Muscat - Masirah Oil Ltd, operator and concession holder of Oman's oil Block 50, has announced the discovery of hydrocarbons in a second exploration well located in the offshore block.
Rex International Holding Ltd, a company listed on the Singapore Exchange, on Tuesday said that Masirah Oil, which is a 64-per-cent indirectly owned subsidiary of its jointly-controlled entity Lime Petroleum Plc, announced it had reached more than 3,000m into the Cambrian formation in terms of well target depth in the second exploration well in Block 50.
"Hydrocarbons were discovered in several formations, with good oil samples extracted. The well will undergo data acquisition before setting the completion for testing. The well was drilled using the independent leg cantilever jack-up drilling rig Aban VII," Rex International said in its filing to the Singapore bourse, referring a press release issued by Masirah Oil.
Masirah Oil had started drilling its second exploration well in the Block 50 concession in January, after it suspended operations at its first exploration well in the block for further evaluation due to safety reasons.
Hans Lidgren, chairman of Masirah Oil, said, "The discovery of hydrocarbons in the second exploration well is a significant step towards the deepening of our knowledge and understanding of the offshore geology in the east of Oman, where no discovery has been made before."
Lidgren added, "The results from this well are vital for the future development of this block. This discovery confirms the high quality and value of the Oman asset. We look forward to a continued fruitful co-operation with the Ministry of Oil and Gas in Oman for many more years to come."
Dan Broström, executive chairman of Rex International, said, "The oil discovery in the second exploration well is further testament to the accuracy of our proprietary direct hydrocarbon indicator, Rex Virtual Drilling; this time in our very own concession. The recent entry of oil majors, such as France's Total, in Oman's offshore areas indicates their recognition of the potential for finding crude reserves in the region, and gives a vote of confidence to the findings of Rex Virtual Drilling."
Rex International holds an indirect 65 per cent stake in Lime Petroleum, while Malaysia's Hibiscus Petroleum Berhad indirectly holds the remaining 35 per cent stake. Lime Petroleum holds a 64 per cent stake in Masirah Oil, while Petroci, the national oil company of the Ivory Coast, has a 36 per cent participating interest in Masirah Oil. Masirah Oil holds 100 per cent of the Block 50 concession.
© Muscat Daily 2014
