To date, two wells have been drilled and have tested light sweet crude oil at high rates, a third is testing and a fourth has reached total depth and is logging. The Company has submitted a preliminary appraisal report to the Libyan National Oil Corporation ("NOC") on its first light sweet crude oil discovery A1-47/02 as required under the Exploration and Production Sharing Agreement ("EPSA") for Area 47.
The report incorporates results from the drilling, formation evaluation and flow testing programs and makes recommendations on additional seismic reprocessing and interpretation, reservoir analysis and additional appraisal drilling in areas adjacent to the A1-47/02 structure to determine the size of the discovery and potential recoverable resources.
As announced on April 25, 2007, the A1-47/02 well was flow tested at a maximum combined rate of 12,500 barrels of oil per day (gross) at choke sizes up to 128/64ths inch and 6,586 barrels of oil per day at a restricted choke size of 32/64ths inch, from 174 feet of perforations in three test intervals in the Lower Acacus Formation. These flow tests confirmed the excellent quality and deliverability of the sandstone reservoirs discovered in the Lower Acacus in this well and provided information to calibrate wireline log and other formation evaluation results.
This combined flow test rate is not necessarily indicative of ultimate production rate in any commercial development which will be determined from reservoir management studies that constitute part of the proposed appraisal program.
The Company has successfully completed flow tests from 312 feet of perforations in five reservoir intervals in the Lower Acacus and Middle Acacus Formations in its second exploration well B1-47/02.
The combined measured flow rate of light sweet crude oil exceeds the rate achieved in the Company's first exploration well A1-47/02 due primarily to the greater perforated pay in the B1-47/02 well.
The Company plans to release details of the flow test results on the B1-47/02 well subject to the approval of the NOC which is currently reviewing the well test results.
The KCA DEUTAG Service Rig 32 was released from the B1-47/02 well on June 5, 2007 and mobilized to the C1-47/02 well to carry out similar flow testing.
ScandoiL
NOC
Verenex
Libya
France
