The North West Gemsa Concession, in addition to being an exploration permit, contains two producing development leases:
- The Al Amir Development Lease
- The Geyad Development lease
The developments are currently run by a development company named PetroAmir Ltd, with interests in the development company reflecting those of the exploration licence.
Further intensive exploration, appraisal and development drilling is planned over the next eighteen months. This will include drilling water injection wells to support the oil production in both Al Amir SE and Geyad field’s wells as required. In addition, plans and construction are now underway to construct facilities and a gas pipeline to the nearby SUCO facilities for gas export and sale. The current production rate from the NW Gemsa fields of Geyad and Al Amir SE is between 7,200 and 7,700 bopd.
Fluid offtake from the Geyad and Al Amir SE fields is being to be managed according to good oil field practice, as the waterflood programme is initiated and becomes operational and proven effective to maximize recovery. Gross production from start up in February 2009 through end February 2011 was 4.6 MMBO.
In the medium and long term, the continuing development should see production rates rise towards the end of 2011 and certainly in 2012. Subject to continuing successful development, rates should reach in excess of 12,500 boepd.
This is a highly successful venture for Circle Oil with a 40% ownership of this Egyptian asset base, and the company remains thrilled with the continuing positive results achieved.
Third Party Assessment
An independent third-party assessment conducted for Circle Oil in April 2010 has valued the most likely gross ultimate recoverable resources from the NW Gemsa fields at 24.1 MMBOE (recovery factors varying from 17.5 to 32.5 depending on formation), and upside to 41 MMBOE ( gross, recovery factors varying from 25% to 45% depending on formation).
A new resource estimates was completed in June 2011 taking into account the results of the drilling and development activity up to ,but not including Geyad-3.^
The report states that the most likely (P50) URR for the discoveries in NW Gemsa in Al Amir SE, Geyad plus South Gharib in Al Amir are 30.0MMBO and 34.2 bcf of gas, which together equates to 35.9MMBOE gross (14.4MMBOE net).3 This constitutes a 49% increase over the 2010 figure of 24.1MMBOE gross (9.6MMBOE net). The most likely unrisked URR in the Kareem reservoir in the Al Amir prospect is 3.9 MMBOE gross with a geological probability of success of 84%, as assigned by RPS. The Al Amir Kareem area volume was included in the Al Amir SE URR in the 2010 report, as at that time it was considered as an adjoining portion to Al Amir SE which had and has still not been drilled, but could be reasonably judged to be economically productive on the basis of geological, geophysical and engineering data. The 2011 total most likely (P50) recoverable resources estimate, to compare like with like areas (including Al Amir Kareem) with the 2010 report, is 33.2MMBO and 38.1 bcf of gas, which together equates to 39.8MMBOE gross (15.9MMBOE net). This constitutes a 65.1% increase over the 2010 figure of 24.1MMBOE gross (9.6MMBOE net).
The upside estimate (P10) for the discovered fields increases to 54.5MMBOE gross (21.8MMBOE net) which represents a 33% increase over the 2010 figure of 41.0MMBOE (16.4MMBOE net). The unrisked upside estimate of URR in the Kareem reservoir in the Al Amir prospect is 9.3MMBOE gross (3.7MMBOE net). The 2011 total upside (P10) recoverable resources estimate, to compare like with like areas, is 63.8MMBOE gross (25.5MMBOE net), which constitutes a 55.6% increase over the 2010 figure of 41.0MMBOE gross (16.4MMBOE net).
The increase in URR is due to a large increase in the estimated recovery factor from the Kareem reservoir which results from observation of well production performance data and the positive effect of the planned installation of gas production and water injection facilities, which are expected to be completed by the end of 2011.
Any additions from potential resources in the Lower Rudeis in the NW Gemsa area are excluded from the totals.
Drilling and Development History
Al Amir-1
Prior to Circle Oil farm-in, a 3D seismic survey and an initial well Al Amir-1 had been drilled. Al-Amir-1, drilled as a discovery, had been completed in April 2005 and flowed under test at 762 bopd with nitrogen lift.
Al Amir SE-1X
The partnership drilled its first exploration well in 2008, Al Amir SE-1X, discovering both oil and gas in the Kareem Formation sandstones, with the well testing 41° API oil and gas at sustained rates of 3,388 bopd and 4.25 MMscfd using a 64/64” choke.
