Continental Focus, International Reach

Cygam Updates Tunisia Drilling

Wednesday, June 18, 2014

Cygam Energy provided an operational update regarding the TT Field in the Bir Ben Tartar Production Concession (BBT Concession) in Tunisia. Through a wholly-owned subsidiary, Cygam holds a 14% working interest in the concession. Partners in the BBT, ETAP and Chinook Energy (operator), recently entered into a deal with Medco Energi to sell the subsidiary that holds its Tunisian assets.

Gross production from the TT Field averaged 2,602 bpd during May 2013. Average gross production during the first 10days of June was 2,890 bpd reflecting full contributions from the latest wells drilled in the field. Water injection into the main reservoir using the TT12 well commenced in April 2014. Re-injecting produced water is anticipated to reduce operating costs as well as provide critical reservoir pressure support ultimately increasing the recovery factor of the pool.

Cygam revealed that work continues on installing an early production facility and gathering system which will result in existing wells being flow line connected to a central tank battery and process facility. It is expected that this substantial infrastructure upgrade will be completed during 2014.

A six-well program was completed on the BBT with the TT15 being spud on December 21 and drilled to a total depth of 1,510 meters after being directionally drilled to a bottom hole location approximately 200 meters to the southwest of the surface location. The well was fracked in February and averaged 379 bpd over the first 30 days of production post fracking. The TT28 was spud on January 14 was drilled to a total depth of 1,420 meters, it was also fracked in February and averaged 63 bpd over the first 21 days of production before experiencing liquid loading issues; a velocity string and jet pump were installed during April.

The partners spud the TT18 on February 11 and drilled it to a total depth of 1,482 meters, fracking it in March. The well averaged 272 bpd over the first 30 days of production, with a velocity string and jet pump were installed in April. Next was the TT19 which was drilled to a total depth of 1,486 meters. After fracking the well averaged 186 bpd over the first 30 days of production. In April the TT29 was spud and drilled to a total depth of 1,485 meters. As a consequence of a poor cement bond, the well produced 100% water from a shallower zone and following a successful remediation attempt was left in a suspended state for possible use as a future water source well or, pending further investigation, to be completed as a producing well.

The TT14 vertical well was also spud in April and drilled to a total depth of 1,504 meters. The well was fracked in May 2014 and averaged 441 bpd over the first 21 days of production.

Cygam’s president and CEO Dave Taylor stated: “Cygam is encouraged by the latest development drilling results. The new wells have increased our understanding of the field and demonstrated there are areas, around TT-14 for example, where production results have exceeded expectations and created new opportunities for exploitation.”

 


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