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As Kurdistan oil booms, deal-making accelerates
Workers at the Gulf Keystone Petroleum production facility at Shaikan in Iraq's Kurdistan region. (SEBASTIAN MEYER/Metrography/Iraq Oil Report)
By Patrick Osgood, Ben Lando and Ben Van Heuvelen of Iraq Oil Report
Published December 3, 2012
ERBIL - A decade after Iraqi Kurdish leaders signed their first oil contract, the semi-autonomous Kurdistan Regional Government (KRG) is poised to play host to what could be the industry's biggest asset bazaar ever.
In the latest developments, announced late Friday night, Abu Dhabi's national oil company TAQA bought a stake in the Atrush exploration block from American independent Aspect Energy. TAQA also sold its 20 percent share of the KRG-focused Canadian firm Western Zagros.
There is more deal...
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UPDATE 1-Abu Dhabi's TAQA buys 53.2 pct stake in Iraqi Kurdish oil block
Sat, Dec 01 01:09 AM EST
ABU DHABI, Dec 1 (Reuters) - Abu Dhabi National Energy Co (TAQA) has bought a 53.2 percent operating interest in an oil block in Iraqi Kurdistan from General Exploration Partners (GEP), the company said in a statement.
GEP is a joint venture between privately-held Aspect Energy, which owns a 66.5 percent interest, and a subsidiary of Canadian group ShaMaran Petroleum.
"This entry into a pure exploration play demonstrates how TAQA is leveraging its experience as an operator of complex oil and gas assets," said TAQA CEO Carl Sheldon in the statement.
Earlier this year, TAQA bought a 50 percent stake in Kurdish power plant Chamchamal. TAQA said on Friday it had sold its 19.9 percent share in WesternZagros Resources, which has contracts for two blocks in the Iraqi Kurdish region.
GEP, which has an 80 percent stake in the Atrush block in Kurdistan, said in September it had found a combined flow rate of 42,200 barrels of oil per day. The other 20 percent of the block is held by a subsidiary of Marathon Oil Corp.
An autonomous region since 1991, Iraqi Kurdistan is often touted as one of the final frontiers for onshore oil exploration and has signed deals with foreign majors such as Exxon Mobil , Chevron and Total.
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UPDATE 1-TAQA, GIB to price bonds in late-year Gulf flurry
Tue, Dec 04 04:38 AM EST
* Abu Dhabi's TAQA and Bahrain-based GIB to issue this wk
* TAQA eyeing 2-tranche deal, in full expansion mode
* GIB plans 5-yr bond, size to be determined
* Borrowers seek final issuance windows before yr-end (Adds detail, background)
DUBAI, Dec 4 (Reuters) - Abu Dhabi National Energy Co (TAQA) is preparing to price a two-tranche dollar-denominated bond issue, maturing 2018 and 2023, after roadshows conclude on Tuesday, arranging banks said.
TAQA, which is 75-percent owned by the Abu Dhabi government, joins Gulf International Bank in pricing new issues as regional borrowers line up to get deals away before investors close books for the year.
TAQA, which is buying a number of BP's North Sea assets, said last week it had hired banks to arrange investor meetings ahead of a benchmark-sized issue, typically at least $500 million.
TAQA is a frequent bond issuer and familiar to international investors, in part due to its global profile. At the end of the third quarter, it had a cash position of 3.5 billion dirhams ($950 million) as well as 14.8 billion dirhams ($4 billion) worth of unused credit facilities.
The company has $1.75 billion in bond maturities next year. It last tapped markets for a dollar-denominated issue last December with a $1.5 billion two-tranche bond to refinance debt.
TAQA announced last week that it bought a 53.2-percent operating interest in an oil block in Iraqi Kurdistan from General Exploration Partners and earlier this year bought a 50 percent stake in Kurdish power plant Chamchamal.
BNP Paribas, Citigroup, HSBC Holdings , National Bank of Abu Dhabi and Standard Chartered are mandated to arrange the deal.
SAUDI INTEREST SEEN FOR GIB
Bahrain-based Gulf International Bank is a less familiar name in the global fixed income community, although it too benefits from strong state-ownership.
GIB released early price talk for a five-year bond on Tuesday at a spread of 165 to 175 basis points over midswaps. The issue size is yet to be determined, and it will be GIB's first dollar deal in seven years, according to IFR Markets.
