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Afren Shares Up on Interim Mgt Statement
Posted on 17 May 2013. Tags: Afren, Ain Sifni, Barda Rash, Hunt Oil, Kurdistan, Kurra Chine, Simrit
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Shares in Afren have risen more than 5 percent since the publication of its Interim Management Statement on Thursday.
In the statement, the company gave the following update on its operations in Iraqi Kurdistan:
Barda Rash
As part of the phased development of the field, Afren initiated production operations in August 2012 producing its first cargo of sales specification oil to tank. Initial storage capacity limits during the early phases of start-up at the field led the Group to restrict flow-to-tank from the well. To date, approximately 18,800 barrels is held in storage at the field and first sales are expected shortly.
Afren has commenced Phase 2 operations on the field which will involve new wells to increase production capacity, evaluate new field areas and acquire modern log and core data to better understand and delineate the field. The Partners commenced drilling on the BR-5 well in March 2013 using the Romfor-23 drilling rig which is currently drilling ahead at around 6,200 ft. The BR-4 well will be drilled using the Viking I-10 rig and is expected to spud in May 2013. The wells will be drilled to test the Cretaceous, Jurassic and Triassic reservoirs identified in the previous wells drilled on the structure.
Ain Sifni
Testing of the Simrit-2 well is now complete with aggregate flow rates of 19,641 bopd achieved from the planned Drill Stem Test (DST) programme. The well is currently being completed for an Extended Well Test (EWT) in the Jurassic age, Mus/Adaiyah reservoirs. Produced crude is expected to be trucked to local markets.
The Simrit-3 well, exploring the eastern extent of the large scale Simrit anticline has reached a final maximum depth of 12,300 ft in the Triassic Kurra-Chine formation and has encountered hydrocarbon bearing intervals in the Cretaceous, Jurassic and Triassic reservoirs. A multi-zone testing programme will take place over the next three months to confirm the resource potential of the well.
Operator Hunt Oil is preparing to commence drilling operations on the Maqlub-1 well in May 2013 on the high potential Maqlub structure followed by the Maqlub-2 appraisal well. The Maqlub structure is located adjacent to the Barda Rash PSC and will be testing the Cretaceous, Jurassic and Triassic reservoirs.
Commenting on today’s IMS, Osman Shahenshah (pictured), Chief Executive of Afren plc, said:
“Afren continues to deliver strong production from our greenfield developments offshore Nigeria. Following the successful start to our 2013 E&A programme on Okwok, offshore Nigeria, and Simrit in the Kurdistan region of Iraq, we are currently drilling the West African Transform margin on OPL310 offshore Nigeria.
“The Group remains in a strong financial position supported by a growing production base, to optimally explore, appraise and develop our high quality portfolio and continue to create significant value for our shareholders.“
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