RAK seeks to revive Persian Gulf Saleh field

RAK Petroleum PCL signed an agreement with Ras Al Khaimah Gas Commission to take a 100% stake and operatorship of Saleh field in the Persian Gulf off Ras Al Khaimah in exchange for 100 million shares in RAK Education Co.

Oct 8th, 2010

By OGJ editors
HOUSTON, Oct. 8
– RAK Petroleum PCL signed an agreement with Ras Al Khaimah Gas Commission to take a 100% stake and operatorship of Saleh field in the Persian Gulf off Ras Al Khaimah in exchange for 100 million shares in RAK Education Co.

The field produced 109 bcf of gas and 14.4 million bbl of condensate in 1984-88 and small volumes intermittently since then, from Middle Cretaceous Mishrif carbonates at 4,500 m. A 45-km, 18-in. pipeline connects the field with Rakgas gas and liquids processing facilities on the RAK coast.

RAK Petroleum, which already held 40% interest in the nonproducing field, expects to begin redevelopment in the first half of 2011 by deepening an existing well to Lower Cretaceous Thamama carbonates. The original field had seven producing wells on five platforms.

The company said it derived encouragement from fresh reservoir studies, technology advances, and oil and gas prices higher than when the field was first developed.

As part of the agreement, Rakgas is being offered a back-in right, exercisable during a 3-month window following completion of the first Saleh well, for a 30% participation upon payment of 30% of well costs.

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