Amity Sees Good Results from Cayirdere-1 Well in Turkey

TPAO has reported that pressure build-up and flow tests were carried out on the completed Cayirdere-1 well between May 2nd and May 3rd.. Seven flow tests were run using small choke sizes ranging from 1/8" diameter to 3/8" diameter. A stabilized flow rate of 3.1 million cubic feet of gas per day was recorded through a 3/8" choke, at a surface flowing pressure of 761 psi, from a 9 meter perforated zone between 649 meters and 658 meters at the top of the Osmancik Formation. Initial and final surface shut-in pressures were both 845psi. The well has been shut in and suspended as a production well. From the data reported, Amity calculates that the well has a theoretical Absolute Open-hole Flow potential (AOF) of 12.1 million cubic feet per day. The well has flowed gas at commercial rates with a small choke and is capable of higher flow rates with larger chokes. The estimated threshold initial flow rate for commercial gas production in the Thrace Basin, is less than 0.7 million cubic feet per day.

The Joint Venture will consider appraisal drilling and development options after all well data has been evaluated and the seismic has been remapped using information obtained from the well. Pre-drilling estimates indicated that Cayirdere was likely to be about 10-15 Bcf, but this may increase or decrease after the data evaluation. The shallow depth (649 meters) and good quality of the reservoir are very positive commercial aspects of the discovery. Cayirdere is within 10 kilometers of an operator-owned gas pipeline and within 6 kilometers of an industrial center.

Cayirdere is the Joint Venture's second commercial gas discovery in the Thrace Basin and highlights the potential for further discoveries along the Gocerler trend. Cayidere is more than 33 kilometers east of the Gocerler Gasfield.

Cayirdere is the Joint Venture's first gas discovery in the Osmancik Formation, which is stratigraphically beneath the producing reservoirs in the Gocerler Gasfield. Cayirdere proves the potential for discoveries in that formation throughout the Gocerler trend. The Cayirdere structure was selected for drilling because it had a co-incident seismic amplitude anomaly ("bright spot"), which the well result has now proved to be due to gas in the Osmancik Formation. There are a number of similar coincident structure-amplitude anomalies yet to be drilled, both in the Joint Venture area and in Amity's 100% owned exploration licenses. The first of these to be drilled will be the Adatepe structure, 6 kilometers southeast of the Gocerler Gasfield. The Amity operated Adatepe-1 Well is expected to spud this week. The Cayirdere-1 well is located in Area B of the Thrace Joint Venture, which is owned 50% by Amity and 50% by TPAO. Area B is operated by TPAO.