GIB is 97.2-percent owned by the Saudi government, a level of risk international investors are likely to be more comfortable with.
"GIB will see more Saudi interest, but interest for TAQA will be global," a regional fixed income trader said, declining to be identified.
Earlier this year, GIB conducted investor meetings in Malaysia for a possible Islamic bond, or sukuk, under a 3.5 billion ringgit programme but no issue has yet materialised.
Other shareholders are Gulf sovereign wealth funds including Kuwait Investment Authority and Qatar Holding.
GIB picked itself, JP Morgan Chase Inc, National Bank of Abu Dhabi, Barclays Plc, Standard Chartered Plc and Societe Generale to arrange the deal.
The Kingdom of Morocco also concludes roadshows this week for a debut dollar issue.
Last week, International Petroleum Investment Co (IPIC) priced a $2.9 billion equivalent dual-currency bond. Gulf Investment Corp also priced a $500 million five-year bond in late November, its first dollar deal since 2005. (Reporting by Mala Pancholia and Rachna Uppal; Editing by Amran Abocar)
Showing posts with label TAQA; WesternZagros Resources; Sargala-1; Mil Qasim-1; Kurdamir-2; Talisman. Show all posts
Showing posts with label TAQA; WesternZagros Resources; Sargala-1; Mil Qasim-1; Kurdamir-2; Talisman. Show all posts
Sunday, December 02, 2012
Thursday, February 16, 2012
WesternZagros targets multi-billion barrel oil resources in Kurdistan, starts production
10:04 am by Richard Badauskas
WesternZagros targets multi-billion barrel oil resources in Kurdistan, starts production
WesternZagros (CVE:WZR) is a Canadian oil and gas explorer that is successfully exploring and developing crude oil and natural gas resources in the Kurdistan region of Iraq.
Results generated by the drilling of Sarqala-1 in the Garmian Block, and Kurdamir-1 on the Kurdamir Block, indicate that the two Blocks cover multiple prospects that have the potential to develop into giant oil fields that could host over 3.6 billion barrels of oil equivalent (BOE) of independently audited prospective resources.
These excellent results are allowing WesternZagros to transition from being a pure exploration company into an explorer and production company that is producing over 5,000 bbl/d from the Sarqala-1 oil discovery and targeting over 1 billion BOE in the next five months including the Sarqala-1 oil discovery, and drilling of Mil Qasim, and Kurdamir-2.
The Kurdamir and Garmain Blocks cover 2,120 square kilometres, and are among the largest exploration areas that were granted by the Kurdistan Regional Government to any entity.
WesternZagros is the operator and holds a 40% interest in the Garmian Contract Area that covers 1,780 square kilometres; and holds a 40% interest in the Kurdamir Contract Area that covers 340 square kilometres and has Talisman Energy (NYSE:TLM) (TSE:TLM) as operator. The Kurdistan Regional Government retains a 20% working interest in both Blocks.
The Production Sharing Contracts require the operators and partners to carry all development costs and make payment of a 10% royalty from total crude production, with up to 45% of the remaining oil available for cost recovery. The profit on the remaining oil is split between the parties on a sliding scale from 16% to 35%, and is based on a formula that assesses revenue over cost. The PSCs negotiated on the Kurdamir and Garmian Blocks carry among the most favorable terms when compared to other PSCs negotiated with the Kurdish Regional Government.
Sarqala-1 was drilled and completed in the second calendar quarter of 2011 at a total cost of $20 to $25 million, which included casing repair operations, sidetracking and testing operations.
The well was drilled in the middle of the Sarqala structure that extends over a distance of 15 kilometres, and was sited on the flank of an Upper Fars Sandstone reservoir that is located above the crest of deeper Jeribe Dolo-Limestone, Oligocene, Eocene and Cretaceous reservoirs. It was penetrated through the Upper Fars reservoir and crest of the Jeribe and Oligocene reservoir, terminating below a prospective oil formation at 4,357 metres.
A sidetrack was completed through the Jeribe Formation, and tested at over 9,000 bopd that flowed 40°API oil, with no stimulation or water recovered. An independent audit completed by Sproule Associates estimated Gross Unrisked Resources for total mean oil of 24 MMbbls, with gas of 31 MMBOE within Jeribe.
Total mean oil for the Jeribe and Upper Dhiban, along with Oligocene, Eocene, and Cretaceous reservoirs, on a Gross Unrisked Resource basis, was estimated at 296 MMbbls for oil, and at 463 MMBOE with gas.
