By John Lee.
Shares in oil exploration company Afren closed up over 3% on Tuesday following the announcement of the company's interim results.
The company gave the following update on its operations in Iraqi Kurdistan:
Extensive testing commenced at the BR-1 well on 7 July 2012 and has yielded oil rates in excess of 6,000 bopd of 28° to 32° API oil, as well as valuable information on the production characteristics of the Mus/Adiayah reservoir. The well is currently being completed for long term production. Produced oil to the required sales specification will flow to storage tanks that have been installed as part of the initial development phase ahead of sale into the domestic market.
As part of the ongoing development of the Barda Rash field, the Company will next seek to re-enter, workover, test and commission the existing BR-2 and BR-3 wells which will be tied back to the Early Production Facility ("EPF") at the central BR-1 well location, and remains on track to deliver gross production from the initial three wells of between 10,000 to 15,000 bopd by the year end.
Post completion of this initial phase, the Company will commence the drilling and completion of multiple new development wells with the intention of increasing production to a planned trucking capacity of 35,000 bopd and ultimately to a targeted 125,000 bopd by 2017. Following this, the Company will focus on the development and production of the heavier oil resources, which will offer further large scale production growth.
On 17 April 2012, the Company announced that the Simrit-2 exploration well had successfully encountered an estimated 1,342 ft of net oil pay in Cretaceous, Jurassic and Triassic age reservoirs. An estimated 1,024 ft of which is interpreted as containing light oil. The objective of the Simrit-2 exploration well was to test the western extent of the Simrit anticline. The well was initially drilled to its prognosed total measured depth of 12,139 ft (12,129 ft true vertical depth). As there were continuing strong hydrocarbon shows, Afren and operator Hunt Oil Middle East elected to deepen the well and continue drilling to a revised total depth of 12,467 ft to test additional zones of prospectivity. Analysis of data collected over the deepened section of the well indicates the continual presence of light oil shows, and extends the estimated net pay encountered by the well to 1,509 ft. No oil water contact has been encountered in the target reservoirs.
It is the partners' intention to conduct up to 12 separate drill stem tests ("DSTs") throughout the Cretaceous, Jurassic and Triassic aged reservoir, which commenced in June. 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 switched 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 was then mobilised to commence drilling of the Simrit-3 exploration well.