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Friday, January 2, 2015
DNO and Tunisia’s ETAP saw the completion of the Jawhara-3 well on the Sfax Offshore Exploration Permit. The Jawhara-3 well was vertically drilled to a total depth of 2,815 meters. The Douleb and Bireno fractured carbonate formations proved to be water bearing in the compartment of the structure targeted by the well. Two other secondary objectives had oil shows.
Further analysis of the well’s logging and testing results will be performed to re-evaluate the Jawhara field’s oil-in-place estimates.
Petrogas E&P Tunisia BV, a wholly-owned subsidiary of Petrogas E&P LLC, acquired a 35% participating interest in the permit from DNO in November 2014. Under the terms of the farm-out agreement, Petrogas will pay a part of DNO’s share of the Jawhara-3 well cost in addition to its own paying interest share. Petrogas will also pay its paying interest share of prior expenditures incurred by DNO.
Completion of the farm-out is subject to approval by Tunisian authorities. Once completed, DNO will hold a 52.5% participating (60% paying) interest in the permit. The other partners in the permit are Eurogas International Inc. and Atlas Petroleum Exploration Worldwide Ltd. which together hold a 12.5% carried interest.
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