Sarqala-1 commenced oil production through an extended well testing in mid October and produced 220,000 barrels of oil by the end of the 2011 calendar year. Sarqala-1 was producing at a rate of 4,000 barrels per day in December and is projected to produce at an average rate of 5,000 barrels per day through the first half of calendar 2012. The company is also sourcing and installing permanent facilities to increase production beyond 5,000 barrels a day, and to have a gas conservation solution in place to deal with the natural gas.
Western Zagros is contractually committed to provide 100% of the exploration and development costs on the Garmian Block and Sarqala-1, and is entitled to collect 100% of the current oil revenues, which may total as much as $60 per barrel, or approximately $10 million per month until a third party participant is assigned on the Garmian Block.
Mil Quasim-1 was recently drilled and completed on the crest of the Upper Fars reservoir, located about 3 kilometres from Sarqala-1. The well was completed at a final depth of 2,425 metres and an open hole test conducted in the lowermost part of the wellbore successfully flowed oil to surface with no water. Further testing is underway in the Upper Fars, with final results due for release on completion of testing.
The well is estimated to cost $30 to 35 million, with total mean oil for the Upper Fars reservoir on a Gross Unrisked basis at 106 MMbbls, and with oil equivalent of 121 MMBOE.
Talisman Energy is operator on the entireKurdamir Block, and has drilled both the Topkhana-1 and the Kurdamir-1 wells, which have the potential to develop into a giant oil field.
WesternZagros has a 40% interest in the Kurdamir structure that carries the Oligocene, Eocene and Cretaceous reservoirs for total mean oil on a Gross Unrisked Prospective Resource basis of 585 MMbbl, with gas of 825 MMBOE.
Kurdamir-1 was drilled on the crest of the Oligocene, Eocene and Cretaceous reservoirs, and was shut in at a depth of 4,077 metres, after reporting 1,900 metres of total hydrocarbon shows in all three reservoirs.
The well tested at 27.5 MMcf/d of gas, and 1,172 bbls/d of 61° API natural gas liquids, and confirmed the discovery of a large gas cap and light oil in the shallowest part of the Oligocene reservoir. The presence of a gas cap on the crest of the Kurdamir and Topkhana structure is similar to existing giant oil fields in Iraq and Iran, and Kurdamir-1 is expected to produce at rates of over 50MMcf/d of gas and 2,240 bbls/d of condensate from this reservoir.
Kurdamir-2 was spudded on October 25, 2011,and is located down dip and on the flank of Kurdamir-1, where it is seeking the same structures that were identified in the first well. Kurdamir-2 is expected to cost between $60 to $65 million, and to be completed in the second quarter of 2012.
Kurdamir-2 has already drilled through the Lower Fars top seal to a depth of approximately 2,270 metres, where the third string of casing has been set above the Oligocene reservoir. This reservoir will be drilled and tested in the first quarter of 2012, with the deeper Eocene and Cretaceous reservoirs expected to be drilled and tested by the end of the second quarter of 2012.
The company, which was yesterday named among the top 50 companies on the TSX Venture Exchange, established a capital operating budget of $68 million for the second half of 2011, and expects to re-claim $25 to $30 million from a third party participant yet to be assigned for costs incurred in drilling Sarqala-1 and Mil Quasim-1. Cash on hand is $93.3 million, which includes placement funds of $46.6 million received recently from the Abu Dhabi National Energy Company or TAQA, for a 19.9% interest in the company. TAQA is owned by the Abu Dhabi Government and strongly supports the development efforts that WesternZagros is undertaking, according to the company.
The company’s current production rate is running at 5,000 barrels per day and management is very hopeful that ongoing drilling and development have the potential to build up to a daily production rate of 100,000 barrels per day over the next 3 to 5 years.
Iraq currently produces 3.0 MMbbls/d of oil, which is a post-war record high, and exports 2.2 MMbbls/d through facilities on the Persian Gulf. The Iraqi oil ministry is building four floating terminals that will provide an additional 3.60 MMbbls/d in export capacity, with the first terminal coming on line and immediately adding an additional 0.4 MMbbls/d in export capacity.
Small volumes of oil are exported into Turkey via the Kirkuk-Ceyhan pipeline, which is capable of handling approximately 1.6 million bopd, but is prone to sabotage, is in frail condition, and is currently only handling approximately 600,000 bopd.
