ARCO Ghadames makes oil discovery in Algeria

A unit of BP Amoco PLC has made an oil discovery in Algeria. Partner Drucker Industries Inc., Vancouver, BC, reports that ARCO Ghadames Inc. has completed logging of the Semhari East-1 well at 3,900 m TD on the Hassi bir Rekaiz oil concession in Algeria. Petrophysical and reservoir formation data analysis are very encouraging, said Drucker, indicating the well encountered an oil reservoir over the two main producing horizons found in the region.

Drill stem testing over the main zone, the Tagi sandstone, will begin immediately. Of particular significance, says Drucker, is that logs suggest Semhari East-1 is structurally related to the Semhari-1 discovery well, drilled 10 km to the west.

Testing of Semhari East-1 is expected to be completed in 2 weeks. Upon completion of testing, the rig will be moved 9 km to the northeast to drill the next exploration well�the Sahara Mehadjer-1. Spudding of Sahara Mehadjer-1 is anticipated in the third week of June.

The Hassi bir Rekaiz concession is on the northern flank of the prolific Berkine basin, where oil discoveries in excess of 4 billion bbl have recently been made by Agip SPA, Talisman Energy Inc.-Burlington Resources Inc., Cepsa, BHP Petroleum Pty. Ltd., and Anadarko Petroleum Corp. Interests in Hassi bir Rekaiz are operator ARCO Ghadames, 50%; Turkish Petroleum Overseas Co. Ltd., 25%; and Santa Catalina L.H. Lundin (Algeria) Ltd., 25%. Drucker owns a 10% stake in Santa Catalina, giving it an indirect interest of 2.5% in the concession.

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