Following additional specialized processing on the Hammamet 3D seismic dataset, further examination of the petrophysical log data and a detailed review of the Hammamet West-2 production well tests, the base case Hammamet West Oil Field Contingent Resources estimate for the Abiod Formation reservoir has grown from 57 to 101 million barrels of oil (P50 proved oil-down-to scenario, 100% Joint Venture).
Should the Abiod Formation reservoir oil water contact extend below proved oil to the interpreted spill-point of the structure, and then the Contingent Resources could be as large as 213 million barrels of oil (P50 spill-point scenario, 100% Joint Venture).
Approximately 10 million barrels of recoverable oil is associated with the Birsa Sandstone Formation, which would be additional to the volumes reported in this announcement.
The Bargou Joint Venture (Cooper Energy) 85% and Operator, Jacka Resources (JKA 15%) are currently designing a horizontal well to test the production capacity of the Abiod Formation.
At this time a well is planned for 3Q2011, subject to material availability, rig schedules and one or more additional Joint Venture Participants being attracted into the permit.
The conceptual development plan evaluations demonstrate that at an oil price of US$75/barrel flat the project economics for the base case P50 case are approximately US$500 million (NPV10, 100% Joint Venture). Breakeven volumes are in the 12-15 million barrel range.
Cooper Energy has engaged Senergy (a global energy consultancy with expertise in reserves certification) to independently review and assess the volumes. The independent expert’s report should be available around the end of March.
Michael Scott, Managing Director, noted “Hammamet West has become Tunisia’s sleeping giant and we are looking forward to proving the productivity of the Abiod Formation by drilling a horizontal well, which is today considered conventional technology. If the well test is successful, the Hammamet West Oil Field asset would provide a serious uplift in our value.”