Exxon Mobil (NYSE:XOM) recently announced that it has contracted with Kurdish authorities for oil rights that appear to be in direct contravention with directives from the Iraq Government in Baghdad. Exxon Mobil carries a tremendous amount of influence within the Iraqi government as it is heading up a $100 billion revitalization effort on Iraq’s southern oil fields, and any effort to waylay Exxon will put a major dent in Iraq’s oil production plans.
This is bullish news for developers of Kurdish oil resources, as it will probably open the door to many other oil majors, and lead to accelerated development of oil fields and associated infrastructure that will include pipelines.
WesternZagros targets multi-billion barrel oil resources in Kurdistan, starts production
WesternZagros (CVE:WZR) is a Canadian oil and gas explorer that is successfully exploring and developing crude oil and natural gas resources in the Kurdistan region of Iraq.
Results generated by the drilling of Sarqala-1 in the Garmian Block, and Kurdamir-1 on the Kurdamir Block, indicate that the two Blocks cover multiple prospects that have the potential to develop into giant oil fields that could host over 3.6 billion barrels of oil equivalent (BOE) of independently audited prospective resources.
These excellent results are allowing WesternZagros to transition from being a pure exploration company into an explorer and production company that is producing over 5,000 bbl/d from the Sarqala-1 oil discovery and targeting over 1 billion BOE in the next five months including the Sarqala-1 oil discovery, and drilling of Mil Qasim, and Kurdamir-2.
The Kurdamir and Garmain Blocks cover 2,120 square kilometres, and are among the largest exploration areas that were granted by the Kurdistan Regional Government to any entity.
WesternZagros is the operator and holds a 40% interest in the Garmian Contract Area that covers 1,780 square kilometres; and holds a 40% interest in the Kurdamir Contract Area that covers 340 square kilometres and has Talisman Energy (NYSE:TLM) (TSE:TLM) as operator. The Kurdistan Regional Government retains a 20% working interest in both Blocks.
The Production Sharing Contracts require the operators and partners to carry all development costs and make payment of a 10% royalty from total crude production, with up to 45% of the remaining oil available for cost recovery. The profit on the remaining oil is split between the parties on a sliding scale from 16% to 35%, and is based on a formula that assesses revenue over cost. The PSCs negotiated on the Kurdamir and Garmian Blocks carry among the most favorable terms when compared to other PSCs negotiated with the Kurdish Regional Government.
Sarqala-1 was drilled and completed in the second calendar quarter of 2011 at a total cost of $20 to $25 million, which included casing repair operations, sidetracking and testing operations.
The well was drilled in the middle of the Sarqala structure that extends over a distance of 15 kilometres, and was sited on the flank of an Upper Fars Sandstone reservoir that is located above the crest of deeper Jeribe Dolo-Limestone, Oligocene, Eocene and Cretaceous reservoirs. It was penetrated through the Upper Fars reservoir and crest of the Jeribe and Oligocene reservoir, terminating below a prospective oil formation at 4,357 metres.
A sidetrack was completed through the Jeribe Formation, and tested at over 9,000 bopd that flowed 40°API oil, with no stimulation or water recovered. An independent audit completed by Sproule Associates estimated Gross Unrisked Resources for total mean oil of 24 MMbbls, with gas of 31 MMBOE within Jeribe.
Total mean oil for the Jeribe and Upper Dhiban, along with Oligocene, Eocene, and Cretaceous reservoirs, on a Gross Unrisked Resource basis, was estimated at 296 MMbbls for oil, and at 463 MMBOE with gas.
Sarqala-1 commenced oil production through an extended well testing in mid October and produced 220,000 barrels of oil by the end of the 2011 calendar year. Sarqala-1 was producing at a rate of 4,000 barrels per day in December and is projected to produce at an average rate of 5,000 barrels per day through the first half of calendar 2012. The company is also sourcing and installing permanent facilities to increase production beyond 5,000 barrels a day, and to have a gas conservation solution in place to deal with the natural gas.
Western Zagros is contractually committed to provide 100% of the exploration and development costs on the Garmian Block and Sarqala-1, and is entitled to collect 100% of the current oil revenues, which may total as much as $60 per barrel, or approximately $10 million per month until a third party participant is assigned on the Garmian Block.
