Two Important Wells
On 12 October 2016, DNO reported that it had spudded the Peshkabir 2 appraisal well on the Zagros Foldbelt Basin Tawke block in the Kurdistan Region of Iraq. It was expected to be completed by the end of the year (2016) and, if successful, the Peshkabir field can be quickly brought on production using existing infrastructure.
The high-impact well has been located to appraise the Jurassic discovery up-dip from the Peshkabir 1 well location on the western part of the Tawke PSC area, in addition to testing additional prospectivity in the Cretaceous. This structure is a high-amplitude anticline, which forms a mountain range at the surface, with shallow layers outcropping to the surface on the flanks of the structure.
Having already submitted a Notice of Discovery and Declaration of Commerciality to the Kurdistan Regional Government (KRG), it is understood that DNO submitted a Field Development Plan for the Peshkabir 1 oil discovery in October 2013. Designed to target a large undrilled feature to the west of the Tawke Field, Peshkabir 1 reached a final TD of 4,092m in April 2012 and encountered oil shows in Cretaceous, Jurassic and Triassic intervals. Six zones were tested, with the Jurassic Sargelu Formation flowing API 27-29° oil and water at varying rates of oil and water cut, while the remaining five zones (Triassic Kurra Chine ‘A’ and ‘B’ intervals and Cretaceous Mushora, Quamchuqa and Shiranish intervals) produced formation water.
The recent acquisition of 200 km2 3D seismic over the discovery area has significantly improved imaging of the northern and southern flanks of the structure, with early interpretations indicating significant bulk volume upside potential, with formations below the OWC possibly offering additional up-dip prospectivity, and confirming that Peshkabir 1 was drilled at structural closure.
DNO Iraq AS holds a 55% interest in the Tawke block and is partnered by Genel Energy International Ltd (25%) and KRG (20%).
Meanwhile, in the far south of the country Kuwait Energy reported in mid October 2016 that its Faihaa 3 appraisal/development well on Block 9, in the Zagros Foredeep Basin, was spudded in August 2016. The well is the second of a two-well appraisal program to the Faihaa 1 oil discovery, located to the north of Faihaa 3, where Kuwait Energy announced in October 2015 that oil production had commenced after fast-track development, with output of about 5,000 bopd through a 32/64” choke. It was also announced in October 2016 that production had started at Faihaa 2, located in the north-western corner of Block 9, and that the well is now producing at a stabilized rate of 5,600 bopd.
The oil is reservoired in the Cretaceous Yamama Formation at a depth of around 4,000m and also in the shallower Cretaceous Mishrif Formation.
The exploration, development and production service contract for the block, which is located in the province of Basra, was awarded in Iraq’s Fourth Licensing Round with an effective date of 3 February 2013, and has an initial five-year exploration period. Kuwait Energy Iraq Ltd holds a 60% interest and is partnered by Dragon Oil Holdings Ltd (30%) and Egyptian General Petroleum Corp (EGPC) (10%), the latter having formally farmed-in at the end of September 2015, with the asset becoming the Egyptian national oil company’s first ever international investment
