
Tuesday, September 9, 2014
TransGlobe Energy issued an exploration update for its activities in Egypt. The company has drilled and cased NWG 3 as a Lower Nukhul new pool oil discovery on the North West Gharib concession. The well was drilled to a total depth of 5,360 ft and encountered 42 ft of net oil pay in the prolific Lower Nukhul formation based on well logs and oil recovered on wireline samples. The Lower Nukhul sandstone encountered in NWG 3 has similar permeability and porosity to the main Arta/East Arta wells which produced in excess of 1,000 bpd of oil, unstimulated. The company plans to expedite appraisal drilling to better define the discovery. The NWG 3 well was drilled near the northern edge of the existing 3D seismic (acquired in 2008) and therefore the northern limit to the new pool is undefined at this time. New 3D seismic data is currently being acquired on these lands and will be available in early 2015 for mapping. The drilling rig has moved to the fourth well in the program and is currently drilling NWG 4 which is targeting a Nukhul pool south of the Arta field.
A second drilling rig has finished drilling a successful multi-zone oil well at Hana West on the West Gharib concession. The rig has moved to the North West Gharib concession and is expected to commence drilling NWG 10 next week following scheduled rig maintenance. NWG 10 is targeting an internally estimated undiscovered prospective resource of 33 million barrels (un-risked) on a deterministic basis with an estimated geologic chance of success of 15%. The primary targets are the Markha/Rudeis sands similar to the Hana/Hana West and West Bakr K and M fields approximately 10 km north and west of NWG 10. Results from the 8,300 ft exploration well are expected in October.
In addition, TransGlobe has commenced seismic acquisition in the NWG concession, the 3D program is expected to be completed in 2014, is approximately 512 sq km and will cover the north/west portion of the concession including a potential northern extension of the NWG 3 discovery. The NWG 3D is the first portion of a larger $36-million seismic program (1,000 square km of 3D and 300 km of 2D in the Eastern Desert and 400 square km of 3D in South Ghazalat). The total program is targeting a Q2 2015 completion.
The third drilling rig will continue to drill development wells on the West Bakr concession into 2015.
On the East Ghazalat concession where the company holds a 50% working interest, the North Dabaa 2X well was drilled to a total depth of 14,237 ft and cased as a Jurassic gas condensate well. Based on open hole well logs and samples, the well encountered approximately 136 ft of gross interval in the Khatatba/Upper Safa formation with an estimated 36 ft of net pay. The Khatatba/Upper Safa formation was completed and flow tested using the drilling rig for a total duration of 64.5 hours. During this period, approximately 50.4 Mmcf of gas and 1,456 barrels of 57° API condensate were recovered. This represents average rates during the entire flow test of 18.7 Mmcf/d and 542 bpd of condensate. An extended flow period of 35.5 hours was performed on a 64/64 inch choke during the test resulting in rates of 21.3 MMcfd of gas and 551 Bpd of condensate. Shut-in periods were conducted during the test; however a detailed well test analysis has not been performed. The test results should be considered as preliminary and are not necessarily indicative of long-term performance. The well is currently shut-in for an extended build-up period. The results of North Dabaa 2X will be fully evaluated along with the prior North Dabaa 1X test to determine the extent of the discovery.
Following North Dabaa 2x, the drilling rig is scheduled to move to the Safwa development lease to drill a Safwa horizontal development well.