Gulfsands/Emerald Energy Enter First Extension Of Exploration In Block 26
Gulfsands Petroleum (operator with 50% equity) and its 50% partner Emerald Energy have given formal notice to the Syrian Petroleum Company (SPC) that they will commence on 23 August the first extension period of exploration in the 11,000 sq km Block 26 under their production-sharing contract (PSC) with SPC, having successfully fulfilled the minimum work obligations required in the initial exploration period which will end on that date. In a statement on 16 July, Gulfsands said the first extension was for three years during which the two partners would undertake further exploration work under the terms of the PSC, which must include, as a minimum, the acquisition of 250 sq km of 3D seismic and the drilling of two exploration wells. Also the first extension period will follow the relinquishment of an area equal to 25% of the original acreage. According to Gulfsands, the relinquishment of the 25% portion will have no impact on the future exploration program for Block 26.
Commenting on the transition to the next phase, Gulfsands CEO John Dorrier said “completion of the substantial seismic work and four well drilling campaign undertaken over the past two years is a tremendous achievement for a company of any size. The fact that we have already made a significant oil and gas discovery at Khurbet East adds to the significance of our move today to extend our PSC in Syria, which will allow us to enter an exciting new phase during which we will acquire important 3D seismic data and drill additional wells both at Khurbet East and elsewhere as we look to build on our successes to date in exploring Block 26.” Last month Gulfsands announced the discovery of four hydrocarbon-bearing reservoirs at Khurbet East 1 with an oil flow on the deepest reservoir, which tested at 478 b/d and a gas-to-oil ratio of 2,000 cu ft/barrel (MEES, 11 June).
