Georgia: Skyland Petroleum announces Georgia gas discovery

Jul 07, 2016 12:00 AM

Skyland Petroleum has announce that testing of the Kumisi-2 well in Georgia has resulted in gas flow with good pressure from the Lower Eocene interval.  

The presence of gas in the Lower Eocene interval (which was also found to be gas bearing in the previous well) has significantly de-risked this prospect and gas produced to surface during the testing programme proves the presence of gas in the licence area, although no precise flow rate could be measured at this time. Skyland is in discussions with the operator in preparing the next steps on this discovery well.  

The Kumisi-2 Well was drilled for targets in the Eocene sequences and, based on the independent resources evaluation carried out by Gustavson Associates with an evaluation date of 3 December 2015, at that time the Lower Eocene interval (gross for the Block XIG License) was assessed to have a: (i) best estimate level of 319 billion cubic feet (Bcf); (ii) low estimate level of 146 Bcf; and (iii) high estimate level of 600 Bcf of unrisked prospective resources present (at best estimate level).

The well is some 10 kms from Tbilisi, the capital of Georgia and is close to operational infrastructure. Georgia is reported to be paying high international market price for gas supplied by Azerbaijan and this gas is being used for domestic purposes due to local demand.  

Mark Sarssam, Chief Operating Officer, commented:'We are very encouraged by the recovery of gas from this well. Although further work will be required to establish the full potential, given the location of the well and adjacent infrastructure, any commercial development of gas within the licence area should be relatively simple. Our discussions with the operator continue and meanwhile this stage of testing has been completed.'

Note: Skyland holds a 20% interest in Block XIG which contains the Kumisi structure and success in this well will open up an additional fairway within the area which could potentially be of a significant size.

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