EPRI Evaluates EWA-2X Well for Dover Petroleum

Dover Petroleum has revealed the results of a study undertaken by the Egyptian Petroleum Research Institute (EPRI), an independent technical lab, indicating that migrated crude oils are present in EWA-2X. A total of 6 ditch samples taken from the EWA-2X well were evaluated for detection of crude oil using Total Organic Carbon (TOC by Weight %), Bitumen Extraction and Rock Eval Pyrolysis. The results of this testing revealed that dolomites in EWA-2X, at depth intervals of 1810-1920 ft, 2890-2900ft and 3030-3040ft, could be considered as reservoir rock containing migrated oils.

Subsequent Gas Chromatography tests were performed on the 6 bitumen extracts from the samples to investigate the characteristics of the oil. The detailed composition of the oils were determined and these results were correlated by EPRI with oils from different localities to predict the API (American Petroleum Institute) gravity of the EWA oils with the following results:

  • Sample No. 1, depth of 1700-1710ft contained migrated light oils with an API gravity range of 35-38 degrees.
  • Samples No. 2 depth 1740-1750ft and sample No. 3, depth 1770-1780ft contained migrated hydrocarbons but heavier than sample No. 1, with API's of 25-29 degrees.
  • Sample No. 4, depth 1810-1820ft., contained migrated heavy oil with a small contribution of generation hydrocarbons, API 17-19 degrees.
  • Samples No. 5 and No. 6, depth intervals 2890-2900ft and 3030-3040ft, respectively contained migrated heavy oil with high contribution of hydrocarbons generated in situ with API's of 22-25 degrees and 20-22 degrees, respectively.

  • The API gravity predictions indicate a strong potential for the crude oils to be moveable, with all API ranges indicating the presence of commercial grade crude oils at all depths tested. To illustrate the possible practical significance of these findings, at current prices crude oil with an API of 35 sells for approximately $24 per barrel. Crude with an API of 18, will sell for about 20% less.

    Based on the independent Schlumberger report, Dover Petroleum believes that crude oil in amounts on the order of 220 million barrels or greater may be discoverable in EWA-2X.

    Moveability of the oil now appears likely to be primarily dependant upon the nature of the porosity and permeability of the formation. A previously announced independent report by Schlumberger Limited, a leading oil services firm, revealed substantial fracturing in the Thebes Formation (2,810-3,200 ft) which could provide the porosity and permeability needed for moveability. However, only drill stem testing will confirm if the hydrocarbons will be mobile and flow thereby indicating the potential to have a commercial discovery.

    Dover Petroleum is continuing to seek written confirmation from the Egyptian General Petroleum Corporation (EGPC) for a drill date with the first available oil rig to conduct drill stem testing. Presently, there are three rigs with potentially available dates in the late fall or early winter.

    No certain assurances can be provided that EWA-2X contains any moveable crude oil, or if such crude oil exists, that it can be recovered in a commercially viable manner. The cost of conducting such drill stem testing in EWA-2X is estimated to be approximately $2 million, and no assurance can be provided that such capital will be available to Dover Petroleum. In addition, if such crude oil exists, Dover Petroleum will require substantial additional capital in order to bring such oil into production, and no assurance can be provided that such capital will be available to Dover Petroleum.

    Dover Petroleum Corp.'s wholly owned subsidiary, Dover Petroleum Egypt I Inc., has a 56.25% interest in Dover Egypt I Joint Venture, which is a party to an Option Agreement entitling that joint venture to acquire 100% of the Operator's interest in the East Wadi Araba Concession Agreement.