Mil Quasim-1 was recently drilled and completed on the crest of the Upper Fars reservoir, located about 3 kilometres from Sarqala-1. The well was completed at a final depth of 2,425 metres and an open hole test conducted in the lowermost part of the wellbore successfully flowed oil to surface with no water. Further testing is underway in the Upper Fars, with final results due for release on completion of testing.
The well is estimated to cost $30 to 35 million, with total mean oil for the Upper Fars reservoir on a Gross Unrisked basis at 106 MMbbls, and with oil equivalent of 121 MMBOE.
Talisman Energy is operator on the entireKurdamir Block, and has drilled both the Topkhana-1 and the Kurdamir-1 wells, which have the potential to develop into a giant oil field.
WesternZagros has a 40% interest in the Kurdamir structure that carries the Oligocene, Eocene and Cretaceous reservoirs for total mean oil on a Gross Unrisked Prospective Resource basis of 585 MMbbl, with gas of 825 MMBOE.
Kurdamir-1 was drilled on the crest of the Oligocene, Eocene and Cretaceous reservoirs, and was shut in at a depth of 4,077 metres, after reporting 1,900 metres of total hydrocarbon shows in all three reservoirs.
The well tested at 27.5 MMcf/d of gas, and 1,172 bbls/d of 61° API natural gas liquids, and confirmed the discovery of a large gas cap and light oil in the shallowest part of the Oligocene reservoir. The presence of a gas cap on the crest of the Kurdamir and Topkhana structure is similar to existing giant oil fields in Iraq and Iran, and Kurdamir-1 is expected to produce at rates of over 50MMcf/d of gas and 2,240 bbls/d of condensate from this reservoir.
Kurdamir-2 was spudded on October 25, 2011,and is located down dip and on the flank of Kurdamir-1, where it is seeking the same structures that were identified in the first well. Kurdamir-2 is expected to cost between $60 to $65 million, and to be completed in the second quarter of 2012.
Kurdamir-2 has already drilled through the Lower Fars top seal to a depth of approximately 2,270 metres, where the third string of casing has been set above the Oligocene reservoir. This reservoir will be drilled and tested in the first quarter of 2012, with the deeper Eocene and Cretaceous reservoirs expected to be drilled and tested by the end of the second quarter of 2012.
The company, which was yesterday named among the top 50 companies on the TSX Venture Exchange, established a capital operating budget of $68 million for the second half of 2011, and expects to re-claim $25 to $30 million from a third party participant yet to be assigned for costs incurred in drilling Sarqala-1 and Mil Quasim-1. Cash on hand is $93.3 million, which includes placement funds of $46.6 million received recently from the Abu Dhabi National Energy Company or TAQA, for a 19.9% interest in the company. TAQA is owned by the Abu Dhabi Government and strongly supports the development efforts that WesternZagros is undertaking, according to the company.
The company’s current production rate is running at 5,000 barrels per day and management is very hopeful that ongoing drilling and development have the potential to build up to a daily production rate of 100,000 barrels per day over the next 3 to 5 years.
Iraq currently produces 3.0 MMbbls/d of oil, which is a post-war record high, and exports 2.2 MMbbls/d through facilities on the Persian Gulf. The Iraqi oil ministry is building four floating terminals that will provide an additional 3.60 MMbbls/d in export capacity, with the first terminal coming on line and immediately adding an additional 0.4 MMbbls/d in export capacity.
Small volumes of oil are exported into Turkey via the Kirkuk-Ceyhan pipeline, which is capable of handling approximately 1.6 million bopd, but is prone to sabotage, is in frail condition, and is currently only handling approximately 600,000 bopd.
Exxon Mobil (NYSE:XOM) recently announced that it has contracted with Kurdish authorities for oil rights that appear to be in direct contravention with directives from the Iraq Government in Baghdad. Exxon Mobil carries a tremendous amount of influence within the Iraqi government as it is heading up a $100 billion revitalization effort on Iraq’s southern oil fields, and any effort to waylay Exxon will put a major dent in Iraq’s oil production plans.
This is bullish news for developers of Kurdish oil resources, as it will probably open the door to many other oil majors, and lead to accelerated development of oil fields and associated infrastructure that will include pipelines.
