Revised Resource Assessment: Kurdamir-2 Well Eocene Reservoir
During the drilling of the Kurdamir-2 well an interpreted oil bearing, fractured Eocene reservoir section with gross thickness of 275 metres was encountered similar to the Eocene reservoir section encountered in Kurdamir-1. A petrophysical interpretation of the Kurdamir-2 wireline logs through the Eocene reservoir has been completed and this, together with mud gas data, hydrocarbon shows from cuttings, correlation to the Kurdamir-1 well and revised seismic mapping, have resulted in a revised prospective resource assessment. Similar to the Oligocene reservoir, the lowest known oil in Kurdamir-2 is interpreted to indicate that the oil column extends significantly deeper than the limit of four-way closure of the Kurdamir structure, as mapped on seismic.
This indicates that the Eocene reservoir is involved in a much larger trap which also likely extends off the Kurdamir Block onto the adjacent blocks. Based upon both this new information and the fact that no formation water was encountered while drilling this Eocene reservoir section, the revised assessment for Mean Prospective Resources has increased from 124 MMbbl of oil to 278 MMbbl of oil on the Kurdamir Block as of June 1, 2012.
Sproule carried out its independent audit in accordance with the current guidelines outlined in the Canadian Oil and Gas Evaluation Handbook (“COGE Handbook”) and in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities (“NI 51-101”).
Pursuant to the COGE Handbook, an audit is the process whereby an independent qualified reserves auditor carries out procedures designed to allow the auditor to provide reasonable assurance that a reporting issuer’s reserves data (or specific parts thereof) have, in all material respects, been determined and presented in accordance with the COGE Handbook and are, therefore, free of material misstatement.
Table 1, below, provides an estimate of the gross unrisked prospective oil, and oil equivalent, resources in the Eocene reservoir on the Kurdamir Block including this latest Sproule audit.