New Age Ltd assesses exploration well potential

The well-dubbed El Kuran-3, in the Somali region of Ethiopia, has reached a total depth of 3,528 meters. Experts of New Age have noted oil and gas flows in the well. The experts are now trying to identify the amount of oil and gas found in the area. The company said it was trying to determine whether the hydrocarbon potential is economically viable or not.

“Currently the well is undergoing logging and evaluation prior to taking a decision on the way forward on the well. There have been numerous oil and gas shows in the well, which is a follow-up to a discovery made by Tenneco in the 1970s. There appears to be a significant amount of oil and gas in several intervals and the primary issues are the quality of the reservoir and potential commerciality given to the remote location,” the company noted.

Tenneco, the American company that was exploring the Ogaden basin in the 1970s reported several oil and gas shows in the El Kuran locality. An independent petroleum expert told The Reporter that the El Kuran locality is known for oil and gas shows. “The most important thing now is to determine the amount of the reserve and the commercial viability,” the expert said.

Sources close to the project told The Reporter that New Age will not drill another exploration well in the concession (Block 7 and 8) in the El Kuran locality. They said the company would remain engaged in analyzing the data collected from the well for the coming two years.

A Dubai-based company contracted by New Age drilled the El Kuran well using a drilling rig called Sakson 501. This company is now negotiating with another company, Falcon Petroleum, engaged in oil exploration project in South Wello zone of the Amhara Regional Sate. After conducting seismic surveys in the Wereilu locality, Falcon Petroleum is now preparing to drill the first exploration well in the concession. Sources said Falcon wants the Dubai based company to drill the first exploration well.

Source: The Reporter