Gulfsands Petroleum plc, the oil and gas production, exploration and development company with activities in Syria, Iraq, and the U.S.A., is pleased to provide the following update on the Company's operations at Block 26, Syria where Gulfsands holds a 50% interest and acts as operator.
KHE-13 Development Well Intersects 29 Metre Net Oil Column and Flows Oil
The KHE-13 development well, located approximately 1.5 kilometres to the south-west of the KHE-1 discovery well and approximately 1.4 kilometres north-west of the KHE-8 appraisal well, encountered the top of the Cretaceous Massive Formation at a measured depth ("MD") of 1936 metres (1539 metres true vertical depth sub surface ("TVD SS")) and was drilled to a total depth of 1990 metres MD (1593 metres TVD SS).
Preliminary interpretation of drilling data and wireline logs has identified a gross oil column within the well-bore of 33 metres with a net pay of 29 metres having an average porosity of 18%, similar to previous wells. The base of the oil-bearing reservoir is at a depth of 1969 metres MD (1572 metres TVD SS). A definitive oil-water contact was not identified in the well-bore.
An open-hole drill-stem test was conducted over the interval 1933-1973 metres MD. The KHE-13 well flowed naturally over a 24 hour test period at an average rate of 1020 barrels of oil per day ("bopd") on a 32/64" choke setting. Negligible quantities of formation water were produced during this flow period.
The well has been completed as a future production well and plans are in place to tie the well into the Khurbet East Early Production Facility ("EPF"), located approximately 3.5 kilometres north-east of KHE-13.
Forward Drilling Programme
Following the completion of operations at KHE-13 the rig was moved to the KHE-14 drilling location approximately 4.9 kilometres south of the KHE-1 discovery well. Drilling of KHE-14 has now commenced and is designed as a vertical development well to intersect the oil water contact in the Khurbet East field. The well should also provide valuable information on reservoir presence and continuity in the south-west portion of the field.
The first well in the 2010 exploration drilling programme, Zaman-1, will commence drilling after completion of operations on KHE-14. The Zaman prospect is located approximately 4.5 kilometres to the south of the Khurbet East Field as currently delineated and targets the same Cretaceous Massive formation as is under production at Khurbet East.
Khurbet East Field Oil Production
Average daily gross oil production at the Khurbet East field continues to be in excess of 17,000 barrels per day with the result that as of 17th December, cumulative gross oil production will have reached 6 million barrels, with minimal water production and minimal pressure depletion being observed to date.
Ric Malcolm, Gulfsands CEO, said
The successful drilling and testing of the KHE-13 development well is a pleasing result, as is the continued steady oil production from the Khurbet East Field and the reaching of another significant milestone this week of 6 million barrels gross production."
This release has been approved by Richard Malcolm, Chief Executive of Gulfsands Petroleum Plc who has a Bachelor of Science degree in Geology with 29 years of experience in petroleum exploration and management. Mr. Malcolm has consented to the inclusion of the technical information in this release in the form and context in which it appears.