New Gas Discovery Wells
Gulfsands Petroleum PLC
29 July 2005
29 July 2005
Gulfsands Petroleum PLC
('Gulfsands' or 'the Group')
Gulfsands Drills 2 New Gas Discovery Wells in Gulf of Mexico
Gulfsands Petroleum PLC (symbol GPX), the AIM listed oil and gas exploration,
development and production company with activities in the USA, Syria and Iraq,
announces 2 new gas-well discoveries in the Gulf of Mexico by Northstar
Gulfsands LLC, a subsidiary company owned 52.6% by Gulfsands.
Gas Discoveries
Northstar Gulfsands recently participated in the drilling and logging of 2 new
exploration wells in West Delta Block 64. The first well, West Delta 64 #1, was
drilled to a total depth of 12,120 feet (measured depth). The well logged
natural gas pay zones in shallow Pleistocene reservoirs at depths between 2,000
and 3,000 feet. The well additionally logged gas pay in Pliocene intervals
7,600-7,700 feet and 10,600-10,700 feet. Internal estimates put gross reserves
potential for this well in the range of 8-24 BCFG. Production casing has been
set in the well and it has been suspended for completion and production.
The second well, West Delta 64 #2 commenced drilling in early July. Drilling
was interrupted for several short periods of time during hurricanes Cindy and
Dennis, however the well reached total depth of 8,788 feet in late July. The
well logged gas pay in Pleistocene reservoir in the intervals 2,289-2,318 feet,
4,326-4,376 feet and a Pliocene reservoir from 8,225-8,249 feet. Internal
estimates put gross reserves for the West Delta #2 well in the range of 7-17
BCFG. Production casing has been set in the well and it is being suspended for
completion and production.
Northstar Gulfsands has a 12.5% working interest in West Delta #1 and #2. Both
wells should be completed for production by the end of 2005.
Production Status
While some production for Northstar Gulfsands was temporarily shut-in for a very
short time period during the recent hurricanes in the Gulf, there was no
reported damage to any of Northstar Gulfsands production facilities or
pipelines, and production has been restored to pre-storm levels.
Commencement of Production from Eugene Island 83
Production from the recently announced gas discovery on Eugene Island 83 in the
Gulf of Mexico is scheduled to commence by September 2005.
Gulfsands' CEO, John Dorrier, said:
'Completion of these two new West Delta exploration wells adds important new gas
reserves for the Company. In addition, the wells should come on production in a
relatively short period of time and provide new cash flow at a period of
historic high gas prices in the US. We are encouraged by the high success rate
of our exploration wells in the Gulf so far this year and anticipate further
success in the remaining exploration drilling program this year.'
Enquiries:
Gulfsands Petroleum (Houston) 713-626-9564
David DeCort, Chief Financial Officer
College Hill (London) 020-7457-2020
Ben Brewerton / Jim Joseph
Seymour Pierce (London) 020-7107-8000
Richard Redmayne
Jonathan Wright
Note to Editors
• Gulf of Mexico, USA
The Group has a 52.6% interest in Northstar Gulfsands, which owns interests in
39 producing oil and gas fields offshore Texas and Louisiana and operates 8 of
those fields. Northstar Gulfsands has proved and probable reserves of 4.7 mmbbls
of oil and some 29.2 bcf of gas as of 1 November 2004.
• Syria
In Syria, Gulfsands owns a 50% working interest in Block 26 and is the operator.
The block covers 11,000 sq kms and surrounds areas which currently produce over
100,000 bopd from existing fields. The Group has contracted for the acquisition
of an extensive 2D seismic programme during the summer of 2005 and the drilling
of the first well during the first quarter of 2006. Gulfsands has identified 27
exploitation and exploration prospects and leads with mean resources potential
of 1 billion barrels of recoverable oil.
• Iraq
Gulfsands has recently signed a Memorandum of Understanding with the Ministry of
Oil in Iraq for the Misan Gas Project in Southern Iraq and is currently
negotiating the definitive contract for the project. The project will gather,
process and transmit natural gas that is currently a waste by-product of oil
production in the region and will end the environmentally damaging practice of
gas flaring. Gulfsands has completed a feasibility study and expects to conduct
further technical work and commercial discussions with the Iraq Oil Ministry in
the first half of 2005.
• Onshore USA
Gulfsands operates onshore USA through its subsidiary company Darcy Energy LLC.
At the Emily Hawes field, which has previously produced approximately 1.7 bcf
of natural gas before being shut-in, gas production is scheduled to commence in
the summer of 2005. The first well in the Barb Mag oil field commenced drilling
in early July 2005. Darcy Energy has a 25% and 37.5% working interest in these
fields respectively.
This information is provided by RNS
The company news service from the London Stock Exchange
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