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By John Lee.

In its Interim Management Statement this morning, Dragon Oil gave the following update on its operations at Block 9 in Iraq:

"In 2014, the partners in Block 9 in Iraq, announced the discovery of oil in two formations in the consortium's first exploration well, Faihaa-1 in which Dragon Oil holds 30 percent.

"Open and cased hole tests were conducted in the Mishrif and Yamama formations with encouraging results.

"The well has been completed as a producer from the Yamama formation and the drilling rig has been released.

"The consortium plans to drill two additional appraisal wells in 2015 in order to fast track the development."

(Source: Dragon Oil)

By John Lee.

Kuwait Energy and Egyptian General Petroleum Corporation (EGPC), the national oil company of Egypt, have jointly announced the signing of an agreement whereby EGPC has farmed in a 10 percent participating interest in the Block 9 license.

The Block 9 field is located in the Basra Governorate, in Southern Iraq. The signing ceremony was witnessed by H.E Eng. Sherif Ismail, Minister of Petroleum and Mineral Resources of the Arab Republic of Egypt, and H.E Kuwait’s Ambassador to Egypt, Mr. Salem Al-Zamanan.

With this agreement, EGPC has become a partner with Dragon Oil Holdings Limited and Kuwait Energy, in the Block 9 license, where Kuwait Energy is the operator.

Eng. Tarek El Molla, EGPC CEO stated:

“We are pleased to announce EGPC’s first international investment. The merit of this investment is its contribution to building an economic relationship between Iraq and Egypt. Block 9 has huge potentials of oil reserves and resources, which add significant value for Egypt. This partnership with Kuwait Energy comes as the fruit of the Strategic Alignment Agreement signed in 2011.”

H.E Eng. Sherif Ismail commented:

“The partnership between EGPC and Kuwait Energy is a successful example of the public sector and the private sector coming together, each sector bringing in its share of knowledge, skills and strengths for the interest of the country.”

Kuwait Energy Chairman Dr. Manssour Aboukhamseen (pictured) stated:

“Kuwait Energy has always believed and continues to believe that the oil and gas business is a solid bridge for developing and strengthening ties between nations. This agreement exemplifies fruitful cross-Arab cooperation, bringing together Egypt, Iraq and Kuwait for one common goal: the economic and social development of the region.”

H.E Eng. Sherif Ismail added:

“With this agreement, we have extended the solid Egyptian-Kuwaiti partnership and bilateral cooperation into the region, for the benefit of the region and its people.”

The Exploration, Development & Production Service Contract (“EDPSC”) pertaining to Block 9 was signed in January 2013 after the award in 2012.

The first discovery was made in September 2014 in the Mishrif formation resulting in a flow rate of circa 2,000 BOPD on 32/64 inch choke, and the second discovery followed shortly in December 2014 in the Yamama formation resulting in oil flow rates of circa 8,000 BOPD on 64/64 inch choke.

(Source: Kuwait Energy)

By John Lee.

In its 2014 Full-Year Results, Dragon Oil gave the following update on its operations in Iraqi Kurdistan:

On 10 September 2014, the partners in Block 9 in Iraq, Dragon Oil (30%) and Kuwait Energy (70% and operator), announced their first oil discovery at the consortium's first target, the Mishrif formation, reached at 2,700 meters, in the Block 9 exploration well, Faihaa-1.

Preliminary open hole tests of the Faihaa-1 Mishrif formation resulted in flow rates of c. 2,000 bopd and 3,400 bopd of 20º API oil on 32"/64" and 64"/64" chokes, respectively.

Later in the year, in December, the partners reported their second oil discovery in the second target, the Yamama formation, reached at 4,000 meters in the same Faihaa-1 exploration well.

Preliminary open hole tests of the Faihaa-1 Yamama formation resulted in oil flow rates of c. 5,000 and 8,000 bopd of 35º API crude oil on 32"/64" and 64"/64" chokes, respectively.

The report from an independent petroleum engineer incorporating the results of testing the Mishrif formation indicated contingent 2C oil resources of 198 million barrels and contingent 2C gas resources of 56 Bscf net to Dragon Oil on a working interest basis.

More detailed testing on both formations will be conducted in the cased hole to help evaluate the commerciality of the findings. The consortium's strategy is to accelerate the evaluation of the Faihaa-1 discovery by drilling two appraisal wells in 2015 in order to fast track the development.

Block 9 is located in the Basra province and covers an area of 866km2. The work commitment on the block within the initial five-year exploration period includes de-mining, seismic acquisition and interpretation and the drilling of the exploration well Faihaa-1.

(Source: Dragon Oil)

By John Lee.

Shares in Petroceltic plc were trading up nearly 4 percent on Tuesday, following a positive note from a London-based broker.

Peel Hunt analyst James Carmichael claims that near-term drilling in Iraqi Kurdistan could significantly increase Petroceltic’s resource base.

Proactiveinvestors says the broker has a ‘buy’ recommendation and a 202p price target for the company, which is some 50% above the current price of 130p.

“We believe that the earnings visibility provided by the current portfolio, the potential for Dragon to return with a renewed offer, and the scale of the Shireen prospect provide a number of possible catalysts for share price growth over both the short and medium-term.”

