Partners in the Resan license, southwest Turkey, will perform a 5-well oil appraisal and step-out exploration program, set to commence before yearend, COVID-19 restrictions and weather permitting.
UK Oil & Gas PLC (UKOG), which signed an agreement with operator Aladdin Middle East Ltd. (ALM) for 50% non-operated working interest, will take an active technical role in the project. The agreement must be approved by the Turkish government, which is expected to take about 2 months.
The license covers 305 sq km of the southeast Anatolian basin, a geological continuation of the Zagros fold-belt petroleum system within the foothills of the Taurus-Zagros mountains in Iraq, Iran, and Turkey. Multiple producing oil fields containing proven recoverable reserves lie to the immediate west and southeast of the license.
The undeveloped Basur oil discovery and Resan oil pay, both within the license's Cretaceous Mardin limestones, contain an aggregate unrisked gross mean oil in place (OIP) of about 253 million bbl, with a significant high case (P10) gross aggregate OIP of 495 million bbl.
An undrilled exploration target in the shallower Garzan limestones, Prospect A, adds further unrisked upside OIP potential of between 68-112 million bbl in the mean and high case (P10), respectively.
Future oil production will be exported via road tanker to the nearest oil refinery at Batman, some 80 km from the license.
UKOG will fund 100% of the first commitment well plus a small 2D seismic survey. UKOG’s net expenditure for the one well plus seismic program is capped at $5 million. Thereafter, the company will fund its 50% interest share, expected to be about $1.5 million per well.