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production & exploration rep for the 2nd half of j

  1. 161 Posts.
    Amity Oil Limited
    Level 2, 18 Richardson Street West Perth WA 6005
    PO Box 690 West Perth WA 6872
    Telephone: (08) 9324 2177 Facsimile: (08) 9324 1224 Email: [email protected] Website: www.amityoil.com.au
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    This report covers Amity's production and exploration activities for the last 16 days of July.
    Gas Processing Plant Stage 2 Upgrade
    Construction of the Stage 2 plant upgrade is almost complete and expected to be completed within the
    next few days. Completion will allow the Gocerler-5 well to begin production and processed gas
    output to increase. Present plant nominal capacity is 20 mmcfd of high quality, low dew-point gas. The
    upgrade will allow gas production to increase to approximately 24 mmcfd, with peak capacity up to
    30 mmcfd.
    The plant continues to operate reliably, with minimal downtime.
    The Gocerler gas processing plant is located on Thrace Joint Venture Area A and is operated by Amity.
    Turkish Gas & Condensate Sales
    Average daily sales of joint venture gas from the Gocerler Gas field in Western Turkey for the last 16
    days of July 2003 were 14.14 mmcfd (400,589 standard cubic metres per day) compared with 13.3
    mmcfd in the previous reported period. Condensate production for the last 16 days of July was 1128.5
    STbbls.
    New Customer Connections Continuing
    All 15 new factory customers are contracted and 14 are connected with branch lines. Those not yet
    taking gas are awaiting either their own factory pipe work to be completed or regulating and
    measuring stations to be delivered.
    Adatepe-1 and Cayirdere-1 Gas Discoveries
    The Thrace Joint Venture participants, Amity and TPAO, have approved work programs and budgets
    for the simultaneous, fast-track development of both the Adatepe and Cayirdere gas discoveries. Work
    on both developments is expected to start in a few weeks.
    Amity Oil Limited
    Level 2, 18 Richardson Street West Perth WA 6005
    PO Box 690 West Perth WA 6872
    Telephone: (08) 9324 2177 Facsimile: (08) 9324 1224 Email: [email protected] Website: www.amityoil.com.au
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    Adatepe
    The Adatepe gas discovery is located 6 kilometres east of the Joint Venture’s producing Gocerler gas
    field, in Turkey’s Thrace Basin.
    The development plan of the Adatepe discovery calls for the construction of a 16 kilometre, 8 inch
    diameter, high-pressure pipeline, to deliver gas directly to customers in the Cerkeskoy Industrial area.
    The capacity of the line will be up to 37 million cubic feet per day.
    Two appraisal/development wells are planned, with the first expected to start drilling within a few
    weeks. Further development wells and a second Osmancik Formation exploration well are planned for
    Spring, 2004.
    Production is planned to begin before severe winter conditions set in, in December. The plant will be
    modular, with an initial capacity of 10mmcfd.
    The budget for the initial Adatepe plant and pipeline is US$2 million (100%) and the two wells US$1.8
    million (100%).
    Amity will operate the Adatepe project.
    Cayirdere
    The Cayirdere gas discovery is located about 33 kilometres east of the Gocerler gas field.
    The gas is good quality, with low condensate content.
    TPAO will operate a two well appraisal/development well drilling program to start in a month.
    TPAO’s Cayirdere development plan is also aimed at achieving first commercial production before
    December 2003. A 9 kilometre, 6 inch diameter pipeline, with a capacity of 10 million cubic feet per
    day, is planned.
    The budget for the Cayirdere plant and pipeline is US$0.71 million (100%) and the two wells US$1.4
    million (100%).
    TPAO will operate the Cayirdere project.
    Amity will fund its 50% share of both developments from cash flow and existing working capital.”
    The objective of the fast track proposal is to have the field in production before the Northern winter.
    Yesiltepe-1 Exploration Well, Turkey
    Yesiltepe-1, Amity's fifth well in Turkey in 2003 had reached a depth of 1697 metres by 6 August and
    was drilling ahead to T.D.
    Intermediate casing was set and cemented at 822 metres, wireline log interpretation to 822 metres,
    indicates that the Upper Kizildere Formation contains a number of high porosity (20% to 25%)
    sandstones. Five thin zones of non-economic gas saturation occur in separate, generally water filled
    sandstones, from 635 metres to 822 metres. The best zone is one metre thick, with 48% gas saturation
    at the top of a 19 metre thick sandstone at 704 metres.
    Amity Oil Limited
    Level 2, 18 Richardson Street West Perth WA 6005
    PO Box 690 West Perth WA 6872
    Telephone: (08) 9324 2177 Facsimile: (08) 9324 1224 Email: [email protected] Website: www.amityoil.com.au
    3
    Gas shows were obtained from several sandstones in the target Kizildere Formation, from a depth of
    1,085 metres to 1,261 metres. After a strong gas show at 1,159 metres, the well kicked and in the
    following well control operation, gas was flared off for an hour, burning with an orange coloured flame,
    two to four metres high.
    Wireline logs were run from 817 metres to 1,356 metres. Log interpretation indicates two metres of net
    gas pay in 14 metres of gross gas pay in a sandstone between 1,109 metres and 1,123 metres. The
    low net to gross pay ratio is due to carbonate cementation of the coarse grained sandstone. Currently
    drilling interbedded marls, sandstones and shales in Lower Kizildere Formation.
    The well is testing a major onshore structural prospect near the Turkish Mediterranean coast, close to
    substantial gas markets and crude oil handling facilities.
    The prospect is a high relief anticline in Miocene age sediments, similar to those at Amity's Gocerler Gas
    Field.
    The well is programmed to drill to a total depth of about 2000 metres and is expected to take about
    45-55 days after experiencing problems testing the BOPs (Blowout Preventers).