The well was completed as a potential producer.
Al Amir – 1X
Al-Amir-1X, a re-entry and sidetrack designated Al Amir-1X, was drilled to better understand and appraise the original discovery (Al Amir-1) in the Block and in doing so, a second lower pay zone was identified in the South Gharib formation carbonates.
The upper zone was tested with a sustained rate of 416 bopd, 16° API and a sucker rod pump test was conducted in 2010 in order to evaluate the production capability of the well.
Those results are now being analysed, and in addition it is intended that the lower oil-bearing South Gharib zone will be tested as part of the process of bringing the well into commercial production.
Al Amir SE-2X
In January 2009, the Al Amir SE-2X appraisal well confirmed commercial oil in the Kareem Formation.
The lower (Rahmi) some 42 feet thick, tested 41° API oil and gas with sustained average rates of 5785 bopd and 7.8 MMscfd using a 64/64” choke.
The upper pay zone (Shagar), with 22 feet of net pay will be tested at a later date.
Al Amir and Geyad Development Leases
Circle Oil and their partners applied for and received the Declaration of Commerciality from EGPC for the Al Amir and Geyad Development Leases in 2009, and submitted early development plans to bring discoveries online within the most expedient time period.
The partners also applied for and were granted a 36 km sq development and production lease over the Al Amir and Al Amir SE area. An early stage production system was put in place with production commencing at the end of February 2009. The production level in July 2009 from the Al Amir SE-1X and -2X wells was 2,200 bopd.
Shebab -1
A further exploration well, Shebab-1 was completed at the end of February 2009. This logged potential hydrocarbon-bearing zones and good reservoir potential.
This will be drilled for confirmation and testing in a future well in an updip position.
Geyad-1
In the third week of May 2009, another successful discovery was confirmed in the Kareem Formation sandstones, testing 40° API oil and gas at a sustained average combined rate from the two pay zones (Shagar and Rahmi) of 2,809 bopd and 3.04 MMscfd using a 64/64” choke.
The total calculated net thickness of the two pay zones is approximately 29 feet.
Al Amir SE-3X
In August 2009, Al Amir SE-3X was successfully tested and confirmed 40º API oil and gas in the Kareem Shagar Formation at a sustained average rate from 35 feet net pay of 2,395 bopd and 2.2 MMscfd using a 32/64" choke. A short term test with a 64/64" achieved a rate of 4,938 standard bopd and 8 MMscfd.
Al Amir SE-4X
Appraisal well Al Amir SE-4X tested 42° API oil and gas from the Kareem Rahmi Formation at a sustained average rate of 5,500 bopd and 7.159 MMscfd using a 64/64" choke in October 2009.
Log result based interpretations indicate that the total net thickness of the Shagar and Rahmi pay zones is approximately 69 feet.
The upper pay zone identified in the Kareem Shagar Sandstone is 23 feet thick and will be tested at a later date. The lower tested pay zone in the Kareem Rahmi Sandstone is 46 feet thick.
Geyad -2X
In October 2009, Geyad-2X was drilled and encountered water-bearing Kareem sandstones, and the well was sidetracked updip as Geyad-2X ST1 and successfully completed as a producer in January 2010.
The well under test flowed 42° API oil from the Kareem Formation Shagar Sandstones at sustained average rates of 3,850 bopd and 4.62 MMscfd of gas using a 48/64" choke from the upper of two identified pay zones. Log result interpretations indicate that the total net thickness of the two pay zones is approximately 32 feet.
Both wells were hooked up and put into production; Geyad-1X in August 2009 and the second well in January 2010.
Al Amir SE-5X
In March 2010, the Al Amir SE-5X well encountered the Kareem Formation Sandstones, which under test flowed 42° API oil at sustained average rates of 6,150 bopd and 6.9 MMscfd of gas using a 64/64" choke and at 4,300 bopd and 4.9 MMscfd of gas using a 48/64" choke from the upper (Shagar) of the two identified pay zones.
Log result interpretations indicate that the total net thickness of the two pay zones is approximately 36.5 feet.
The upper pay zone identified in the Kareem Shagar Sandstone is 19 feet thick. The lower pay zone in the Kareem Rahmi Sandstone is 17.5 feet.
