Afren Jumps 8% on Simrit-2 Oil Discovery

By John Lee.

Shares in Afren plc were up 8% on Thursday morning following the announcement that the Simrit-2 exploration well in the Kurdistan region of Iraq has been drilled to a depth of 3,800 metres and the total net oil pay has increased to 460 metres. In addition, a cumulative flow rate of 13,584 bopd has been achieved from three out of 12 zones to be tested.

Deepening of Simrit-2 well

Having previously encountered an estimated 409 metres of net oil pay throughout Cretaceous, Jurassic and Triassic reservoirs down to the initially planned total depth of 3,700 metres, Afren and operator Hunt Oil Middle East subsequently elected to deepen the well and continue drilling to a revised total depth of 3,800 metres in order to test additional prospectivity.

Analysis of data collected indicates the continual presence of light oil shows throughout the deepened section of the well, extending the estimated net pay encountered by the well to 460 metres. No oil water contact has been established in the target reservoirs.

Well test programme

Upon completion of drilling operations, an extensive well test programme commenced in June. It is the partners’ intention to conduct up to 12 separate drill stem tests (“DSTs”) throughout the Cretaceous, Jurassic and Triassic aged reservoirs.

To date, three DSTs have been completed at separate zones within the Triassic age Kurra Chine Formation, yielding an aggregate flow rate of 13,584 bopd of 39° API gravity oil.

Following completion of this first batch of DSTs, the partners will now switch the Viking-11 drilling unit for a work-over rig at the Simrit-2 location in order to complete the remaining nine planned DSTs.

The Viking-11 drilling rig will then be mobilised to commence drilling of the Simrit-3 exploration well in August. Afren has a 20 per cent. interest in the Ain Sifni PSC and is partnered by Hunt Oil Middle East (60 per cent. and operator) and the Kurdistan Regional Government (20 per cent.).

Osman Shahenshah (pictured), Chief Executive of Afren, commented:

The latest results on the Simrit-2 exploration well confirm the transformational potential of this discovery to Afren, further validated by the test results, suggesting excellent production capability.

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