IPR Scores Hat Trick Onshore Syria at Block XXIV

IPR Mediterranean Exploration Limited (IPRMEL), operator of Block XXIV in Syria and partner with ONGC Videsh Ltd. (OVL) of India, announces the discovery of three back to back to back oil and gas discoveries.

The first of the three discoveries, Rashid-1, is located about 40 km to the north-northwest of Deir El-Zor northeastern Syria. The well flowed naturally at a rate of 1,300 BOPD and 11 McfG/D on 40/64 in. choke from the Cretaceous Judea formation. Oil gravity is 26 degrees API. The well was drilled on a prominent west-northwest trending three-way closure against a west-northwest trending normal fault thrown down to the south.

The second field discovery, Abu Khashab-1 (AK-1), penetrated and tested the shallower Jeribe formation at a rate of 1,000 BOPD on a 44/64 in. choke. The total depth of this well was 990 m. API gravity of oil is 34 degrees.

The third discovery well, Abu Khashab-2 (AK-2) was a multiple formation discovery of both oil and gas. AK-2 confirmed that four reservoirs are oil bearing, namely, Chilou of Oligocene Age; Lower and Upper Dibbane of Early Miocene; and Jeribe of Early and Middle Miocene. Ten meters of the Chilou formation, between 1,084 and 1,101, were perforated and tested during the first DST. After acidizing, the well flowed from this zone at a rate of 2,100 BOPD on a 44/64 in. choke. API gravity is 35 to 37 degrees.

The Dibbane formation was perforated, acidized and tested in two intervals, the Lower Dibbane from 1,057 to 1,065 m and the Upper Dibbane from 1,019 to 1,032 m. The Lower Dibbane produced at a rate of 210 BOPD and 6.1 MMcfG/D on a 1 in. choke, while the Upper Dibbane produced at a rate of 1,750 BOPD on a 48/64 in. choke.

The shallowest formation, Jeribe, was also perforated, acidized and tested between 963 to 970 m. It produced at a rate of 5,000 BOPD on a 1 in. choke. All formations in AK-2 had negligible watercut and combined to produce nearly 10,000 BOPD from the four tested zones. The average reservoir depth is 1,000 m.

The Abu Khashab structure is one of many northeast-southwest trending prospects with fault-related closures in this area of Block XXIV. Source rocks are believed to be the Silurian hot shales of Sinjar Basin in the northeast. The shallow reservoirs of Abu Khashab are fed laterally by long distance migration from the subject basin. Deeper structural leads in the area are being advanced to prospect levels.

IPRMEL and OVL have declared commercial discoveries in both fields and have applied for Development Area (DA) licenses with the Syrian Petroleum Authorities. First production from the fields is expected in 2Q10. A very aggressive exploration, exploitation, and development program is underway for 2010-2011.