Gulfsands Provides Operations Update in Morocco

Source: www.gulfoilandgas.com 1/10/2014, Location: Africa

Gulfsands Petroleum plc, the oil and gas production, exploration and development company with activities in Syria, Morocco, Tunisia, Colombia and the U.S.A. provides the following update on activities underway in Morocco.

Rharb Drilling Programme
Operations have now been completed on the third exploration well of the Rharb drilling campaign. This well was drilled to the planned total depth (TD) ahead of schedule and under budget.

The Ben Fidal 2 well (BFD-2) was drilled to a total vertical depth of 1025 metres Measured Depth Below Rotary Table (m MDBRT) over a period of 10 days. The top of the interpreted channel fill sequence was encountered at approximately 890m MDBRT and the base of the channel fill sequence was encountered at approximately 950m MDBRT.

Significant gas shows were encountered through the 60 metre channel fill sequence, with the strongest show occurring at the base of the channel fill, consistent with the geological model. However, wire-line log interpretation suggests that the channel fill section is likely to be very finely laminated sand and shale and with uncertain production performance. Notwithstanding the significant gas shows encountered, following careful consideration of a number of economic and technical factors the Company has decided to plug and abandon the BFD-2 well as a non-commercial gas discovery.

The post drill review of the well result suggests that a gas accumulation is likely present at the BFD-2 well location, but that additional evaluation methods are required in order to more fully evaluate the commercialisation of these finely laminated reservoir sections.

Mahdi Sajjad, the Company's CEO commented: "We are encouraged that the BFD-2 well appears to have confirmed the geological model and encountered gas in the objective section. We will be undertaking further studies, including the results of this well, which may lead us to more robust evaluation methods and the potential commercialisation of these finely laminated reservoirs."

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