BHP wins Algerian license after oil strike
BHP Petroleum Pty. Ltd. has been awarded a production- sharing contract for Blocks 219/220 in the Boukhechba area of central eastern Algeria by state firm Sonatrach.
The Boukhechba license covers 9,000 sq km, and is immediately west of Tin Fouye Tabankort oil and gas field-which is currently under development by Total SA and which is estimated to have reserves equivalent to 1 billion bbl of oil.
Award of the license follows BHP's announcement of an oil strike on its Blocks 401/402 concession, 240 km east of the giant Hassi Messaoud oil field.
The Boukhechba contract allows for 10 years of exploration divided into six renewable periods. BHP has committed to acquire 500 line km of 2D seismic data, reprocess 500 line km of existing data, and drill two wells.
BHP estimates the cost of its exploration obligations at $17 million. The operator has identified a number of prospects in the license area, which will be the target of the seismic survey.
On Blocks 401/402, BHP has completed Bir Sif Fatima North-1 wildcat, which reached a total measured depth of 4,005 m and cut oil pay in Triassic sandstone.
BHP said the well flowed on test 5,570 b/d of 42° gravity crude oil through a 44/64-in. choke. A second wildcat will now be drilled 10 km to the northeast.
Appraisal of the discovery is being implemented, with further drilling likely after the Rhourde Oulad Djemaa-1 is completed.
Five hundred line km of 2D seismic data is being acquired to firm up identified leads on Blocks 401/402.
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