The Company continues to work with the operator, Talisman, to appraise the giant oil discovery in the Oligocene reservoir of the Kurdamir discovery. This includes a 3D seismic program over the Kurdamir structure with acquisition that commenced in January 2013, drilling and testing the Kurdamir-3 well that was spudded on February 22, 2013, targeting an estimated 150-250 MMBOE of Gross Mean Prospective Resources, and an extended well test which is anticipated to start in the second half of 2013, subject to the approval of the KRG. Appraisal activities for the deeper Eocene and Cretaceous reservoirs will be deferred until additional insight is obtained on optimal drilling locations. The Company anticipates that the results of the 3D seismic survey currently underway over the Kurdamir structure will assist in this process.
Planned expenditures for the remainder of 2013 include approximately $25 million for the Kurdamir-3 vertical appraisal well (spudded February 22, 2013), $8 million for the Kurdamir seismic program which commenced in the first quarter of 2013 and $6 million for Kurdamir office costs and other Kurdamir Block activities. Contingent projects during 2013 may also include $9 million for a potential Kurdamir-3 sidetrack, if required, and, subject to KRG approval, $7 million related to commencement of extended well test production at the Kurdamir-2 well.
Sarqala-1 Extended Well Test ("EWT")
WesternZagros expects to recommence the EWT at Sarqala upon KRG approval to gain additional information in order to appraise the discovery for future development. Upon receipt of KRG approval, and the procurement of suitable rig and tubular equipment, the Company plans to complete a workover of the Sarqala-1 well in the second half of 2013 in order to allow future EWT production capability to increase beyond the current 5,000 barrels per day. Long lead items have been ordered for this workover. Engineering work is also underway for permanent facilities to increase EWT production capability at Sarqala including gas conservation measures. In particular, preliminary engineering design of the Sarqala first phase permanent facilities with 20,000 bbl/d capacity is underway in readiness to request engineering procurement and construction tenders at the appropriate time. Work is continuing on opportunities to utilize the associated natural gas from any future crude oil production to minimize the flaring of natural gas.
Hasira-1 Exploration and Appraisal Well
The Hasira-1 exploration and appraisal well rig set up is nearing completion with an anticipated spud date in early June, 2013 to appraise the extent of the oil leg previously encountered in the Jeribe reservoir, targeting 25-50 MMBOE of Gross Mean Prospective Resources, at the Sarqala-1 well and also to explore the deeper Oligocene reservoir, targeting a further 25-50 MMBOE of Gross Mean Prospective Resources. Significant oil shows were encountered in the Oligocene interval at Sarqala-1 but the Company was unable to evaluate them at that time due to wellbore conditions. Hasira-1 is expected to take approximately seven months to drill to a planned total depth of 4,100 metres.