Following completion of testing of the successful LES-3 appraisal well, First Calgary Petroleums Ltd. (FCP) has provided an operational update of its Algerian Block 405b activities.
Production Tests
LES-3
• New oil pool discovery in the TAGI zone;
• Tested from multiple zones at normalised totals of 33.6 million cubic feet (MMCF) per day of natural gas, 4,655 barrels per day of condensate, and 8,667 barrels of oil per day (bopd). (18,929 barrels of oil equivalent per day);
• FCP conducted a 5 day flow test on the TAGI zone at LES-3 well proving a new oil pool discovery. The zone flowed 380 API oil with no apparent rate decline during the test. The calculated normalised deliverability rate is 8,667 bopd3 and 6.8 MMCF per day of natural gas.
MLE-6
• Tested at normalised totals of 36.6 MMCF per day of natural gas and 2,396 barrels per day of condensate from multiple zones ( 8,496 barrels of oil equivalent per day);
• This well test completes our appraisal of the MLE field and is an important step towards the application for the MLE exploitation license.
LEW-2
• Testing is now in progress on this recently cased well.
• 4 zones identified for testing.
1 Test rates normalized to 2000 psia flowing wellhead pressure for gas wells, and 2000 psia flowing bottomhole pressure for oil wells.
2 One barrel of oil equivalent = six thousand cubic feet of natural gas.
3 The well tested at a surface equipment limited actual rate of 1,870 bopd. The calculated normal deliverability is 8,667 bopd on a 2000 psi bottomhole producing pressure.
Drilling
FCP has stepped up its drilling activity on the block with 3 exploration wells drilling as follows:
ZER-1
• Spudded on March 26th, 2006.
• This exploration well will be testing a seismically defined structure 23 km NW of the LEW discovery.
GSM-1
• Spudded on April 19th, 2006.
• This well is an exploration location 7 Km south of MZLS-1 and is being drilled on a seismically defined structure evaluating the trapping configuration of the TAGI and lower Devonian zones at the south edge of Block 405b.
GSME-1
o Spudded on April 20th, 2006.
o This well is an exploration location that will be testing the TAGI and lower Devonian zones on a seismically defined structure 7 Km south of LES-2.
MLE Commercialisation
• FCP and Sonatrach are working towards commencement of FEED (Front End Engineering and Design);
• FCP and Sonatrach are also in discussion regarding potential terms for the marketing of natural gas and liquids;
• Upon finalising the marketing terms and conditions, an Exploitation Licence Application (ELA) will be submitted to the Algerian Ministry of Mines and Energy.
Richard Anderson, President and CEO, commented: “Our drilling activities on Block 405b continue to generate excellent results. The TAGI oil pool discovered by LES-3 creates additional appraisal and potential development opportunities. Drilling activity on the block has been accelerated with 3 rigs now operating. Appraisal of the MLE Field is complete and we are progressing towards its commercialisation.”