    Amity has farmed out a 20% interest in the block of Exploration Licences, which include the well and
    now holds an 80% interest.
    Yuksekkoy-1 Exploration Well To Drill After Yesiltepe-1
    Amity has scheduled the drilling of the Yuksekkoy-1 wildcat exploration well immediately after the
    Yesiltepe-1 well.
    Yuksekkoy-1 is located in crop lands, 95 kilometres west of Yesiltepe-1, 25 kilometres south-west of the
    city of Adana (population 1.5 million) and 14 kilometres east of the city of Tarsus (population 300,000).
    The well is 5 kilometres from the Adana-Mersin freeway. Mersin is a major Mediterranean port city
    (population 800,000) with an extensive oil refining industry.
    Yuksekkoy-1 well is positioned to test at relatively shallow depth, a prominent domal structure, well
    defined by good quality 2D seismic, shot by Amity early this year.
    The dome is developed in Upper Miocene age sediments on the western on-shore flank of the Adana
    Basin, a major Upper Tertiary age sedimentary basin, straddling the Turkish Mediterranean coast. The
    Adana Basin is sparsely explored and has one producing oil field, located some 32 kilometres to the
    north of Yuksekkoy-1 and an undeveloped gas field, 21 kilometres to the east.
    The domal feature is believed to be a reefal complex, possibly of agal origin, overlain by salt and
    shales. Reefs can be prolific hydrocarbon producers if they have favourable reservoir characteristics.
    Salt is an excellent seal.
    The top of the primary reefal target is anticipated at 950 metres, with a secondary sandstone target at
    1,340 metres and proposed total depth of 1,500 metres.
    Based on seismic mapping and assuming reasonable reservoir characteristics, Amity has estimated
    Yuksekkoy has potential in-place oil resources of 30 million barrels, or 36 Billion cubic feet of gas in
    place.
    Amity Oil Limited
    Level 2, 18 Richardson Street West Perth WA 6005
    PO Box 690 West Perth WA 6872
    Telephone: (08) 9324 2177 Facsimile: (08) 9324 1224 Email: [email protected] Website: www.amityoil.com.au
    4
    The seismic survey shot by Amity early this year, together with reprocessed old seismic, has defined
    more than 16 drilling targets in Amity’s four licences in the Adana Basin.
    Amity holds a 90% interest in the block of four Exploration Licences which include the Yuksekkoy
    structure. Amity has farmed out a 10% interest in this licence block.
    Thrace Basin Exploration Well
    After the drilling of Yuksekkoy-1, the drilling rig is scheduled to move immediately to the Thrace Basin to
    drill in Amity’s 100% held Exploration Licence 3599.
    The well will test a robust and shallow structural closure, well defined by high quality 2D seismic, shot by
    Amity late last year. The structure is up-dip of an old well with strong gas shows and possible bypassed
    gas pay, interpreted from limited wireline log data. The structure has a coincident seismic
    amplitude anomaly, suggesting the presence of gas. More details will be released closer to drilling
    date.
    This is an attractive and relatively low risk exploration target, which can be drilled at low cost, close to
    a regional city of about 500,000 people and large industrial areas.
    The Exploration Licence has several other attractive drilling targets, all with seismic amplitude anomalies.
    Considering the low cost and high quality of the prospect, Amity intends to retain a 100% interest
    through the drilling of at least this first prospect in the Exploration Licence.
    Whicher Range-5 Well to Spud in September
    Awaiting arrival of Rig 28 from Indonesia.
    W hicher Range Gas Field - Background
    The Whicher Range Gas Field is a major undeveloped tight gas field, located onshore, some 22
    kilometres south of Busselton in Western Australia. The field has estimated gas in place of 4 trillion cubic
    feet (more than 4,000 Petajoules) in Permian age sandstone reservoirs.
    The favourable location of the field, about 35 kilometres south-west of the southern end of the main gas
    pipeline from the North-West Shelf, means it can compete on price and transport tariff with gas from
    the North-West-Shelf. A gas supply from Whicher Range would be strategically advantageous for
    Perth and the South-West, by reducing dependence on the long single pipeline from the North-West
    Shelf.
    Four wells have been drilled on the Whicher Range Gas Field and all recovered gas at low rates from
    many tested intervals. Two wells, Whicher Range-1 and 4, are presently capable of producing at
    about one mmcfd (1.1 terajoules/day) and three mmcfd (3.2 terajoules/day), respectively. The gas is
    clean and of high quality.
    Much has been learned from the existing wells about drilling, completion and reservoir stimulation
    practices. Water is particularly damaging to the reservoirs.
    In 1999, Amity successfully increased gas flow in the Whicher Range-4 well, from about one mmcfd (1.1
    terajoules/day) to about 3 mmcfd (3.2 terajoules/day), with a pilot liquid carbon dioxide frac (fracture
    stimulation operation). This was the first frac to increase gas flow. All 12 previous fracs used water and
    as a result, decreased gas flow due to reservoir damage.
    The Whicher Range-5 well has been designed with the benefit of this knowledge. The gas reservoirs
    will be drilled under-balanced with air to avoid reservoir damage and to attempt to obtain commercial
    gas flow rates (greater than 5 mmcfd) without reservoir stimulation. If reservoir stimulation is required,
    a full scale liquid carbon dioxide frac will be applied.
    The well is programmed to be drilled in 50 days. More details of the drilling program will be provided
    closer to spud date.
    Joint Venture Interests
    Amity 47.957% (operator),
    Korea National Oil Corporation 20.000%
    Seoul City Gas Company Limited 15.000% .
    Geopetro Resources Company 17.043%”
    Information
    For more information, images and updates, please refer to Amity's website at www.amityoil.com.au.
 
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