MUSCAT -- Circle Oil, an international oil & gas exploration, development and production company, says it plans to drill an exploration well in its Block 49 concession onshore Oman in the second half of this year.
The company, at the same time, is pressing ahead with a farm-out process aimed at securing a partner ahead of the drilling of a similar exploration well in its Block 52 concession offshore Oman. Both initiatives are part of a wider effort to "grow the value of the company" across its operations spanning the Middle East and Africa, it said in a report.
Circle Oil, through its wholly owned subsidiaries, has signed Exploration and Production Sharing Agreements (EPSA) with Oman's Ministry of Oil and Gas for two blocks. Circle Oil Oman Ltd (COOL) is the operator of Block 49 with a 100 per cent working interest. Likewise, Circle Oil Oman Offshore Ltd (COOOL) is the operator of Block 52 with a similar 100 per cent working interest. Since the signing of the pacts in 2005, the subsidiaries have undertaken seismic surveys, data processing and interpretation activities aimed at evaluating the hydrocarbon potential of the blocks. These efforts continued during 2013 and the first half of 2014 with Circle Oil now outlining a broad strategy to progress its exploration campaign targeting its Oman licenses.
"On Block 49 we will be drilling an exploration well to be completed in H2 of 2014. We are also awaiting the outcome of our bid to gain a new exploration block in the 2013 Oman Bid Round," said Stephen Jenkins, Chairman, Circle Oil plc.
"We have acquired additional 2D seismic over the inshore portion of Sawqirah Bay in Block 52 and we are continuing our efforts to obtain a partner to join in the drilling of a well on this permit in 2015," he added in a review of the company's performance across its portfolio.
Block 49, located in the Rub Al Khali Basin, covers an area of 15,439 sq km. Studies have identified three main plays, comprising the Sahmah play which is productive to the in Saudi Arabia, the Natih and Shuaiba plays in northern Oman, and the Lower Haima play in southern Oman. In addition, there is evidence of a salt basin analogous to the prodigious South Oman Salt Basin. This new salt basin, called the Ghudun Salt Basin in the western part of the block, has been the subject of exploration studies designed to delineate likely targets for drilling, says Circle Oil.
Block 52, which originally occupied an area of 90,760 sq km but has been reduced by around a third following a part relinquishment in 2008, covers water depths ranging from 200-3,500m. Three potential shallow water targets identified along with a significant undrilled basin in 800-plus metres of water. A farm out package has been compiled to accompany invitations to farm-in to the block prior to exploration drilling, the company said.
Circle Oil is one of around 17 international and local companies that are currently engaged in the exploration and production of oil and gas in the Sultanate. Circle Oil's expanding portfolio now includes assets in Morocco, Tunisia and Egypt, besides Oman.
(OEPPA Business Development Dept)
© Oman Daily Observer 2014