Dragon Oil (DGO) issued the following drilling update in respect of its interests in Blocks 35 (10%), 49 (up to 10%) and R2 (10%) in the Republic of Yemen.
Block 49
Exploration well West Ghobata-1 spudded on 24 October 2007 and reached a total depth of 2,301 metres in Basement rocks. Oil shows were encountered in Qishn Clastics, Sabatayn Dolomite, and Madbi Dolomite. The total tested light oil rate was approximately 40 barrels of oil per day. West Ghobata-1 is still under evaluation.
Exploration well Dhulai’h-1 on prospect Balharak North spudded on 17 December 2007 and reached a total depth of 1,570 metres in Basement rocks. Oil and gas shows were encountered in Qishn sandstones, however, testing operations did not produce any hydrocarbons. The well was plugged and abandoned.
Block R2
Exploration well Daw’an South-1 spudded on 30 November 2007 and reached a total depth of 1,557 metres in Basement rocks. Daw’an South-1 had only very slight oil shows and was declared dry. The well has been plugged and abandoned.
Exploration well Tasilah West-1 spudded on 30 December 2007 and reached a total depth of 1,399 metres in Basement rocks. Oil shows were present in weathered zone of basement and in fractured basement, however, the test on basement revealed only water. The well has been plugged and abandoned, and the rig has been released.
Block 35
Exploration drilling on the Qabr Hood and SW Hood prospects is expected to commence later this year. The exploration period for Block 35 can be extended until February 2010.
Hussain M. Sultan, Chairman and CEO of Dragon Oil, commented:
“While we are naturally disappointed with the overall results from the exploration drilling programme in our non-operated acreage in Yemen, we do take some encouragement from the West Ghobata-1 outcome and from the timely and efficient execution of the programme, which was completed within budget. We are awaiting final government and partner approvals on our participation in these Blocks as per the PSA. The management team will continue to seek and assess prospective acquisitions both within Yemen and internationally to diversify Dragon Oil’s portfolio further.”
Source: Dragon Oil
