Gulfsands Petroleum PLC Morocco Operations Update

TIDMGPX

RNS Number : 5385F

Gulfsands Petroleum PLC

23 February 2015

Gulfsands Petroleum Plc

Morocco Operations Update - Gas Discovery at DOB-1 Exploration Well

London, 23(rd) February, 2015:Gulfsands Petroleum plc ("Gulfsands", the "Group" or the "Company" - AIM: GPX), the oil and gas production, exploration and development company with activities in Syria, Morocco, Tunisia and Colombia is pleased to provide the following update on drilling activities in Morocco.

Morocco: Rharb Drilling Programme

Drilling operations on the Douar Ouled Balkhair 1 gas exploration well ("DOB-1") located within the Rharb Centre Permit in Northern Morocco have now concluded with the DOB-1 well being confirmed as a gas discovery. During testing of this discovery, gas flowed to surface during the well's clean up flow period at rates in excess of 10 million standard cubic feet per day ("mmscfpd). DOB-1 has now been suspended as a future gas production well.

The DOB-1 well is the third well to be drilled on the Rharb Centre permit based on the Company's interpretation of 3D seismic survey data acquired by Gulfsands on the permit area in the second half of 2013. The first two wells to be drilled on this permit were also successful in finding gas and flowing it to surface, at wells LTU-1 and DRC-1.

The DOB-1 well was drilled to a Total Depth ("TD") of 1140 metres Measured Depth ("MD") and encountered the primary reservoir target interval on prognosis at a depth of approximately 808 metres MD. Significantly elevated gas readings obtained while drilling, as well as interpretation of geological samples and wire line logs, indicated the presence of a gas bearing sandstone reservoir section of excellent quality. Detailed petrophysical evaluation of wireline logs over the primary target yielded an interpretation indicating a 4.2 metres gross sand thickness, with a net sand thickness of 3.7 metres and evaluated average gas saturation of 70% and average porosity of 34%.

The DOB-1 well was cemented and perforated over the primary reservoir interval, completed and then subjected to a flow testing and pressure survey period for evaluation of well flow performance and connected gas volumes. During initial clean up flow operations over this reservoir, the well produced natural gas at an estimated rate in excess of 10 million standard cubic feet per day ("mmscfpd") on a 48/64(th) inch choke setting. During subsequent multi-rate flow testing, a stable flow of 6.2 mmscfpd was established for a period of 4 hours on a 32/64(th) inch choke setting, with a final wellhead flowing pressure of 1084 psi. No formation water was detected in the gas production stream during testing operations.

The secondary reservoir target interval for the well was encountered at a depth of approximately 1075 metres MD. Significantly elevated gas readings were encountered over the interval 1075-1127 metres MD. However, after the completion of wire line logging operations, mechanical problems with well bore integrity above this interval prevented further access to or production testing of this deeper potential reservoir. The Company is currently reviewing all available data in order to determine the optimal path for further exploration of this reservoir section, which may include a re-deepening of this well at a later date post production of the shallower gas zone, potentially employing in this future operation a modified and strengthened well design.

Drilling and well testing operations for DOB-1 were completed on plan and on budget. Upon completion of operations the Company plans to suspend drilling operations whilst a detailed technical assessment is conducted over the DOB-1 and DRC-1 gas discoveries that will include the identification of potential locations for further drilling in the near vicinity of these discoveries.

Mahdi Sajjad, the Company's CEO commented:

"We are delighted with the results of the drilling and flow testing operations at well DOB-1. This is the third consecutive successful exploration drilling result that the Company has achieved in Morocco utilising the 3D seismic data acquired and processed in 2013-2014.

We are continuing with our efforts to commence production from these discoveries and are receiving much appreciated assistance from ONHYM to ensure this is achieved as soon as possible".

This release has been approved by Ian Conway, Gulfsands Executive Director Technical and Operations, who has Bachelors and Masters Degrees in Physics and has 28 years of experience in petroleum exploration and management. Mr. Conway has consented to the inclusion of the technical information in this release in the form and context in which it appears.

For further information on the matters referred to in this announcement, please refer to the Company's website www.gulfsands.com

 
                                                   +44 (0)20 7024 
Gulfsands Petroleum                                 2130 
Mahdi Sajjad, Chief Executive Officer 
 Alan Cutler, Director: Finance & Administration 
 
                                                   +44 (0)20 7466 
Buchanan                                            5000 
Bobby Morse 
 Ben Romney 
                                                    +44 (0)20 7653 
  RBC Capital Markets                                4000 
Matthew Coakes 
 Daniel Conti 
 Jakub Brogowski 
 
FirstEnergy Capital                                +44(0)20 7448 0200 
Jonathan Wright

Certain statements included herein constitute "forward-looking statements" within the meaning of applicable securities legislation. These forward-looking statements are based on certain assumptions made by Gulfsands and as such are not a guarantee of future performance. Actual results could differ materially from those expressed or implied in such forward-looking statements due to factors such as general economic and market conditions, increased costs of production or a decline in oil and gas prices. Gulfsands is under no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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