New Oil Find in Iraqi Kurdistan

Bijell Appraisal Programme

Bijell-3, the first well to appraise the Bijell discovery, spudded in January 2012. It has been drilled 8km to the north-west of the Bijell-1 discovery well and 26 km to the west-northwest of the Bekhme-1 exploration well to a total depth of 4,980 metres in the Sarki formation in the Lower Jurassic. Following no commercial inflow of hydrocarbons being encountered during the course of a well testing programmeconsisting of seven tests, it is proposed that the well will be abandoned. However, the extensive appraisal programme of the Bijell discovery continues with Bijell-7, which spudded in December 2012 10 km to the south-south-east from the Bijell-1 discovery well, and four further appraisal wells. Bijell-2 and Bijell-5 are scheduled to spud in Q1 2013 and Bijell-4 and Bijell-6 are planned for Q3 2013.

Bijell Extended Well Test

Construction and commissioning of an Extended Well Test facility ("EWT") for the Bijell discovery is ongoing. The Bijell EWT facility, of a total gross capacity of 10,000 barrels of oil per day and a storage capacity of 30,000 barrels, is scheduled to be completed in February 2013. The facility will be tied to the Bijell-1 discovery well, which will be completed as a producer once a work-over rig has arrived in late February 2013 with first test production expected in May 2013.

In addition, the acquisition of 490 km² of 3D seismic data, which commenced in 2012, is continuing.

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