Al-Amir SE-6X
The Al Amir SE-6X down-dip flank appraisal well successfully tested a hydrocarbon bearing interval over a pay zone of approximately 8 feet in thickness in the Lower Rudeis within the interval 13,776 to 13,784 feet.
A drill stem test flowed 45° API oil at a sustained average rate of 66 bopd and 1.1mmscf/d of gas using a 32/64" choke. The well was shut in for pressure build-up and plugged back to a depth of 10,520 feet.
The well test confirmed the presence of hydrocarbon resources in the Lower Rudeis interval and whilst the Lower Rudeis Formation will not produce at this time, the results of the perforation and testing indicate potential for future work programmes.
In July 2010, the Kareem Shagar Formation Sandstones under test flowed 42° API oil at a sustained average rate of 4,626 bopd and 3.91 MMscfd of gas using a 48/64" choke from the upper of the two identified pay zones. Log result interpretations indicate that the total net thickness of the tested Shagar pay zone is 30 feet and remaining potential pay in the lower sands of the Rahmi is 24 feet.
Al Ola -1X
Al Ola-1X is an exploration/appraisal well drilled in September 2010, which has proved the southern extension of the Kareem Shagar and Rahmi sands oil accumulation and extended the Lower Rudeis productive interval 3.6km to the south east of the Al Amir SE 6X discovery well.
The Kareem Rahmi Formation Sandstones flowed 42° API oil at an average rate of 1,575 bopd and 1.65 MMscfd of gas using a 32/64" choke from the lower of the two identified pay zones in the interval 9,782ft MD to 9,802ft MD.
The testing of the Lower Rudeis in the exploration/appraisal well Al Ola-1X was conducted over two hydrocarbon bearing intervals from 13,425-13,460 ft MD and 13,510-13,540 ft MD, but proved to be inconclusive due to mechanical problems.
Al-Amir SE-7X
The Al Amir SE-7X water injector, located to the west of the Al Amir SE-4X well, started drilling on the 27th November 2010, and on 01 March 2011 was drilling ahead in the Upper Rudeis Formation at a depth of 11,620 ft MD.
The objective Kareem sands have been encountered between 10,664 to 10,852 ft MD and these have been successfully cased off. Kareem water injection testing will be completed once the secondary objective of the Lower Rudeis has been evaluated.
This well is planned to drill deeper to test the Lower Rudeis potential, previously identified in wells Al Amir SE-6 and Al Ola-1X. The planned TD of the well is at 16,750 ft MD.
The well has also encountered potential hydrocarbon zones in the shallower horizons of the South Gharib and Belayim formations that await further evaluation.
Geyad-3
Geyad-3, located to the south-east of the Geyad-1X ST well in the Geyad Development Lease, finished drilling in May 2011 and was drilled to 5,635 ft MD in the Upper Rudeis. The main objective for this well was to appraise and bring into production the oil bearing Shagar and Rahmi sandstones of the Kareem Formation.
The Shagar sands were encountered from 5,333 to 5,347 ft MD with 14 ft of net oil pay and were tested at a sustained rate of 1,316 bopd and 1.26 MMscf/d of gas on a 24/64" choke and the well will be completed for production.
The underlying Rahmi sands were encountered, but found to be of poor reservoir quality and were not tested.
A secondary objective of the Belayim sands in Geyad-3 well was also encountered with 5 ft of calculated net pay, but it was decided not to test this interval at the present time. The Geyad-3 well has proved up the South East extension of the field and added further confirmation of the field geometry.
Al-Amir SE8
Al-Amir SE-8X commenced drilling late May 2011 and is intended as the second water injector for the Al-Amir SE field.It finished drilling in July 2011 and is located to the south-west of the Al Amir SE-1X ST discovery well in the Al Amir Development Lease, was drilled to 10,750 ft MD in the Upper Rudeis. The main objective for this well was to appraise the Shagar and Rahmi sandstones of the Kareem Formation in a downdip location and to provide water injection to support oil production from the updip Al Amir SE field wells.The Shagar sands were encountered from 10,329 to 10,353 ft MD with 24 ft MD of net reservoir and up to 15% porosity.
The Rahmi sands were encountered from 10,404 to 10,432 ft MD with 8 ft MD of net reservoir and up to 10% porosity. Both sands were found to be water bearing, below the field oil-water contact. Interpretation of formation pressure test results from both sands indicates communication with the updip producers and good potential for successful water injection. The well has been completed as an injector in the Rahmi sands, with the option to add the Shagar injection under a rigless operation at a later date.
