Amity Oil Takes Partner in Iskenderun Basin Project

Amity Oil has signed a farm-in agreement with Omax whereby Omax will acquire a 10% working interest in the 570,000-acre Iskenderun Basin project in Turkey. Drilling on the first well in this project, Yesiltepe-1, began in late May. The well has been suspended while awaiting delivery of key mudlogging equipment.

This well will test a major onshore structural prospect near the Turkish Mediterranean coast, close to substantial gas markets and crude oil handling facilities. The Yesiltepe prospect is a high relief anticline in Miocene age sediments, similar to those at Amity's Gocerler Gasfield. The structure has been defined by 2D seismic shot by Amity early this year and reprocessed old seismic. Eight nearby, but off-structure old wells, have tested oil and gas, or had strong shows during drilling, from stacked sandstone reservoirs in the same rock sequence which will be drilled in Yesiltepe-1. The target stacked sandstone reservoir rocks are expected to be intersected from about 250 meters to total depth of 2000 meters. The Yesiltepe anticline is a major structure and Amity estimates that it has a "most likely case" (50% probability) recoverable reserve potential of 270 billion cubic feet of gas, or 140 million barrels of oil, if hydrocarbons are present. The "maximum case" (10% probability) is 1,028 billion cubic feet of gas or 536 million barrels of oil, if hydrocarbons are present.

The Yesiltepe-1 well is located approximately 73 kilometers east of the city of Adana and 32 kilometers northwest of Dortoyl, a major crude oil handling center.

Amity intends to drill the Yuksekkoy-1 wildcat exploration well immediately after the Yesiltepe-1 well. This will be Amity’s sixth well in Turkey in 2003. Subject to rig release date on Yesiltepe-1, Yuksekkoy-1 is anticipated to start drilling operations in mid July. Yuksekkoy-1 is located 95 kilometers west of Yesiltepe-1. The well is positioned to test at relatively shallow depth, a prominent domal structure, well defined by good quality 2D seismic, shot by Amity early this year. The dome is developed in Upper Miocene age sediments on the western on-shore flank of the Adana Basin, a major Upper Tertiary age sedimentary basin, straddling the Turkish Mediterranean coast. The Adana Basin is sparsely explored and has one producing oil field, located some 32 kilometers to the north of Yuksekkoy-1 and an undeveloped gas field, 21 kilometers to the east.