Thursday, Nov 05, 2009

 

   (Adds analyst comment, gas flow rate) 

 

   By Ross Kelly 

   Of DOW JONES NEWSWIRES 

 

SYDNEY (Dow Jones)--Oil Search Ltd. (OSH.AU) said Thursday that a well in Yemen located in a block it operates and in which it has a 60% stake has struck hydrocarbons, marking the company's first operated discovery outside Papua New Guinea.

Oil Search said the Tubb'a-1 well in Block 3, Yemen produced gas and condensate at daily rates of up to 9 million cubic feet and 450 barrels on a half-inch choke.

"Further work is underway to define the producing intervals and any fluid contacts," Oil Search said in a statement.

Other partners in the block are Turkey's Petoil and Yemen General Corp. for Oil and Gas, with stakes of 34% and 6%, respectively.

BBY energy analyst Scott Ashton described the find as "good news" with the initial production results "not too shabby at all".

He said the discovery could have a small positive effect on Australian Worldwide Exploration Ltd.'s (AWE.AU) acreage at Block 7 to the North, which contains several untested structures. AWE has a 19.25% interest in Block 7 and Oil Search is operator with a 34% stake.

-By Ross Kelly, Dow Jones Newswires; 61-2-8235-2957; ross.kelly@dowjones.com

(END) Dow Jones Newswires

05-11-09 0604GMT