Maha Energy AB, through its subsidiary Maha Energy (Oman) Ltd., agreed to farm out 35% of its 100% operated interest in Block 70 onshore Oman to Mafraq Energy LLC. Maha will hold 65% and continue as operator of the oil-bearing block, which contains Mafraq field.
Mafraq Energy will reimburse Maha for its prorated share of all past costs including the signature bonus, Maha said in a release Aug. 8. Mafraq also will be required to pay its share of all future expenditures on Block 70.
Immediate plans for the Mafraq oil field include drilling six wells to obtain reservoir information to assist in developing a full field development plan. Mobilization of the Gulf Drilling rig 109 is scheduled for October this year.
The Mafraq structure is a delineated heavy oil field that was extensively tested by Petroleum Development Oman (PDO) in 1988 and 1991. The field tested 15,700 bbl of 13° API oil over a period of 24 days using a progressive cavity pump (PCP) from a single well. The test well, MF-5, tested 100% oil for less than 1 day after which water production stabilized at around 25%.
According to independent reserve auditor Chapman Petroleum Engineering Ltd., the field may hold about 35 million bbl of recoverable oil.
The agreement is subject to Government approval in Oman.
