Tiny Ajman to see exploration,production work
Ajman, U.A.E., has granted a concession to Norway's Atlantis Technology Services Ajman AS and a unit of Calgary-based Scimitar Hydrocarbons Corp. for work to spur production and further exploration in the tiny emirate.
The concession covers rehabilitation and workover of two onshore wells, as well as 3D seismic work to further delineate two major offshore prospects.
Scimitar, which holds a 30% interest, and Atlantis, which holds the remaining 70%, will pay a $1 million bonus to the government of Ajman. The participation agreement calls for $4 million worth of work to be completed in Ajman during the next 18 months.
The emirate produces only about 20 b/d of condensate.
Development plans
Atlantis will cover the costs of a $3 million 3D seismic program for the offshore portion of the concession area (see map).
Atlantis and Scimitar will share the costs of a $1 million project to rehabilitate, work over, and sidetrack horizontally from either of the two onshore wells.
Ajman's two offshore prospects apparently overlap with gas discoveries in the neighboring emirates of Sharjah and Umm al Qaiwain. The first, 1 Sharjah, flowed on test at a rate of 14.5 MMcfd of natural gas from Cretaceous Thamama. The second, 1 Umm al Qaiwain, flowed on test at a rate of 41.5 MMcfd of gas and 452 b/d of condensate.
Atlantis is a unit of Atlantis Holding Norway AS, which has development projects under way in Tunisia.
New start
Scimitar, formed in 1996, describes itself as a niche operator specializing in "cost-effective know-how" in international plays, where its principals have "know-who," said Chief Operating Officer Gordon Holden.
He said the Ajman prospects are typical of areas where the company hopes to focus. "We're specializing in midsize fields that 'elephant hunters' will ignore," said Holden. "We're not going to plan on high prices to bail us out....We're lean, mean, and cheap."
The company is chaired by Gerald Mackenzie, who has previously formed other independent oil and gas concerns under the Scimitar banner.
The company plans to spend $278 million (Canadian) for exploration worldwide during 1997-99.
Copyright 1997 Oil & Gas Journal. All Rights Reserved.