Atlas Petroleum discovers oil with Tunisia well

Uchenna Izundu
International Editor

LONDON, Aug. 19 -- A group of companies led by Atlas Petroleum Worldwide Exploration Ltd. will drill a sidetrack from the Ras El Besh 3 (REB3) well following an oil discovery on the Sfax permit off Tunisia. REB3 well reached a TD of 2,204 m.

The partners found oil in a 10 m thick carbonate interval in the Reineche formation. During the sidetrack they will contact 500 m of horizontal pay section to determine the oil accumulation and provide flow rate data in the horizontal section of the hole.

The result could open up a hydrocarbon trend in the northern half of the permit as this is the first offshore Reineche oil discovery south of the Kerkennah Islands.

The partners also are encouraged by the discovery because the Reineche formation produces oil and gas from two fields belonging to others, north of the Sfax permit boundary. These fields are 15 km from REB3 and within 5 km of the northern boundary of the permit.

"The REB3 well also penetrated a deeper horizon that tested oil in the Ras El Besh 2 well. Logs confirm the presence of oil in the El Garia formation but it was believed that the well would not recover sufficient reserves to justify a completion. Further analyses will be carried out to determine a future course of action," the companies said.

This is the first well drilled under the farmout agreement announced on Apr. 8 between Delta Hydrocarbons and BV Eurogas and Atlas Petroleum. Delta agreed to pay for the wells as part of the consideration for its 50% stake in the Sfax permit. Once these hit $125 million, future costs will be shared by Eurogas 22.5%, Atlas Petroleum 27.5%, and Delta 50%.

Contact Uchenna Izundu at [email protected].