Melrose sees reserves hike on Egyptian block

Dec. 12, 2006
Melrose Resources PLC, Edinburgh, expects to increase oil and gas reserves of the El Mansoura Concession in the Nile Delta of Egypt on the basis of recent appraisal and development drilling. Melrose holds a 100% working interest in the concession.

Uchenna Izundu
International Editor

LONDON, Dec. 12 -- Melrose Resources PLC, Edinburgh, expects to increase oil and gas reserves of the El Mansoura Concession in the Nile Delta of Egypt on the basis of recent appraisal and development drilling. Melrose holds a 100% working interest in the concession.

The company's West Dikirnis No. 4 well flowed at a maximum rate of 1,930 b/d of oil through a 32/64-in. choke at a wellhead pressure of 1,550 psi.

"The well holds further potential," Melrose said. "The top section of the reservoir, which exhibited excellent characteristics, was not perforated in order to avoid premature gas-cap coning, but perforations can be added in the future to increase production."

Melrose temporarily shut-in the well and moved the rig to drill the West Dikirnis No. 7 step-out.

Robert Adair, Melrose executive chairman, the West Dikirnis No. 4 results and exploratory success elsewhere on the concession "very significant in terms of adding to our proven reserve base."

On retest, the West Dikirnis No. 2 produced 5,075 b/d on a 51/64-in. choke at a wellhead pressure of 1,658 psi. The test, restricted by equipment, gauged 2,200 b/d through a 24/64-in. choke at a wellhead pressure of 1,960 psi.

Melrose drilled the West Khilala No. 4 development well near the crest of the West Khilala structure in the Miocene Qawasim formation. The well reached TD of 10,400 ft and encountered 92.5 ft of clean gas-bearing reservoir. The gas-water contact is in line with those of the two previous wells in the field, with similar reservoir qualities.

The company is completing the well for testing and production and will move the rig to drill another West Khilala appraisal well.

In El Tamad oil field, the El Tamad No. 7 appraisal well, drilled to 7,100 ft, flowed 860 b/d of oil and 870 Mcfd of gas through an 18/64-in. choke after perforation with a wellhead pressure of 1,372 psi. This well's target oil zone was in the Miocene Sidi Salim formation. It is on production.

The El Tamad No. 4 appraisal, drilled later, encountered two pay intervals. After perforation, the well tested 866 b/d of oil and 182 Mcfd of gas on an 18/64th choke at a wellhead pressure of 1,167 psi. It will be completed for production.

No hydrocarbons were found in the SW Nabarouh No.1 exploration well, a 9,700-ft Qawasim test that has been plugged.

The Dimyarah No.1 exploration well tested 6.6 MMcfd of gas on a 24/64th choke with a wellhead pressure of 2,019 psi in the shallow Pliocene Kafr El Sheik formation. The well had dual targets identified by seismic amplitude anomaly. The deeper target was Miocene Abu Madi.

"Some of the remaining Kafr El Sheik section has been identified as having low-resistivity characteristics," Melrose said, which plans a long-term production test. "This unconventional reservoir is widely present on the concession, and a successful test here would have favorable implications for reserve potential elsewhere."

Production due
The company is on target to initially produce 40 MMcfd of gas from its West Khilala development project in the first quarter of 2007. It plans to double production by the second quarter of 2007.

Melrose expects to produce first oil in the third quarter of 2007 at its West Dikirnis project. Target gross field production is 10,000 b/d.

"The production facilities are being designed to accommodate the larger volumes which should result from continuing success in appraisal drilling over the next few months," the company added.

Development of Salaka gas field is under way with first production expected in the first quarter of 2007 at a rate of around 9 MMcfd. Another well may be drilled in this area in 2007.

The Turbay No. 1 and Tummay No. 1 wells have been hooked up to El Tamad facilities and will shortly start producing with combined potential of around 15 MMcfd and 100 b/d of condensate.

Melrose is waiting for approval to begin production from the Rawdah No. 1 gas well, which has been connected to South Mansoura facilities. It is expected to start production at around 10 MMcfd of gas.

In South Batra field, Melrose has completed remedial work and restarted gas flow with reduced water production for the South Batra No. 14 well. It is conducting a geological and reservoir engineering study and might apply the remediation technique used in the No. 14 well to others in the field.

The company is interpreting recently processed 3D seismic data over central and southern parts of the concession and expects to acquire further 3D data in 2007.

Contact Uchenna Izundu at [email protected].