating the field to be approximately 100 sq km in area. Based on this success we are moving quickly to firm up further locations for the MLE pool and are planning to drill the next appraisal well in May."
First Calgary's independent engineers, DeGolyer & MacNaughton, are in the process of completing a revised reserves report based on the MLE-2 information plus the 3D seismic covering the structure. First Calgary has commenced preliminary engineering work to assess optimal field development and timing of first production.
Algeria is a major natural gas exporter, accounting for 34% of the European imported natural gas market. Infrastructure to move gas to Europe is in place with two pipelines under the Mediterranean and two additional pipelines planned. Algeria ranks in the top ten countries worldwide for natural gas resources.
First Calgary's Ledjmet Block 405b covers 1108 sq km (255,000 acres). The company expects to award a seismic contract within the next two weeks to acquire an additional 600 sq km of 3D seismic to evaluate two additional structural trends west of the MLE structure. Block 405b lies within the prolific "Berkine Trend" where more than 5 billion barrels of oil and substantial gas reserves have been established in the last 12 years.