Canada’s TransGlobe Energy Corporation announced its financial and operating results for the three-month period, ending March 31, 2002, in which daily production totaled 1,487 barrels of oil equivalent. During the first quarter of the year 2002, the company had completed the expansion of the Tasour Central Production Facility, Block 32, in the Republic of Yemen and entered second exploration period in Block S-1.
TransGlobe maintains a 13.8 percent working interest in Block 32. The Asswairy #1 well commenced drilling in December 2001 and reached total depth in early 2002. Although several horizons with oil shows were tested, no hydrocarbons were recovered, therefore the well was plugged and abandoned.
The original 2002 Block 32 joint-venture budget and work program included the drilling of at least one additional exploration well. The Block 32 joint venture group reviewed the proposed drilling plans for the balance of 2002 and are considering expanding the 2002 drilling program to include two firm wells and two contingent wells.
Three of the eleven seismically identified prospects on the block are ready to be drilled. In addition, depending upon the results of the Tasour reservoir modeling and field performance, one of the wells could be a development well at Tasour. The start of drilling has been scheduled to commence in September/October to allow sufficient time to procure the necessary wellheads, production casing and drilling materials for the expanded drilling plan.
As for Yemen’s Block S-1, in which the company maintains a 25 percent working interest, the first exploration period ended on March 28, 2002 and the Block S-1 joint venture group elected to proceed with a second exploration period of two and a half years. The Al-Naeem #2 well drilled in 2000 has pre-qualified as a second exploration period commitment well.
The 2001 3-D seismic survey has also qualified as a second exploration period commitment. Two additional wells are required to satisfy the balance of the second exploration period commitments. Upon entering the second exploration period, a mandatory 25 percent relinquishment reduced the area to 3,363 square kilometers. The relinquished lands were not considered prospective.
The 2001 3-D seismic program, evaluated a trend of Alif and Lam prospects identified on existing 2-D seismic data. The trend extends from the adjacent Jannah Hunt, Dhahab and Al-Nasr oil fields southeast to the Shell discovery at Al-Nagyah. The Dhahab and Al-Nasr fields are currently producing in excess of 40,000 Bopd. Approximately 400 square kilometers of additional 3-D seismic data on the adjacent blocks—including the Dhahab and Al-Nasr fields—was acquired through a data trade with Jannah Hunt and Occidental Petroleum.
Three new exploration wells and an appraisal well on the Harmel discovery are planned for the second half of 2002. The three exploration locations will be finalized in early June. The proposed appraisal well at Harmel #2 has been designed to test and evaluate the shallow oil zones encountered in Harmel #1. A pilot project is planned to complete and equip both the Harmel #1 and #2 for longer-term production to determine the feasibility of a full-scale commercial development.
Production from Tasour averaged 9,380 Bopd (1,296 Bopd to TransGlobe) during the first quarter of 2002. The production was curtailed during the quarter by fluid handling capacity, pump changes and facility shut downs while modifications were carried out at the Tasour facility. Production has increased to 11,000-12,000 Bopd (1,500-1,650 Bopd to TransGlobe) since the facility expansion was completed in late April.
The average oil price for the company's production in Yemen for the first quarter 2002 was $21.19 per barrel compared to $22.27 in 2001. Oil produced from the Tasour field in Yemen is marketed by Nexen Marketing International Ltd. and the oil price is based on a Brent price less a quality/transportation differential between the Brent blend and the Yemen Masila crude oil blend. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
