By OGJ editors
HOUSTON, Jan. 17 -- Gulfsands Petroleum PLC, Houston, has signed letters of intent with MB Drilling Overseas Ltd., Damascus, Syria, for two land-based drilling rigs: the MB Rig 21, which is capable of drilling shallow Cretaceous wells; and MB Rig 3, designed for deeper Paleozoic zone drilling.
Gulfsands and equal partner Emerald Energy PLC, UK, have selected the first two prospects to be drilled on Block 26 in northeast Syria.
The agreements require MB 21 to drill one well with an option for a second well, while the MB 3, which will be shared with another company operating in Syria, is expected to be contracted for 1 year with an option to extend for two additional 1-year periods to enable the drilling of a series of Paleozoic wells during 2006-07. Gulfsands expects to sign definitive rig contracts shortly and negotiations are under way.
Souedieh North, in the northeast section of 11,000 sq km block, will be the first prospect to be drilled. The well will be drilled to a TD of 7,216 ft to test Cretaceous reservoirs similar to those producing in the adjacent Souedieh and Karachok oil fields. This prospect has estimated recoverable reserves in excess of 100 million bbl of oil. Gulfsands plans to spud the well May 1.
The second prospect, Tigris, is also in the northeast portion of the block. This well will be drilled to 14,760 ft TD, targeting a series of Carboniferous and Devonian sandstone reservoirs. The Tigris structure is directly underlying Souedieh oil field, the largest known oil field in Syria, where medium gravity oil is produced from mid-Cretaceous sands.
Wireline log evaluation of an existing well drilled some years ago on the structure has identified pay zones in the objective reservoirs. The Tigris-1 well will appraise the potential hydrocarbon accumulation of these reservoirs. The prospect has estimated recoverable reserves of more than 500 million boe. The well is expected to spud by late August.
Gulfsands is further evaluating the existing well and 3D seismic data to more accurately assess the reserves potential of the structure. It said the prospects for significant reserves additions are very good.
It plans to drill 4 wells on Block 26 by August 2007.
