Canadian firm gets 7th of November block

Joint Oil of Libya & Tunisia has awarded the 7th of November block in the southern Mediterranean to Canadian Superior Energy Inc., Calgary.

Sep 3rd, 2008

By OGJ editors
HOUSTON, Sept. 3 -- Joint Oil of Libya & Tunisia has awarded the 7th of November block in the southern Mediterranean to Canadian Superior Energy Inc., Calgary.

The work commitment in the first 4 years of the 7-year exploration period calls for drilling three exploration wells and one appraisal well and shooting 300 sq miles of 3D seismic on the 750,000-acre block.

Accompanying the exploration and production-sharing agreement is a swap agreement that awards Joint Oil an overriding royalty interest and optional participating interest in Canadian Superior's Mariner Block in the Atlantic off Nova Scotia.

Joint Oil is owned equally by the Tunisian government through Entreprise Tunisienne d'Activites Petrolieres (ETAP) and the Libyan government via Libya Oil Holdings.

Canadian Superior will operate the block, 75 miles offshore in 250-375 ft of water. Nearly equal parts of the block fall in the waters of the two countries.

Parts of the block lie along the productive trends of giant Bouri oil field off Libya and giant Ashtart field off Tunisia, where cumulative production is 750 million bbl and 250 million bbl of oil, respectively.

Joint Oil and Canadian Superior have identified a number of highly promising prospects on the block using the large existing seismic database that represent a variety of geological plays and proved hydrocarbon systems.

The required appraisal well is to be the first well in a fast-track drilling program. It will offset two large oil and gas discoveries drilled in the 1990s on a feature known as Zarat on an adjacent contract area near the 7th of November block's southwestern corner.

Based on 3D seismic shot subsequent to the discoveries, a large portion of the undeveloped Zarat discovery area is interpreted to extend north into the 7th of November block. The primary oil, condensate, and gas reservoirs are expected at about 9,000 ft.

Canadian Superior said planning and rig contract discussions are under way targeting a two-well, back-to-back drilling program likely starting in within 6 months.

The first exploration well is to be drilled on a geologically related seismic prospect named Fisal about 6 miles northeast of the Zarat appraisal wellsite.

The companies said that eight of the undisclosed number of companies that expressed interest in the block were chosen to negotiate with Joint Oil before it awarded the block to Canadian Superior.

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