Sunday, October 30, 2011
TAQA Favours Iraqi Energy Assets
TAQA Favours Iraqi Energy Assets
October 28, 2011
http://iraqidinarrumors.com/taqa-favours-iraqi-energy-assets/
In an interview with Bloomberg, the new CEO of the Abu Dhabi National Energy Company (TAQA) said the state-run company looking at more opportunities in Iraq, and aims to exploit the synergy in its oil, gas and power businesses.
Last week the company agreed to invest $46 million in WesternZagros Resources, acquiring a 19.9 percent stake in the Calgary-based explorer, which has permits to seek deposits in two blocks in Iraqi Kurdistan.
Carl Sheldon, 53, said:
“We could do power there too; we’re looking at an opportunity there now. We’d like to see power businesses next to the oil and gas businesses, and oil and gas businesses next to the power businesses. As we begin to focus much more on the Middle East and Africa, our ability to deliver power and water solutions into those markets is powerful.”
Founded in 2005, Taqa inherited control of several United Arab Emirates power and water plants from its majority owner Abu Dhabi Water and Electricity Authority and expanded into oil and gas.
Taqa’s profit more than doubled to 435 million dirhams ($118 million) in the second quarter as it benefited from a 47 percent advance in Brent crude prices to an average of $116.99 a barrel. The company will release third-quarter results on Nov. 15.
Sheldon expects to see an increasing presence of regional banks funding Taqa as international banks become more capital constrained and devote more of their resources to their home markets. The company owes about $10 billion in public bonds and another $10 billion in bank debt, he said.
Shares in TAQA have lost 21 percent so far this year.
“You may see things like WesternZagros, small, long-term investments for the future in that sort of $50 million scale,” said Sheldon. “You won’t see a big step-out acquisition. But we don’t rule it out. As we develop our portfolio, you’re always asking yourself, ‘should I build it, or buy it’?”
==============
WesternZagros Resources has received payment for its first sale of crude oil to the domestic market in the Kurdistan Region of Iraq. First oil production from the Sarqala-1 extended well test was achieved on October 18, 2011, and first lifting occurred by truck on 27th October.
“Production start-up marks a new chapter in the Company’s history, as WesternZagros takes its first steps to become an exploration and production company, rather than a pure exploration company,” said Simon Hatfield, Chief Executive Officer of WesternZagros.
“We are appreciative of the process established by the Kurdistan Regional Government’s Ministry of Natural Resources, which requires pre-payment directly to WesternZagros for the contracted volumes. We also appreciate the close coordination with the Ministry in starting the test. Thanks to the diligence of our in-country operations personnel, the start-up was conducted in a safe, responsible manner and ahead of schedule.”
Production started at approximately 2,000 barrels of oil per day (“BOPD”) and is anticipated to increase towards 5,000 BOPD in the near future. WesternZagros has signed an initial sales contract for delivery of approximately 33,500 barrels of oil priced in the range of US$50 to US$60 per barrel. WesternZagros plans to use the information gathered from the extended well test in determining future appraisal and development activities, including the potential for increasing production beyond 5,000 BOPD. Horizontal completions may be considered to take advantage of the demonstrated high deliverability of the Jeribe reservoir.
Mil Qasim-1 Exploration Well Update
WesternZagros has successfully set 13-5/8″casing at 1,615 metres at Mil Qasim-1, the Company’s third exploration well. The rig is currently drilling ahead at 1,800 metres in the targeted Upper Fars Reservoir. Following a delayed spud date, drilling is now proceeding on time and on budget. The mean estimate of the gross unrisked prospective resources for this reservoir is 106 million barrels of oil. Further updates will be provided as operations progress. WesternZagros is the operator of the Mil Qasim-1 well.
Kurdamir-2 Exploration Well Update
WesternZagros reports that the Kurdamir-2 exploration well has spudded on October 25, and is anticipated to be completed by June 2012. The well is being drilled on the flank of the Kurdamir structure approximately two kilometres from the Kurdamir-1 discovery well. The combined mean estimate of the gross unrisked prospective resources for the Oligocene, Eocene and Cretaceous reservoirs being targeted by the Kurdamir-2 well is over 585 million barrels of oil. Talisman (Block K44) B.V. (“Talisman”)is the operator of the Kurdamir-2 well.
HSE Milestone
On today’s date, WesternZagros’s operations celebrate having worked one full year without a lost time incident. The dedication to safety demonstrated by all of the Company’s employees and contractors has produced a work safety culture ranked as world class.
