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Kerkouane Permit -- Offshore Tunisia
G.R15.PU Permit (Pantelleria Permit) -- Offshore Italy
G.R15.PU, is located offshore the island of Pantelleria southwest of Sicily in Italian waters and the Kerkouane Permit is located offshore northeast Tunisia. The two permits are contiguous and comprise a total area of approximately 4,500 km2.
The operator has identified multiple leads and targets on these permits. Drilling operations were recently completed at the Lambouka-1 well in late 2010 where gas was encountered in the Abiod Formation. However, as a result of down-hole problems, no fluid samples or gas flow were established. The well was suspended with the intention of re-entering at a later date and drilling and testing the reservoir in a sidetrack hole up-dip of the existing discovery.
Gulfsands has completed its earn commitments with respect to the Kerkouane and Pantelleria Permits with the drilling of the Lambouka-1 well. Gulfsands has earned a 30% working interest in both permits by paying approximately 35% of the cost the Lambouka-1 well and reimbursing the operator for a portion of various pre-drill costs that include a recently completed 3D seismic programme.
Chorbane permit - Onshore Tunisia (Gulfsands: 40%)
The Chorbane permit is located in central Tunisia and covers an area of 2,428 km2. The permit is surrounded by several producing oil fields and extensive oil & gas infrastructure. Gulfsands; work commitment for the Chorbane permit included the drilling of one exploration well, the Sidi Dhaher- 1 well, which was concluded recently with the announcement on 3rd October, 2011 of a potential oil discovery. Gulfsands was responsible for paying 80% of the first $5 million in drilling costs, and 40% of the drilling costs in excess of $5 million, so as to earn a 40% interest in the permit.
A number of prospects and leads have been indentified within the permit, the most prospective being a large tilted horst block ("Sidi Daher") where the operator has identified multiple potential targets estimated to hold recoverable mean un-risked prospective resources of 175 billion cubic feet of gas ("bcfg") and 44 million barrels of oil from Tertiary and Cretaceous aged reservoirs.
Operations
Kerkouane
In April 640 km² of 3D seismic data was acquired over the Lambouka prospect area within the Kerkouane and Pantelleria permit areas. Interpretation of these data provided additional verification as to the integrity of the Lambouka structure prior to spud.
The Lambouka-1 well was spudded in mid-July using Atwood's Southern Cross semi-submersible drilling unit, and drilled to a depth of 2,786 m. Drilling operations were concluded in early September. Wireline log interpretation indicates that gas and possibly condensate was encountered in the Abiod formation; however, as a result of ongoing fluid losses and deterioration of the well bore it was not possible to safely recover fluid samples or pressure data from the formation. The well was suspended with the intention of re-entering at a later date and drilling and testing the reservoir in a sidetrack hole, probably targeting an area structurally up-dip of the existing well bore.
Gulfsands earned its 30% working interest in the Kerkouane and Pantelleria permits by paying approximately 35% of the cost of the Lambouka-1 well and reimbursing the operator for a portion of various pre-drill costs that include the recently completed 3D seismic programme.
Chorbane
There were no significant operations undertaken within the Chorbane permit in 2010.
Plans for 2011
ADX Energy, the operator of the Chorbane licence onshore Tunisia, has confirmed that drilling operations on the Sidi Dhaher-1 exploration well commenced Friday 26th August 2011.
Sidi Dhaher-1 has a planned total depth of 2,168 meters and is expected to take 33 days to drill. In the success case, additional time will be required for further formation evaluation.
The Sidi Dhaher prospect is located within the 2,428km2 large Chorbane Exploration Permit onshore central Tunisia near the port city of Sfax. The prospect is surrounded by several producing oil fields and extensive oil and gas infrastructure. The Sidi Dhaher-1 well is targeting an Eocene aged reservoir with operator estimated prospective resources of 175 billion cubic feet (5 billion m3) of recoverable gas and a Cretaceous aged reservoir with operator estimated prospective resources of 44 million barrels (5.9 million tons) of oil.
Additional targets have been identified in the deeper Douleb and Bireno reservoirs that produce oil and gas in the Guebiba-El Hajeb field immediately east of the Chorbane permit.
Gulfsands is earning a 40% interest in the Chorbane permit by meeting 80% of the well costs for the Sidi Dhaher-1 well which are capped at US$5 million and thereafter meeting its pro rata (40%) share of any additional costs beyond US$5 million. In the event of a commercial success with the Sidi Dhaher-1 well, Gulfsands will be entitled to become the operator of the Chorbane permit.
On the Lambouka permit it is planned to complete the interpretation of the 3D seismic acquired in 2010, re-map and update the volumetric estimates of the Dougga gas discovery (Shell 1981) as well as evaluate any new leads arising from the seismic interpretation. Prospects identified will be matured for possible future drilling. It is also intended to carry out a study into the potential commercial development of the gas resources at Dougga and Lambouka. Upon successful completion of the current phase of technical and commercial evaluations, appraisal drilling of both the Dougga and Lambouka structures will be required in order to reduce the volumetric uncertainty and establish commercial flow rates from each of these.