By the OGJ Online Staff
HOUSTON, Mar. 13�Sheer Energy Inc., Calgary, said Tuesday its subsidiary, Sheer Energy (Cyprus) Ltd., won an $88 million service contract to develop Masjed-I-Suleyman (MIS) oil field in Iran.
The National Iranian Oil Co. (NIOC) negotiated the contract, which is expected to become final within 90 days subject. Sheer Energy (Cyprus) operates the project with a 49% interest. Naftgaran Engineering Services Co., Tehran, a subsidiary of the Oil Industry Investment Co., Tehran, has the other 51%.
MIS field was the first oil pool discovered in the Middle East and was drilled in 1908. It is one of several large oil fields producing from the fractured carbonate Asmari formation.
The 4-year development plan calls for conducting a detailed reservoir simulation study, recompleting four to six wells, drilling two new vertical wells and eight horizontal wells, and constructing processing and water reinjection facilities to handle production of an incremental 20,000 b/d.
MIS field is 30 by 7 km. Sheer estimates the original reserves at over 6 billion bbl, of which 1.2 billion bbl has been produced. Average depth to the producing horizon is 1,000 m with net thickness ranging from 60-90 m.
NIOC is producing 4,500 b/d from the field. Its existing production is not part of the service contract.