Continental Focus, International Reach

Panoro Contracts Rig for Sfax Well

Thursday, November 1, 2018

Panoro Energy signed a Heads of Terms with Compagnie Tunisienne de Forage (CTF), Tunisia’s state-owned drilling contractor, for use of the CTF-4 onshore rig. Panoro will use the rig to drill its Salloum West-1 well (SAMW-1) located on the Sfax Offshore Exploration Permit (SOEP).

The spud date of the SAMW-1 well is anticipated to be in H1 2019 and is subject to the entry into a second renewal period of the SOEP for a period of three years, and the subsequent approval of the final drilling program and budget by state firm ETAP. Advanced discussions for the renewal are ongoing with the Tunisian Authorities.

The SAMW-1 well, to be directionally drilled from the shore as a deviated well, comes only three months after the closing of the acquisition of DNO Tunisia.

The primary objective of the SAMW-1 well is the Bireno formation, at approximately 3,200 meters vertical depth, where the company has identified, based on 2D and 3D seismic data, what it believes to be an extension of the Salloum structure to the west. The SAMW-1 well will target an independent fault compartment up-dip from the Salloum-1 well which was drilled by British Gas in 1992 and tested the Bireno formation at a rate of 1,846 bpd.

The objective of the SAMW-1 well is to prove up additional resources in the vicinity of the Salloum-1 well and subsequently fast-track the development of Salloum through a tie-in to existing adjacent oil infrastructure.

The decision to drill this new well is supported by rig availability, cost-savings due to drilling equipment for the well already being owned and stored in Panoro’s Sfax warehouse, existing 2D and 3D seismic covering the SAMW-1 location, close proximity to the Salloum-1 discovery well, the existing adjacent oil infrastructure, and a high chance of success.