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Published: 11:11 03.10.2006 GMT+2 /HUGIN /Source: Artumas Group Inc. /OSE: AGI /ISIN: CA04317T1066
Mnazi Bay 2 Well Extends Large Structure Updip (Full Version of September 28, 2006 Press Release)
Mnazi Bay 2 Well Extends Large Structure Updip
Artumas Group Inc. is very pleased to announce completion of logging and drill stem testing of Mnazi Bay 2 (MB-2) well covering five separate sandstone horizons in the Tertiary Oligocene and Miocene formations. The logging and testing results of these horizons have exceeded the expectations from the original geological and geophysical interpretations of seismic and Mnazi Bay 1 (MB-1) well.
MB-2 Highlights:
- MB-2 encountered a total of 103 feet of effective net pay in four sandstone horizons between 5576 and 6340 feet measured depth. MB-1 has by comparison 69 feet of effective net pay.
- Preliminary Absolute Open Flow (AOF) for the upper four sands range from 140 to 427 million standard cubic feet per day (Mmscf/d). In comparison, the maximum AOF rate for MB-1 was 85 Mmscf/d. Combined flow rates for the tested horizons of MB-2 were 34.6 Mmscf/d on a ½ inch choke with less than 2% pressure drop at the reservoir.
- Preliminary reserve calculations for the MB-2 well drainage area indicate approximately 87 billion cubic feet (Bcf) of natural gas in place and 60 Bcf of recoverable reserves based on 640 acre spacing.
- High permeability measurements range from 500 to well over 1,000 milidarcies in the four upper sands.
- Porosity average of the reservoir sands is 23.7 % with average water saturation of 24.6 %, showing a significant improvement from MB-1 in both reservoir quality and quantity.
- Condensate and hydrocarbon liquids have been produced with the gas. Samples will be submitted for independent analysis.
The original, independent APA Petroleum Engineering Ltd. report, as summarized in Artumas Group Inc.'s initial public offering prospectus, showed the Mnazi Bay Field P50 reserves to be estimated at 576 Bcf in place. This was based on a field area estimate of 9.9 km2 under closure. Subsequent to that report, Artumas Group Inc. has acquired and integrated an additional 270 km of 2D seismic which extends the Mnazi Bay Field to 84 km2 under closure.
MB-2 will be completed immediately. The reservoir section of MB-2 has been cased with 7 inch liner, cemented and will subsequently be tied-in for long term testing.
The results of the MB-2 appraisal well extending the Mnazi Bay Field structure updip confirms the planned drilling program and the follow-up drilling of MB-3 appraisal well. MB-3 will be drilled approximately 1.5 km east of MB-2. Upon completion of MB-3, an updated independent engineering reserve report will be made available.
Commenting on the success of MB-2, President & CEO, Mr. Stephen Mason states:
"The positive testing results confirm the substantial reserves of the Mnazi Bay Natural Gas Field. As a result, Artumas is entering into discussions to finalize commitments for commercialization with its various off-take market opportunities.
East Africa is facing an energy crisis with extensive load-shedding being experienced in Tanzania, Kenya and Uganda. Mnazi Bay natural gas will provide a much needed solution to energy-starved East Africa."
Mnazi">http://hugin.info/136496/R/1079090/186297.pdf">Mnazi Bay 2 Well Extends Large Structure Updip
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