Gulfsands Gets Go-Ahead to Develop Syrian Oil Field

Gulfsands has been granted permission to develop the Yousefieh oil field accumulation in Block 26, North East Syria. A production license of 25 years duration has been granted, with the possibility of an extension if required, for a further 10 years.

Discovery of oil at Yousefieh-1, located approximately 3 kilometers east of the Khurbet East Field, was made in November 2008, with two subsequent appraisal wells being drilled in 2009.

The Yousefieh field was assessed at the end of 2008 as containing gross proved plus probable reserves of 11 million barrels of oil. A further update on Yousefieh field estimated gross reserves will be provided at the beginning of the second quarter 2010.

First oil from Yousefieh is anticipated early in April 2010. Production will commence from 2 wells, Yousefieh-1 and Yousefieh-3, at an expected initial combined rate of up to 1000 barrels of oil per day.

Production from the wells will be closely monitored to assess flow performance and to determine whether the Yousefieh reservoir benefits from the same strong aquifer pressure support as is observed in the nearby Khurbet East field. The current expectation is that the Yousefieh field has lower reservoir energy than Khurbet East and planning is underway to install permanent down-hole artificial lift equipment in both Yousefieh wells later in the year. In addition, a further development well on Yousefieh is planned for 2010.

It is anticipated that production from the Yousefieh Field will reach a rate of approximately 6000 barrels of oil per day by 2012.