YEMEN EXPLORATION BLOCKS 7 & 74 (8.5%)
Adelphi has an 8.5% working interest in two onshore blocks in Yemen , Block 7 in the Shabwah Basin and Block 74 in the Masila Basin (click here to view map). Both blocks are located in areas with proven petroleum systems and are considered highly prospective for oil. Both blocks are operated by Oil Search who have build a significant asset and operating base in Yemen over the last few years.
The two blocks were won by Adelphi in the 2005 Yemen bidding round as part of an international consortium made up of Oil Search, ARC Energy, Kufpec and Adelphi. A significant milestone was achieved on 15 April 2007 with the official signing of the two respective Production Sharing Agreements by the Yemen Ministry for Oil and Minerals and the joint venture partners. The final step towards commencing the three year exploration program for these blocks involves the formal ratification by the Yemeni President which is expected before the end 2007.
In recent years, there has been a strong focus on structured basement and Kholan sandstone plays in Yemen in which world-class discoveries have been made (click here to view composite cross section of Yemen play concepts).
The most noteworthy discovery from Adelphi's point of view is that OMV has commenced the development of its Al Nilam and Habban discoveries. This oilfield – believed to be a single large structure, is located just a few kilometres from Block 7. First oil production from the Al Nilam field commenced in late 2006 at a rate of 1,000 bopd through temporary production facilities. The field is expected to be developed in a staged process, with production rates to reach 32,000 bopd by 2009/10 while proven field reserves are 50 mmbbls and the field's production life will be about 20 years.
The pipeline and development infrastructure being put in place by OMV will improve the economics of any discovery made in Block 7.
Block 7 (Adelphi 8.5%)
Block 7 is located on the northeast margin of the prolific Shabwah Basin which produces around 120,000 bopd. The location of the block is ideal for the development of the fractured basement play.
At least 5 prospects and leads have been mapped from the existing seismic data, each with the potential to contain reserves of at least 20mmbbls and potentially greater than 100 mmbbls.
The minimum work programme for the committed three year exploration programme requires Adelphi and its partners to reprocess 1,000km of existing seismic, acquire 250km of new 2D seismic and drill 4 exploration wells.
Seismic acquisition and interpretation is likely to take place during the first half of 2008 with the drilling programme commencing in 2008/09.
Block 74 (Adelphi 8.5%)
Block 74 is located within the Masila Basin which is currently producing approximately 250,000 bopd. The export oil pipeline from this basin runs through block 74.
The block is approximately 25km south of Block 43 where the Nabrajah fractured basement oil field, discovered in 2004, contains a gross 500 to 600m gross oil column. Several leads have been identified within the block, each with the potential to host fractured basement type accumulations.
At least 4 prospects and leads have been mapped from the existing seismic data, each with the potential to contain reserves of at least 20mmbbls and potentially greater than 50mmbbls.
The Block 74 minimum work programme for the committed three year exploration period requires Adelphi and its partners to reprocess 500km of existing seismic data, acquire 250km of new 2D seismic and drill 3 exploration wells.
Seismic acquisition and interpretation is likely to take place during 2008/09 with the drilling programme commencing in late 2009.
Click here (or right-click and Save Target) to view background information on Yemen and its oil & gas industry.