Gas Plus Khalakan (GPK), a 75 per cent-owned subsidiary of New Age, will soon commence development drilling on three wells at Shewashan oilfield in Kurdistan Region of Iraq in order to bring them onstream in 2016
According to the company, Phase 1 of the field development plan includes the installation of an early production facility with a target production of 10,000 bpd next year.
The discovery well Shewashan-1, drilled in 2014 to a final depth of 3,038 metres in the Cretaceous, produced light oil from reservoir zones in the Shiranish, Kometan and Qamchuga formations at a maximum rate of 2,850 bpd of 46° API oil.
The exploration well was put onto production for a period of 180 days, which produced a total of 65,000 barrels of oil before increased water production required the well to be shut-in. The oil was sold into the domestic market and transported by road tanker to a nearby refinery by the buyer.
The proved plus probable (2P) oil reserves at Shewashan have been independently certified by DeGoyler and MacNaughton to be 75mn barrels. GPK is the operator of the Khalakan PSC with an 80 per cent interest.
Steve Lowden, CEO of New Age, said, “Despite the current low oil price environment GPK is fully committed to the development of the Shewashan field reserves and to supporting the KRG as it becomes a significant oil producer on the world stage over the next few years. It is a world-class basin that remains a highly economic prospect for the company.”
