Kuwait Energy
EL-12-211107
86
2.
KE Net Prospective Resources in this table are KE’s Working Interest fraction of the Gross
Prospective Resources; they do not represent KE’s actual Net Entitlement under the terms of the
PSC that governs the asset, which would be lower.
3.
The GCoS reported here represents an indicative estimate of the probability that drilling this Lead
would result in a discovery.
4.
The volumes reported here are “unrisked” in the sense that no adjustment has been made for
geological or commercial risk, i.e. the risk that no discovery will be made or that any discovery would
not be developed.
5.
Prospective Resources should not be aggregated with each other, or with Reserves or Contingent
Resources, because of the different levels of risk involved.
6.5.3 Block 82
KE holds a 21.25% WI in Block 82. The Operator is Medco, holding 38.25%,
while the other partners are the Indian Oil Corporation (12.75%), Oil India
(12.75%) and the Yemen General Corporation for Oil and Gas (15%). The licence
was granted on 17
th
March, 2009, initially for a Phase 1 exploration period of three
years. Due to the security situation in Yemen, which has prevented any activity on
the Block in recent years, extensions to the Phase 1 period has been granted and
it now runs until 17
th
December, 2014. Obligations in Phase 1 include three
exploration wells, 2D/3D seismic acquisition and seismic reprocessing, with a
minimum spend of US$10.1 MM. There is an optional Phase 2 of the exploration
period, also for three years. Obligations in Phase 2 would include a further
exploration well and 2D/3D seismic acquisition, with a minimum spend of
US$7.1 MM.
Block 82 is located on the Jahi high on the flank of the Say’un-Masila Basin, north
of Block 49, and has an area of 1,853 km
2
. One well, Jarshah-1, was drilled on
the northern boundary of the Block, in 1994; it was a dry hole although residual oil
was reported in the Naifa Formation. Post drilling analysis suggests that sand-to-
sand juxtaposition across the up-dip fault may have been the reason no oil was
found in the Qishn formation.
Block 82 is covered by a coarse grid of 2D seismic lines. Seven Leads have been
identified, all in the Qishn Formation (Table 6.11). One of these is potentially of a
significant size, but all are relatively high risk, being subtle, low vertical relief traps
defined by a single 2D seismic line. The results of Jarshah-1 suggest that lateral
seal integrity is an uncertainty. Hydrocarbon charge and migration is a concern
because of the lack of source rocks within the Block. Biodegradation is also a risk
for the Qishn sandstones, which are relatively shallow in this Block.
It is planned to acquire seismic data (2D and 3D) as soon as the security situation
permits. A start on this was made in 2013, with approximately 50% of the planned
acquisition completed, and it is expected to resume the work in June, 2014.
Drilling of the exploration wells would follow interpretation of the seismic data.
