In its announcement this morning of results for the year to end of December 2011, Sterling Energy gave the following review of its operations at the Sangaw North block in Iraqi Kurdistan, in which it has a 53.33% working interest:
The Sangaw North block lies in the foothills region of the Zagros fold belt, approximately 140km south east of Erbil, the capital of the Kurdistan region of Iraq.
The Sangaw North-1 exploration well, commenced in 2010 was drilled to a total depth of 4,190m into the Triassic aged Kurra Chine formation and in the current reporting period three flow tests were conducted across intervals between the Triassic aged Kurra Chine and the Cretaceous aged Kometan formations. Gas was produced, along with formation water, at rates that are not commercial and the well has been plugged and abandoned. Details of the three flow tests conducted in the current reporting period are as follows:
DST-3 tested an open-hole interval from 3,338m to 4,190m across the Jurassic Mus and Butmah formations and the Triassic Kurra Chine formation. The well flowed at a stabilised rate of approximately 4.6 million standard cubic feet of gas and 7,280 barrels of formation water per day during a 12 hour flow period through a 96/64ths inch choke with a wellhead pressure of 470 pounds per square inch. Analysis of gas samples, following the flow test, indicated that 53 per cent of the produced gas was hydrocarbon gas with the remainder comprising 46 per cent hydrogen sulphide and 1 per cent carbon dioxide.
DST-4 tested a 100m cased hole interval within the Jurassic aged Sargelu formation. Formation gas and water were observed in small quantities at surface but sustainable flow rates were not achieved.