Petroceltic International, an upstream oil and gas exploration company focused on North Africa, the Mediterranean and the Black Sea regions, has spudded two wells: Shakrok-1, the first well in its drilling campaign in the Kurdistan Region of Iraq and Cobalcescu South, part of its planned multi-well drilling campaign, offshore Romania.
In July 2011 Petroceltic announced that Petroceltic Kurdistan Limited (“Petroceltic Kurdistan”) had entered as a joint venture partner into Production Sharing Contracts (“PSCs”) with the Kurdistan Regional Government of Iraq (“KRG”) in respect of the Shakrok and Dinarta exploration blocks (“Dinarta” and “Shakrok”) in the central northern area of Kurdistan. The blocks are held in partnership with Hess Middle East New Ventures Ltd. (“Hess”) and the KRG which have a 20% carried interest in each PSC. Petroceltic Kurdistan holds a 16% participating interest (20% paying interest) with Hess holding the remaining 64% participating interest (80% paying interest) in the PSCs.
Since July 2011, a substantial technical work program has been carried out on these blocks, including multiple fieldwork and rock sampling campaigns, structural modelling and ongoing 2D seismic acquisition, processing and interpretation programs. In addition, preparations for a drilling campaign have been progressing, in parallel with this sub-surface work, with the selection of drilling locations, well design work, the execution of permitting procedures and the contracting and mobilization of two rigs into the
The Shakrok-1 is targeting Jurassic and Triassic fractured carbonate reservoirs which over recent years have yielded a number of major discoveries along trend, including Shaikan, Swara Tika, Atrush and Bina Bawi. The Shakrok Prospect is a broad four-way dip closed anticlinal structure mapped at surface and in the sub-surface. The prospect contains multiple stacked reservoir targets of Jurassic and Triassic limestones and dolomites sealed by interbedded evaporites and shales. In August 2012 De Golyer and Mc Naughton estimated the total Shakrok prospect to have consolidated P50 resource potential of 650 million barrels of recoverable oil and a geological chance of success (Pg) of 24.5%.
The Shakrok-1 well has a proposed Total Depth (“TD”) of circa 3000m and is estimated to take approximately 150 days to drill to the target TD.
In October 2011, Petroceltic, via its wholly owned subsidiary Melrose Resources Romania BV, was awarded a 40% working interest in two exploration concessions offshore Romania, namely, Est Cobalcescu (Block EX-28) and Muridava (Block EX-27). Both blocks are operated by Petroceltic. The Est Cobalcescu licence, which contains the Cobalcescu South prospect, is held in partnership with Beach Petroleum SRL (30%) and Petromar Resources SA (30%).
Following award of the licences, Petroceltic has carried out a substantial work program, including the acquisition and processing of a high quality 3D seismic survey totalling 1930 km2. Ongoing structural, stratigraphic and attribute interpretation of the seismic dataset has yielded a significant prospect inventory composed primarily of biogenic gas prospects, with some potential oil prospects also identified. In parallel with the sub-surface work, preparations for a multi-well drilling campaign have progressed with the selection of drilling locations, well planning, permitting and site survey work, and the contracting of the GSP Prometeu jack-up drill rig.
The Cobalcescu South well is located approximately 170 kms northeast of Constanta, in the southwest corner of Block EX-28 in a water depth of 90 metres.
Cobalcescu South has been designed with an ‘S’ shaped drilling trajectory to facilitate the optimal penetration of two primary reservoir targets in the Upper Pontian and Lower Pontian sandstone sections within the Miocene. Additional upside potential is present in a number of secondary targets which have been identified within the Miocene formation. Petroceltic’s assessment of Cobalcescu South indicates the following P50 gross prospective resource and Pg for the primary reservoir targets:
Brian O’Cathain, Petroceltic’s Chief Executive, said, “The spudding of our first wells in the Kurdistan Region of Iraq and Romania, heralds an exciting period for Petroceltic. The Shakrok-1 well in Kurdistan is the first well in a multi-well campaign planned for this prolific petroleum province where a number of large exploration targets have been identified. Shakrok has multiple Jurassic and Triassic oil reservoir targets each with substantial resource potential. Recent regional drilling results also suggest that there could be substantial upside resource potential beyond the currently mapped structural closure. In Romania, the 3D seismic survey acquired in 2012 has confirmed the presence of a significant gas prospect inventory in a number of different hydrocarbon plays. Cobalcescu South is the first well in the campaign and it will be immediately followed by an exploration well on the adjacent Muridava licence.”
