Afren Strikes Significant Oil in Kurdistan

PUBLISHED: 18 Apr 2012 @ 01:39 | Comments (0) | More info about Kenneth G. Mondero

Upstream oil and gas explorer Afren plc (LSE:AFR) announced it has encountered “significant oil accumulation” in its Ain Sifni asset in the Kurdistan Autonomous Region of Iraq, sending shares up 10% in early morning trading to 148 pence per share.

Basing the results from drilling, wireline logs, and sidewall core sampling, the Simrit-2 exploration well encountered an estimated 409 metres of net oil pay, 312 metres of which indicated light oil, at a depth of 3,700 metres with no oil water contact.

The Simrit-2 exploration well was drilled to test the extent of the Simrit anticline in the western portion of the licence. Afren plans to continue drilling a further 100 metres to measure the extent of the prospect.

“As there are continuing strong hydrocarbon shows to the current depth of 3700 m, Afren and operator Hunt Oil Middle East plan to run casing at the current depth and continue drilling to a new total depth of circa 3,800 m to test additional zones of prospectivity,” Afren said in a statement.

Afren plans to commence drilling a third well, to test the eastern border of the play, after a comprehensive well testing is completed on the reservoir intervals of the Simrit-2 well.

CEO Comments

Osman Shahenshah, Chief Executive Officer of Afren commented:

“The successful result of the Simrit-2 exploration well represents a second major exploration success for Afren in 2012, following on from the Okoro East discovery offshore south east Nigeria. The scale of the oil column that has been intersected suggests that the Simrit structure and surrounding prospects elsewhere on the Ain Sifni PSC have the potential to be transformational for Afren.”

Company Spotlight

Afren plc holds 20% interest in the Ain Sifni Production Sharing Contract. The oil field is located 70 kilometres north west of Erbil, the capital of the Kurdistan Autonomous Region.

Afren is listed on the main board of the London Stock Exchange and part of the FTSE 250 Index.

References
↑ Ain Sifni Background
↑ Afren Share Information

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