Canneft Inc., Calgary, has signed an agreement with Turkmengeology in Ashgabat, Turkmenistan, to evaluate the Adzhiyap oil and natural gas territory, a 2,000 sq km block in southwest Turkmenistan on the border with Iran and on the Caspian Sea Coast.
Canneft and Turkmengeology will conduct a joint technical evaluation of the Adzhiyap territory over the next 6 months. At the same time, the companies will negotiate for an exploration license.
The technical evaluation will concentrate on the reprocessing of 2,500 km of existing 2D seismic, detailed geologic investigation, and infrastructure evaluation.
Canneft says the Adzhiyap territory is a "natural extension" of oil and gas fields contiguous to the block. The company postulates block reserves at 1-3 tcf of gas.
The existing gas pipeline in the Adzhiyap territory and access to the Caspian Sea mitigate the marketing risk, said Canneft.
Canneft has formed a consortium of Canadian and other high-tech western companies to take advantage of oil and gas exploration and production opportunities in Turkmenistan.
Turkmengeology is a state company that offers 2D and 3D seismic acquisition, processing and interpretation equipment, well logging equipment, and drilling rigs.