Gas Discovery in Yesiltepe-1 Well

Omax Resources reports that testing of the Yesiltepe-1 well in Turkey between 1157 and 1163 meters has resulted in a strong flow of condensate rich gas. The well is flowing 3.2 million cubic feet per day (mmcf/d) with an orange to red colored flare which is 5-6 meters high.

The well has flowed continuously for 8 hours during an extended flow test planned to last 12 hours followed by a shut-in period. This flow testing will determine important reservoir parameters and give an indication of reservoir size. The well flowed 2.6 mmcf/d at a pressure of 748 psi for four hours through a 24/64 inch choke and 3.2 mmcf/d at a pressure of 635 psi for four hours through a 28/64 inch choke. Flow testing continues.

There has been only inconsequential water produced and the well continues to clean up - expelling drilling fluids. Pressure during each 4 hour test period has been stable. Omax interpret this gas to be coming from a near vertical fracture set which may have considerable vertical and lateral extent and we expect that this well will continue to clean up as heavy drilling mud is expelled from the formation. It is likely that considerable formation damage and occlusion of fracture porosity has occurred limiting flow. After conducting an independent detailed review of the geologic, mud, wireline and gas logs in the Yesiltepe-1 well Omax and partner The Krystal Group advised the operator that they wished to test the interval on a sole risk basis.

As a result of Omax and Krystal assuming responsibility for the Yesiltepe-1 well, Amity will no longer be a participant in this well or the development of any related discovery unless it repays the other partners 1100% of its share of the costs incurred after it declined to participate. If Amity does not make this payment, Omax will have a 50% interest in the Yesiltepe-1 well and any subsequent development operations.

John Menzies, Chairman and CEO of Omax commented "this is an excellent result which requires further testing to fully understand the potential of this reservoir, however fractured reservoirs can be significant and prolific gas producers. Omax and Krystal will now develop an appraisal program which will probably see the well placed on a long term production test with gas and condensate being sold to local consumers"