(Source: WesternZagros)
=============
October 28, 2011
http://iraqidinarrumors.com/taqa-favours-iraqi-energy-assets/
In an interview with Bloomberg, the new CEO of the Abu Dhabi National Energy Company (TAQA) said the state-run company looking at more opportunities in Iraq, and aims to exploit the synergy in its oil, gas and power businesses.
Last week the company agreed to invest $46 million in WesternZagros Resources, acquiring a 19.9 percent stake in the Calgary-based explorer, which has permits to seek deposits in two blocks in Iraqi Kurdistan.
Carl Sheldon, 53, said:
“We could do power there too; we’re looking at an opportunity there now. We’d like to see power businesses next to the oil and gas businesses, and oil and gas businesses next to the power businesses. As we begin to focus much more on the Middle East and Africa, our ability to deliver power and water solutions into those markets is powerful.”
Founded in 2005, Taqa inherited control of several United Arab Emirates power and water plants from its majority owner Abu Dhabi Water and Electricity Authority and expanded into oil and gas.
Taqa’s profit more than doubled to 435 million dirhams ($118 million) in the second quarter as it benefited from a 47 percent advance in Brent crude prices to an average of $116.99 a barrel. The company will release third-quarter results on Nov. 15.
Sheldon expects to see an increasing presence of regional banks funding Taqa as international banks become more capital constrained and devote more of their resources to their home markets. The company owes about $10 billion in public bonds and another $10 billion in bank debt, he said.
Shares in TAQA have lost 21 percent so far this year.
“You may see things like WesternZagros, small, long-term investments for the future in that sort of $50 million scale,” said Sheldon. “You won’t see a big step-out acquisition. But we don’t rule it out. As we develop our portfolio, you’re always asking yourself, ‘should I build it, or buy it’?”
==============
WesternZagros Resources has received payment for its first sale of crude oil to the domestic market in the Kurdistan Region of Iraq. First oil production from the Sarqala-1 extended well test was achieved on October 18, 2011, and first lifting occurred by truck on 27th October.
“Production start-up marks a new chapter in the Company’s history, as WesternZagros takes its first steps to become an exploration and production company, rather than a pure exploration company,” said Simon Hatfield, Chief Executive Officer of WesternZagros.
“We are appreciative of the process established by the Kurdistan Regional Government’s Ministry of Natural Resources, which requires pre-payment directly to WesternZagros for the contracted volumes. We also appreciate the close coordination with the Ministry in starting the test. Thanks to the diligence of our in-country operations personnel, the start-up was conducted in a safe, responsible manner and ahead of schedule.”
Production started at approximately 2,000 barrels of oil per day (“BOPD”) and is anticipated to increase towards 5,000 BOPD in the near future. WesternZagros has signed an initial sales contract for delivery of approximately 33,500 barrels of oil priced in the range of US$50 to US$60 per barrel. WesternZagros plans to use the information gathered from the extended well test in determining future appraisal and development activities, including the potential for increasing production beyond 5,000 BOPD. Horizontal completions may be considered to take advantage of the demonstrated high deliverability of the Jeribe reservoir.
Mil Qasim-1 Exploration Well Update
WesternZagros has successfully set 13-5/8″casing at 1,615 metres at Mil Qasim-1, the Company’s third exploration well. The rig is currently drilling ahead at 1,800 metres in the targeted Upper Fars Reservoir. Following a delayed spud date, drilling is now proceeding on time and on budget. The mean estimate of the gross unrisked prospective resources for this reservoir is 106 million barrels of oil. Further updates will be provided as operations progress. WesternZagros is the operator of the Mil Qasim-1 well.
Kurdamir-2 Exploration Well Update
WesternZagros reports that the Kurdamir-2 exploration well has spudded on October 25, and is anticipated to be completed by June 2012. The well is being drilled on the flank of the Kurdamir structure approximately two kilometres from the Kurdamir-1 discovery well. The combined mean estimate of the gross unrisked prospective resources for the Oligocene, Eocene and Cretaceous reservoirs being targeted by the Kurdamir-2 well is over 585 million barrels of oil. Talisman (Block K44) B.V. (“Talisman”)is the operator of the Kurdamir-2 well.
HSE Milestone
On today’s date, WesternZagros’s operations celebrate having worked one full year without a lost time incident. The dedication to safety demonstrated by all of the Company’s employees and contractors has produced a work safety culture ranked as world class.
(Source: WesternZagros)
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