YEMEN EXPLORATION BLOCK 74 (8.5%)
Background
Adelphi has an 8.5% working interest in an onshore block in Yemen , Block 74 in the Masila Basin (click here to view map), in an area with a proven petroleum system and considered highly prospective for oil.
Until 2009, Adelphi had also held a similar interest in another Yemen onshore block (Block 7) which it had sold to the Mitsui Group during 2009. Both 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. The two respective Production Sharing Agreements were completed and ratified in March 2008 which signalled the commencement of the first three year exploration phases under these PSA's.
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).
Block 74 (Adelphi 8.5%)
Block 74 is located in the southern part of the Masila Basin in Yemen - less than 50km from the main producing oilfields and straddles an oil export pipeline. The Basin produces some 190,000 bopd (2007) predominately from Cretaceous-aged Qishn Formation clastics in conventional structural traps and from large fractured basement traps.
The fractured basement play and the Qishn play are both present in Block 74.
The Block is now operated by KEC (Kuwait Energy Company) - a company that has a significant presence in the Yemen and the Middle East. Other Joint Venture partners include KUFPEC, AWE and Yemen General Corporation for Oil & Gas.
The commitment for the initial exploration period is for 250km of 2D seismic and 3 wells.
The joint venture participants have completed reprocessing existing 2D seismic data and expect to commence seismic acquisition in mid 2010.
Approximately 270km of 2D seismic data will be acquired to mature several large multi-target leads and prospects of up to 80 mmbls of oil (click here to view latest prospect map), to be followed by a three well drilling campaign expected to commence in late 2010/early 2011.
Click here (or right-click and Save Target) to view background information on Yemen and its oil & gas industry.
