Eric Watkins
Senior Correspondent
LOS ANGELES, Aug. 13 -- Key Petroleum said it has been notified that oil has been encountered in the first two onshore wells drilled by its partner Tullow Oil PLC in Suriname's Uitkijk Block.
Key said the wells were about 500 m deep and that further drilling and post-well study, which may include testing, will be required to establish commercial viability.
Key Petroleum, through its 50% holding in Portsea Oil & Gas NL, owns a net 1.75% free carried interest in the two onshore Suriname permits, the 750-sq-km Uitkijk block and the 2,500-sq km Coronie block, through an agreement with Hardman Oil & Gas Pty. Ltd., now owned by Tullow Oil.
Paradise Oil NV has a 60% stake in the concession, while Tullow Oil holds a 40% stake acquired through its control of Hardman Resources Ltd. which last year acquired the 40% interest in the Uitkijk and Coronie concessions (OGJ Online, Apr. 24, 2006).
The concession area adjoins the country's two main producing oil fields—Tambaredjo and Calcutta—which collectively have more than 1 billion bbl of oil in place. Current production is about 13,000 b/d.
Contact Eric Watkins at [email protected].
