17 February 2007
MUSCAT -- Swedish oil exploration and production company Tethys Oil, which has a 40 per cent interest in Block 15 in north-central Oman, plans to conduct drilling operations in the second quarter of this year. The onshore Block, covering an area of 1,389 square kilometres, has an estimated oil in-place of more than 50 million barrels from structures already drilled. The block also has substantial exploration potential, according to Stockholm-based firm. In preparation for the commencement of drilling, Tethys Oil, as operator, says it has already obtained the necessary authorisations, including environmental permits. A drilling rig has been identified and final terms are currently being negotiated with the rig contractor. Contracting for associated services is also ongoing.
"In parallel with the drilling preparations, comprehensive geological and geophysical work has continued, including petrophysical evaluations, reprocessing and interpretation of seismic lines and studies of lithology and reservoir distribution. The result of the studies is now being incorporated with existing information. The combined data will be the basis for the upcoming work programme with a view to optimise the drilling programme further," the company said in a statement. The announcement comes less than a year after Tethys Oil formally acquired its 40 per cent stake in Block 15 through a corporate transaction involving the acquisition of all outstanding shares of previous operator GotOil Resources (Oman) Ltd from Maha Resources Ltd. The remaining 60 per cent is held by private Danish company Odin Energi A/S.
Tethys Oil expects a recovery ratio of between 5 and 20 per cent from the field's known potential. Two exploration wells, Jebel Aswad and Wadi Saylah, drilled by a previous operator Conquest Exploration, in 1994 and 1997 respectively, identified the reservoir's potential. Conquest relinquished the block in 1998 deeming the discoveries sub-commercial at that time. The block then passed into the hands of Novus Petroleum, which relinquished it in 2003 after completing some seismic reprocessing. A work programme, aimed at establishing the production capacity of the reservoir, involves the re-entry of the Jebel Aswad and Wadi Saylah structures. Horizontal sidetracks will be drilled using under-balanced drilling technology to fully evaluate the reservoir intervals already identified by flow tests and well logs.
In addition to Jebel Aswad and Wadi Saylah the block contains a dozen leads for other potential fields, and in order to gain a better understanding of these, some of the more than 2,500 kilometres of existing 2D seismic on the licence will be re-processed and re-interpreted, the company said. Tethys Oil, which specialises in the exploration and production of oil and natural gas, also has interests in exploration licences in Denmark, France, Morocco, Spain and Turkey.
MUSCAT -- Swedish oil exploration and production company Tethys Oil, which has a 40 per cent interest in Block 15 in north-central Oman, plans to conduct drilling operations in the second quarter of this year. The onshore Block, covering an area of 1,389 square kilometres, has an estimated oil in-place of more than 50 million barrels from structures already drilled. The block also has substantial exploration potential, according to Stockholm-based firm. In preparation for the commencement of drilling, Tethys Oil, as operator, says it has already obtained the necessary authorisations, including environmental permits. A drilling rig has been identified and final terms are currently being negotiated with the rig contractor. Contracting for associated services is also ongoing.
"In parallel with the drilling preparations, comprehensive geological and geophysical work has continued, including petrophysical evaluations, reprocessing and interpretation of seismic lines and studies of lithology and reservoir distribution. The result of the studies is now being incorporated with existing information. The combined data will be the basis for the upcoming work programme with a view to optimise the drilling programme further," the company said in a statement. The announcement comes less than a year after Tethys Oil formally acquired its 40 per cent stake in Block 15 through a corporate transaction involving the acquisition of all outstanding shares of previous operator GotOil Resources (Oman) Ltd from Maha Resources Ltd. The remaining 60 per cent is held by private Danish company Odin Energi A/S.
Tethys Oil expects a recovery ratio of between 5 and 20 per cent from the field's known potential. Two exploration wells, Jebel Aswad and Wadi Saylah, drilled by a previous operator Conquest Exploration, in 1994 and 1997 respectively, identified the reservoir's potential. Conquest relinquished the block in 1998 deeming the discoveries sub-commercial at that time. The block then passed into the hands of Novus Petroleum, which relinquished it in 2003 after completing some seismic reprocessing. A work programme, aimed at establishing the production capacity of the reservoir, involves the re-entry of the Jebel Aswad and Wadi Saylah structures. Horizontal sidetracks will be drilled using under-balanced drilling technology to fully evaluate the reservoir intervals already identified by flow tests and well logs.
In addition to Jebel Aswad and Wadi Saylah the block contains a dozen leads for other potential fields, and in order to gain a better understanding of these, some of the more than 2,500 kilometres of existing 2D seismic on the licence will be re-processed and re-interpreted, the company said. Tethys Oil, which specialises in the exploration and production of oil and natural gas, also has interests in exploration licences in Denmark, France, Morocco, Spain and Turkey.
By Conrad Prabhu
© Oman Daily Observer 2007