(Source: Proactiveinvestors)

By John Lee.

In its Trading Statement this morning, Dragon Oil issued the following update on its operations in Iraqi Kurdistan:

"On 10 September 2014, the partners in Block 9 in Iraq, Dragon Oil (30%) and Kuwait Energy (70% and operator), announced their first oil discovery at the consortium's first target, the Mishrif formation, reached at 2,700 meters, in the Block 9 exploration well, Faihaa-1. Preliminary open hole tests of the Faihaa-1 Mishrif formation resulted in a flow rate of c. 2,000 bopd and 3,400 bopd of 20 API oil on a 32"/64" and 64"/64" chokes, respectively.

"Later in the year, in December, the partners reported their second oil section discovery in the second target, the Yamama formation, reached at 4,000 meters in the same Faihaa-1 exploration well. Preliminary open hole tests of the Faihaa-1 Yamama formation resulted in oil flow rates of c. 5,000 and 8,000 bopd of 35 API crude oil on 32"/64" and 64"/64" chokes, respectively.

"The report from an independent petroleum engineer incorporating the results of testing the Mishrif formation indicated contingent 2C oil resources of 198 million barrels and contingent 2C gas resources of 56 Bscf net to Dragon Oil on a working interest basis.

"More detailed testing on both formations will be conducted in the cased hole to help evaluate the commerciality of the findings. The consortium's strategy is to accelerate the evaluation of the Faihaa-1 discovery by drilling two appraisal wells in 2015 in order to fast track the development."

(Source: Dragon Oil)

By John Lee.

As part of its Drilling and Production Update this morning, Dragon Oil made the following statement about its operations in Iraq:

In December 2014, the consortium of Dragon Oil (30%) and Kuwait Energy (70% and operator) reported their second oil reservoir discovery at Block 9 in Iraq. The successful discovery was at the consortium's second target, the Yamama formation at 4,000 meters, in the exploration well Faihaa-1.

Preliminary tests of the Faihaa-1 Yamama formation resulted in the oil flow rates of around 5,000 and 8,000 bopd of 35 API crude on 32"/64" and 64"/64" chokes, respectively.

The consortium's strategy is to accelerate the evaluation of the Faihaa-1 discovery by drilling two appraisal wells in 2015 in order to fast track the development.

(Source: Dragon Oil)

By John Lee.

Dublin registered Dragon Oil has announced a second oil discovery at the Block 9 exploration well, 'Faihaa-1'.

This is good news for the consortium who have a 30% stake in the well along with the operator, Kuwait Energy who have a 70% stake in the block, located in the northern part of Basra province, southern Iraq.

The firm's first discovery at Block 9 occurred in September last year, 2700 metres into the Mishrif formation. The second target was the Yamama formation, at 4000 metres. Dragon Oil signed their oil services contract for the site in January 2013.

(Source: Dragonoil.com)

Kuwait Energy has announced that the consortium comprised of Kuwait Energy (70% and operator) and Dragon Oil (30%) has made its second oil discovery at 'Block 9', Iraq.

The successful discovery was at the consortium's second target, the Yamama formation at 4,000 meters, in its Block 9 exploration well, ‘Faihaa-1’, located in Northern Basra, Iraq.

Preliminary tests of the Faihaa-1 Yamama formation resulted in oil flow rates of circa 5,000 and 8,000 BOPD of 35 API crude on 32”/64” and 64”/64” chokes respectively.

The consortium will conduct more detailed testing on Yamama towards the end of the year.

Sara Akbar (pictured), CEO of Kuwait Energy, said:

“This is the second discovery in the first well drilled in Block 9, so we are delighted to have accomplished additional progress. We are confident that Block 9 has strong exploration potential.”

(Source: Kuwait Energy)

By John Lee.

Dragon Oil said on Monday that it was backing out of plans to make an offer of 230 pence a share for Irish operator Petroceltic, which has interests in Iraqi Kurdistan.

Shares in Petroceltic closed down 35 percent at 112.45 pence on Monday, 50 percent below their recent peak.

Chief Executive Brian O’Cathain (pictured) took the opportunity to pick up more than 100,000 shares at 115.8 pence.

(Sources: Petroceltic, Yahoo!)

By John Lee.

In its Interim Management Statement on Tuesday, Dragon Oil gave the following update on its Iraqi operations:

"On 10 September 2014, the consortium comprised of Kuwait Energy (70% and operator) and Dragon Oil (30%) reported its first oil discovery at Block 9, Iraq.

"The successful discovery was at the consortium's first target, the Mishrif formation at 2,700 metres, in its Block 9 exploration well, Faihaa-1.

"Preliminary tests of the Faihaa-1 Mishrif formation resulted in a flow rate of circa 2,000 bopd of 20 API oil on 32/64" choke. The consortium will conduct more detailed testing on Mishrif towards the end of the year.

"The consortium's strategy is to continue drilling activities, exploring deeper horizons and collecting further data, to evaluate the discovery and to define an appraisal plan. De-mining operations on the block are ongoing."

(Source: Dragon Oil)

(Minefield image via Shutterstock)