Amity Makes Gas Discovery with Adatepe-1 Well

Amity Oil reports that the preliminary interpretation of wireline logs indicate that the Adatepe-1 well is a commercial gas discovery. The well has intersected 5 gas zones totaling 51.3 meters of gross pay (28.8 meters net), spread over a vertical section of 269 meter in separate sandstones in the Danismen Formation. The thickest single gas zone has 33.7 meters of gross gas pay (17 meters net), between 1,173.3 meters and 1,207 meters, in reservoir sandstones of comparable quality to those in the Gocerler Gas Field. The other four gas zones have a combined gross pay thickness of 17.6 meters, of which 11.8 meters is net.

This is a very pleasing result and has confirmed the predictive value of the Joint Venture's high resolution 3D seismic survey, which accurately portrayed the major gas zones as "bright spots" (DHI's) in the Adatepe prospect. The 3D has defined many further prospects with DHI's which remain to be drilled.

The well will now be cased so that drilling can proceed safely to investigate the deeper Osmancik Formation target at about 1,490 meters.

After completion of the wire-line Repeat Formation Tester survey, a seismic velocity survey is scheduled to accurately measure formation interval-velocities, in order to enhance future seismic interpretation. 9.265 inch intermediate casing will then be run in two stages to minimize reservoir damage. Over the next seven days (trouble free), drilling is planned to proceed to the Osmancik Formation gas target at about 1490 meters, then to proposed TD at about 1700 meters.

The Adatepe-1 well is located approximately 6 kilometers southeast of the Gocerler Gas Field and about 140 kilometers west of Istanbul, in the Thrace Basin, Republic of Turkey. Adatepe-1 is positioned to test a partly fault closed anticlinal structure, well defined by 3D seismic. The seismic exhibits prominent amplitude anomalies ("bright spots") coincident with structural closure. Such bright spots can be direct indications of gas. Similar bright spots occur in the seismic data over the Gocerler Gas Field and the recent Cayirdere gas discovery. Based on the seismic mapping and assuming reservoir properties similar to those in the Gocerler Field, Amity has estimated unrisked potential recoverable natural gas reserves in the most likely case (P50), at 93 billion cubic feet, if gas is present. This estimate includes both the Danismen and Osmancik Formation primary targets. Primary gas targets were predicted from about 1100 meters in Danismen Formation sandstones. Secondary gas targets are predicted in Osmancik Formation sandstone between 1490 meters and 1650 meters. The seismic also indicates several potential secondary gas targets between 842 meters and 1100 meters. Proposed total depth (TD) is 1700 meters, anticipated to be reached in 7 days (trouble-free) from today.

The Adatepe-1 well is located in Thrace Joint Venture Area A, and is operated by Amity Oil International Pty Ltd, a subsidiary of Amity Oil Limited. Amity and Turkiye Petrolleri AO (TPAO) hold equal equity in the JV.