OilVoice - Dove Energy Updates Farm-in Opportunity for Onshore Yemen Block 73

Dove Energy Updates Farm-in Opportunity for Onshore Yemen Block 73

Tuesday, February 02, 2010

Dove Energy owns and operates the 1900km2 exploration Block 73, in the prolific Seyun-Masila Basin, onshore Yemen holding 92.5% working interest with The Yemen Company being carried for their 7.5% stake.

All Phase 1 PSA commitments have been met including seismic reprocessing, acquiring new seismic and drilling a well.

The commitment well Dfiqah-1 was drilled vertically to a Qishn target in a hanging wall closure and extended to penetrate the basement. Geochemical analysis confirms the oil shows present in Qishn, Saar, Naifa and Madbi formations are of the type sourced from the proven Masila system. In addition there is updip potential for the Qishn in the footwall of the fault with oil shows reported in wells to the west of Block 73.

To the west, the block comprises basement overlain by the Qishn Formation and 1 - 1.5Km of sediments. The north eastern part is deeper being located on the southern edge of the Seyun-Masila Basin, one of three rift basins in Yemen.

The basin is highly prospective being sourced by shales within the Madbi and Naifa formations. There are multiple producing reservoirs within the basin. These include the Qishn, Saar, Madbi formations and also fractured basement. The north eastern part of the Block is adjacent to the prolific Nexen Block 51, close to established infrastructure, offering low risk/high reward exploration opportunities in the presence of a proven, working hydrocarbon system with very low threshold production economics.

Work plans for 2010 include acquisition of a 110km2 3D seismic in the Qishn prospect area around Dfiqah-1, plus a small delination 2D seismic survey over a Qishn lead to the south. Acquisition is likely to commence Q1/2 2010 so a farminee could have the opportunity to benefit from a ground floor entry, be involved with the design, processing and interpretation of the new survey prior to selection of a well location if appropriate Dove plans to retain operatorship retaining a 35-40% working interest. The preferred commercial model is to be carried by 2 new partners through Phase II, with pro-rata recovery of past costs.