BR, Talisman and Sonatrach to develop MMW field in Algeria's Berkine Basin

Jul 18, 2000 02:00 AM

Burlington Resources, through its wholly owned subsidiary, Burlington Resources Algeria, Talisman Energy of Canada, through its wholly-owned subsidiary, Talisman (Algeria) and Sonatrach announced their decision to develop the MMW Field in the Menzel Lejmat Block 405a in the Berkine Basin of Algeria.
Burlington Resources has previously announced numerous exploration and appraisal well successes on Block 405a. In addition to previously announced well results, BR confirmed that the MLSE-4 and MLW-2 wells had been successfully tested.
The MLSE-4 well, located 4 km (2.5 miles) west of MLSE-1, flowed on four separate tests, with the best individual rates being 5,078 bpd of oil from the Triassic and 68.5 mm cfpd of gas (mm cfpd) from a test in the deeper RKF reservoir. Total combined rates of over 11,000 bpd and 100 mm cfpd were achieved. In MLW-2, a 6 km (3.7 mile) step out to MLW-1, a rate of 4,125 bpd was obtained from the main Devonian sandstone. A third recent well, MMW-4, has been deemed non-commercial, after encountering the objective zones below the MMW field hydrocarbon contact.

These well results, combined with prior results and studies, have confirmed a suitable plan for the commercialisation of the numerous discoveries within Block 405a and a request for an Exploitation Permit has been submitted to the Ministry of Energy to commence field development at mm. The first phase of development will concentrate on construction of a Central Production Facility (CPF) and an oil export pipeline.
This phase is anticipated to produce an initial 16,000 bpd by mid-2002 from the Triassic and underlying Devonian reservoirs. Phase I development is expected to cost approximately $ 150 mm. Further investment on the MLC, mm-Phase 2, MMW and MLW field satellites is planned to follow the installation of the CPF and is expected to increase production to about 40,000 bpd by 2004. This additional development will require further government approvals.
Bobby Shackouls, BR's Chairman, President and CEO commented, "This decision marks a turning point in our activities in Algeria. With the decision to proceed with the development of the mm Field and its Satellites we are entering a new phase of our partnership with Algeria and beginning the transition from exploration to development and production operations. We are very excited by this and look forward to the continuation of our long and productive relationship with our partners Sonatrach and Talisman."

BR, through its wholly-owned subsidiary, Burlington Resources Algeria has a 65 % working interest in this productive area under a Production Sharing Contract with Sonatrach.

Talisman Energy, through its wholly-owned subsidiary Talisman (Algeria) holds the remaining 35 % working interest.

Sonatrach has the option to participate in the development and production of commercial discoveries.

Burlington Resources and Talisman are entitled to recover exploration costs from production during the exploitation phase.

Source: BusinessWire
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