TransGlobe Energy discovers new oil reserves in Yemen

Dec 11, 2002 01:00 AM

TransGlobe Energy discovered new oil on Block S-1 in Yemen. The second exploration well of the Block S-1 2002 drilling program, An Nagyah #2, was suspended as a future oil producer after testing light sweet oil. The well commenced drilling during November 2002 and was drilled to a total depth of 1,624 meters.
An Nagyah #2 encountered a gross section of 28 meters of Upper Lam reservoir sandstone. A lower 9.0-meter perforated section of the oil interval flowed at a sustained rate of 860 bpd of oil and 400 mm cfpd of natural gas with a 150 psi flowing pressure.

An additional 5.5 meters of oil bearing section was perforated and was flow tested at a maximum rate of 1,091 barrels of 45.8 degree API oil and 543 mm cfpd of natural gas with a 320 psi flowing pressure. No water was produced during the test. Subsequently an additional 6.5 meters was perforated, including a 2.0 meter overlying gas zone. This entire interval was tested at a sustained rate of 410 bpd and 3.7 mm cfpd of natural gas with a 950 psi flowing tubing pressure.
The An Nagyah #2 well evaluated the An Nagyah structure previously drilled by Shell in 1992 named An Nagyah #1. Although An Nagyah #1 had indicated oil and gas pay in the Lam Formation, it was never tested. The An Nagyah structural closure mapped on 3-D seismic data could be up to 18 sq km.

The company intends to move forward with an appraisal well on the An Nagyah structure in the current drilling program. A successful appraisal well at An Nagyah could lead to a fast track development of the discovery. The nearest sales pipeline connection that may be utilized is approximately 28 km from An Nagyah.
The drilling rig is currently moving to An Naeem #3 to drill an appraisal well. An Naeem #3 will test for an anticipated oil rim underlying the gas and condensate found in the Alif sandstone in An Naeem #1 and An Naeem #2. The Tasour #8 development well on Block 32 commenced drilling on December 7. Tasour #8 will be directionally drilled from the Tasour #1 surface location to test the field extension and new reservoir found in Tasour #7.
If successful, Tasour #8 could be tied in to the existing production line a few days after completion. A second well, Ghoraf #1, is expected to immediately follow Tasour #8 and will test an exploration prospect on the north-western portion of the Block. A new 2-D seismic survey commenced in December. The seismic is expected to further define several new exploration prospects for the 2003/2004 drilling program.

TransGlobe Energy is a Canadian based exploration and production company with oil and gas projects in Canada and Yemen. TransGlobe is currently producing 2,300 bpd of oil equivalent.
The company's 2002/2003 drilling program anticipates five to seven additional exploration, appraisal and development wells on two properties in Yemen. TransGlobe also plans to drill three to five gas exploration wells in Canada during 2003.

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