Exclusive:Petrogas to spend $40mn in Block 55,Oman
Independent oil and gas operator is planning to drill first well before the end of 2015
Petrogas Kahil, a wholly owned subsidiary of Petrogas E&P, is set to spend $40mn on exploration in Block 55 onshore Oman, ArabianOilandGas has found.
The company is planning to drill 4 to 6 exploration wells in total, with the first well set to be spudded before the end of 2015, earlier than expected.
“It is an exploration block next to the Rima field and we are very optimistic about this block,” said Mohammed Al Barwani, Chairman of MB Holding, which owns Petrogas E&P.
The company originally committed to drilling four wells to the Huqf Supergroup, Oman's oldest oil and gas deposit, but according to Barwani those could now go up.
After acquiring Block 55 located in the southeastern part of Oman in 2013, Petrogas said it would reprocess 3,000km of 2D seismic and acquire an additional 1,550km of 2D seismic data before it starts drilling.
“We spent last year reprocessing data, we just started shooting seismic and we hope to be drilling at the end of the year.” Barwani said.
“It looks good. We are finding leads and prospects but we haven’t drilled yet and it is very difficult to know what potential production will be. We are optimistic that this will be good exploration,” he added.
Petrogas signed an Exploration and Production Sharing Agreement with the government of Oman in May, 2014 for a 100% interest in Block 55, more commonly known as the Kahil Block.