HKN Energy Limited has announced that the Swara Tika wells in Kurdistan Region of Iraq’s Sarsang Block are commercial discoveries
The explorer added that that it will submit a development plan for the discovery to the Kurdistan Regional Government during Q2 2014 for its consideration and approval.
HKN Energy Limited intends to begin production from the Swara Tika-1 well in May 2014 through the existing facilities. In addition to declaring commerciality on the Swara Tika structure, the explorer will continue the ongoing operations within the 682 sq km Sarsang Block, including drilling in the East Swara Tika, West Swara Tika and the Mangesh structures as agreed and permitted by the regional government.
HKN Energy Limited, operator of the block, had drilled two wells on the Swara Tika structure. The Swara Tika-1 exploration well was spudded in August 2010 and drilled to a total depth of approximately 3,800 metres. Daily flow rates were established from two Triassic tests estimated at more than 7,000 bpd of 35° to 39° API oil with associated gas.
The Swara Tika-2 well was spudded in December 2011 and drilled to a total depth of approximately 3,700 metres. The Swara Tika-2 well established natural flow from five Triassic zones totaling more than 18,000 bpd of 35°-39° API oil and 396,435 standard cubic metres of associated gas on a two-inch choke with only a portion of each interval perforated. In addition, during the drilling of Swara Tika-2, HKN Energy Limited had recovered significant quantities of heavier Jurassic oil to the surface using underbalanced drilling techniques. The Swara Tika-2 well is located four kilometres away from the Swara Tika-1 discovery well and the hydrocarbon bearing zones of interest are 150 metres downdip from the Swara Tika-1 well. Both wells have approximately 1,800 metre gross stratigraphic sections with indications of hydrocarbons.
Russell Freeman, CEO of HKN Energy Limited, said, “We are pleased to declare a commercial discovery relating to the Swara Tika structure, which is an important milestone as we move toward the full development of this discovery.
“We continue to appraise the other structures on the Sarsang Block as permitted by Kurdistan Regional Government, and we look forward to working with our co-venturers and the KRG to further develop this world class block.”
Ross Perot, Jr., founder of HKN Energy Limited, added that Kurdistan Region of Iraq continues to show tremendous promise, not only in the richness of its energy reserves but also in the determination of its people to enable commercial development of its natural resources.
HKN Energy Limited holds a 37 per cent participating interest, with an option to acquire an additional five per cent from the KRG, in the Sarsang Block. The other Sarsang venturers include Marathon Oil KDV BV holding a 20 per cent participating interest and Maersk Oil, owning an 18 per cent stake. The remaining 25 per cent stake on the block is held by the Kurdistan Regional Government.
