Shaikan-1 discovery well
The Shaikan discovery was announced on 6 August 2009 with the Shaikan-1 well achieving a total depth of 2,950 metres through multiple target horizons in Cretaceous, Jurassic and Triassic formations and discovering over 1,000 metres of oil column and over 200 metres of net pay. Following successful retesting of Shaikan-1 in July 2010, the well was completed as a first Jurassic producer.
Shaikan Extended Well Test (“EWT”) facilities were completed in September 2010 with test production from Shaikan-1 commencing during October 2010 with a net entitlement to oil sales of 54,201 barrels to March 2011. The Company awaits guidance from the Kurdistan Regional Government on further oil sales.
Shaikan-2 appraisal well
Shaikan-2 deep appraisal well spudded on 1 December 2010 with a successful well test completed in March 2011, indicating that rates of up to 10,000 barrels of oil per day (“bopd”) can be achieved. Shaikan-2 tested 26 degree API oil in the first Jurassic zone encountered at a stabilised rate of 8,064 bopd.
Shaikan-3 appraisal well
Shaikan-3 shallow appraisal well spudded on 2 September 2010 and was completed as a second Jurassic producer in January 2011. Successful acid treatment of the Shaikan-1 and Shaikan-3 wells in early 2011 indicates a combined production rate of up to 20,000 bopd.
Both Shaikan-1 and Shaikan-3 are tied to the EWT facilities, which are being upgraded to meet their greater well capability and increased storage requirements, and to process oil to export specification. In preparation for higher production volumes and long-term exports, the Company launched an engineering study on a pipeline route to the main Kirkuk-Ceyhan oil export line.
Shaikan-4 appraisal well
Shaikan-4 deep appraisal well spudded on 27 May 2011 using the Discoverer 4 rig. The well is targeted to drill to the top of the Permian to reach the planned total depth of approximately 3,760 meters.
Further appraisal wells
The location for the Shaikan-5 appraisal well has been completed while the Shaikan-6 and 7 appraisal wells are contingent.
