More oil found south of Yousefieh oilfield in Syria

Gulfsands finds more oil at Yousefieh South-1 in Syria. Gulfsands Petroleum (LON:GPX) has found oil to the south of its producing Yousefieh oilfield in Syria. The Yousefieh South -1 (YSO-1) exploration well encountered 11.5 gross metres of an oil bearing reservoir, however more work is required on the well, as initial flow testing did not recover commercial volumes. Gulfsands will plug-back and acidify the oil formation in a ‘rig-less’ operation later this month. Proactiveinvestors recommends * Mediterranean Oil and Gas: positive cash flow and company making development in the central Mediterranean region * Xcite Energy increases most likely oil in place at Bentley Field to 690 million barrels * IGAS is well placed to aid ailing UK gas industry It emphasised that this technique has previously proved very successful in improving production at the nearby Yousefieh Field. The poor flow performance may relate to the viscous nature of the oil, possible formation damage and the close proximity to the oil-water contact, the company said. The company’s operations in Syria centre on its 50% stake in Block 26, which hosts the Yousefieh and Khurbet East oilfields. Gulfsands also reported a significant operational milestone, with the commissioning of a 22 km oil pipeline to link the Khurbet East production facility to an oil export facility in Tal Adas. “The commencement of operations using the new pipeline marks a major milestone,” Gulfsands chief executive Ric Malcolm said. “[The pipeline) will further enhance operational efficiencies and reduce even further our already low cost of producing and transporting oil.” The exploration drilling continues to press ahead in Syria and the rig has been moved from YSO-1 to the Khurbet East exploration area. The company has also contracted a second rig to accelerate drilling. “We continue to improve efficiencies and build momentum in Block 26, with two rigs to be drilling concurrently from mid-October,” Malcolm said. “We are now producing oil from 12 wells and are within reach of our year-end target of 22,000 barrels per day.” Block 26’s combined production has now reached approximately 21,000 bopd, with approximately 3,000 bopd being produced from the Yousefieh field, and 18,000bopd from Khurbet East. At Khurbet East Gulfsands will next drill the Khurbet East-18 (KHE-18) delineation well. Elsewhere in the far north-east portion of Block 26, Gulfsands will drill the Zahraa-1 (ZAH-1) exploration well Unlike the Yousefieh and Khurbet East wells, Zahraa will be drilled on a ‘sole-risk’ basis, with Gulfsands having a 100% interest. Gulfsands highlighted that ZAH-1 will evaluate a structure that issimilar, on trend and adjacent to the producing Karatchok oilfield. ZAH-1 will spud in mid-October and it will take around 45 days to complete. ((06 OCT 2010))




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