Geyad-5X
Geyad-5X, finished drilling at the end of August 2011, located to the south-west of the field and downdip of the Geyad-1X ST discovery well in the Geyad Development Lease. It was drilled to 7,350 ft MD in the Upper Rudeis. The main objective for this well was to appraise the Shagar and Rahmi sandstones of the Kareem Formation in a downdip location and to provide water injection to support oil production from the updip Geyad field wells.The Shagar sands were encountered with 15 ft MD of net reservoir, an average porosity of 14% and perforations made between 6,510 and 6,525 ft MD.
The Rahmi sands were encountered with 15 ft MD of net reservoir, an average of 13% porosity and perforations made between 6,583 and 6,899 ft MD. As expected, below the field oil-water contact both sands were found to be water bearing. The well has been completed as an injector.
Al Ola 2
Al Ola-2 is located in the south eastern part of the Al Amir SE field (AASE), down-dip and 850 m to the north-west of the Al Ola-1 production well and 1,810 m south south-east of the AASE-8 water injector well in the Al Amir Development Lease. The well was spudded on 1 September 2011 and drilled to 10,552 ft MD in the Upper Rudeis. The main objectives for this well were to appraise the Shagar and Rahmi sandstones of the Kareem Formation in a down-dip location and to evaluate the potential for water injection to support oil production from the updip AASE field wells. The Shagar sands were found to be oil bearing from 10,143 to 10,158 ft MD, with 15 ft MD of net pay, an average porosity of 13% and an average water saturation of 22%. The Rahmi sands were encountered with poor quality sands.
Although Al Ola-2 was initially planned as an injector, the presence of the oil column in the Shagar resulted in the decision to complete the well initially as a production well from the Shagar sands. Perforations were completed between 10,143 and 10,158 ft MD. The well has been connected to the production facilities and the Shagar sand flow tested at 2,825 bopd and 2.679 MMscfd using a 64/64" choke. This test flow rate was provided by the operator as part of a variable choke size testing programme to assess the productivity of the well. The Al Ola-2 production rate will be subject to operator control for field management purposes. Al Ola-2 remains shut in at this time (information correct 8th February 2012).
Geyad-4 Well (previously Geyad-D)
Geyad-4 was spudded on 26 October 2011 and is located on the northern flank of the Geyad field, updip of the Geyad-2XST producer. The well's objective was to appraise both the Shagar and Rahmi sands for production in that location. The well was successfully drilled to a total depth of 6,890 ft MD into the Upper Rudeis Formation. The well encountered 2.5 ft of possible pay in the shallow South Gharib heavy oil reservoir before encountering a fault and was sidetracked twice to the southwest, closer to Geyad-2XST.
The Rahmi zone was penetrated in the second sidetrack in Geyad-4ST2, 100 ft higher than in the Geyad-2XST well, thus allowing better access to the Rahmi oil reserves. The Rahmi zone was perforated in the interval 6,340-6,395 ft and flowed oil and gas on test at an average rate of 397 bopd and 0.76 MMscf/d respectively, on a 24/64" choke. The Geyad-4ST2 well has been placed on production.
AASE-10X Well
AASE-10X was spudded on 13 December 2011 and is located on the central western flank of the AASE field, down-dip of the AASE-4X producer. The well's objective was to appraise both the Shagar and Rahmi sands for injection/production in that location. The well was successfully drilled to a total depth of 10,450 ft MD into the Upper Rudeis Formation. The well encountered 34 ft of net pay in the Kareem Shagar sand and 31 ft in the underlying Rahmi sand with oil bearing sands present to the base of the reservoir. The Rahmi zone was perforated from 9,975 to 10,010 ft MD and testing is planned to be conducted shortly. The results will be announced in due course (as per announcement of 8th February 2012).
Following its productive lifespan, the Rahmi sands will be used for water injection. This injection will be targeted principally to support the Rahmi production from the nearby updip AASE-4X well.
AASE-11X Well
Following the successful completion of the AASE-10X well, the rig was mobilised to drill the appraisal well AASE-11X, located in the north western flank of the AASE field. The well was spudded on 5 February 2012.
Page update February 2012