Petroceltic-Hess JV to Explore Iraqi Blocks

- Petroceltic-Hess JV to Explore Iraqi Blocks

Wednesday, July 27, 2011
Petroceltic International Inc.

Petroceltic announced that, in partnership with Hess Middle East New Ventures, a subsidiary of Hess Corporation ("Hess"), it has executed two Production Sharing Contracts ("PSCs") with the Kurdistan Regional Government of Iraq ("KRG"). The PSCs are in respect of the Dinarta and Shakrok exploration blocks ("Dinarta" and "Shakrok") in the central north of the Kurdistan Region of Iraq.

Dinarta

Dinarta is a highly prospective undrilled block in a proven but largely unexplored area along trend from existing discoveries in the Kurdistan Region of Iraq. The block, which covers an area of 1319 sq km, is located approximately 75 kms north of Erbil and along trend from the significant Shaikan, Atrush and Swara Tika oil discoveries.

The block itself contains a number of identified surface structures, the largest of which, the Chinara Anticline, is 25 kms along strike from the Swara Tika-1 well, currently reported to be testing a significant new oil discovery. The other structures on the block also have significant potential surface closure areas with multiple reservoir targets believed to be likely to be present in the Jurassic and Triassic strata preserved in this block. The resource potential of the identified structures is considered by Petroceltic to be very significant.

Shakrok

Shakrok is a highly prospective undrilled block in a proven but largely unexplored area along trend from existing discoveries in the Kurdistan Region of Iraq. The block, which covers an area of 418 sq km, is located approximately 50 kms north east of Erbil and is along trend from the nearby Taq Taq oil field and the recently announced Bina Bawi oil discovery.

The block itself contains significant surface anticlines, and, similar to Dinarta, multiple reservoir targets are believed to be likely to be present in the Jurassic and Triassic strata preserved in the block. The resource potential of the identified structures and the Shakrok Anticline in particular is considered by Petroceltic to be significant and in line with other discoveries that have recently been made in the region.

PSC Commitments and Work Program

Each PSC has an initial 3 year exploration period during which the joint venture plans to acquire 2D seismic and drill a minimum of one exploration well. Based on the anticipated work programs, Petroceltic's total financial commitment during the first license period is expected to be approximately $72 million, the majority of which will be incurred over the next 6 months. These amounts are inclusive of all signature and capacity building bonuses payable to the KRG under the terms of the PSC's.

Petroceltic holds its 16% participating interest (20% paying interest) in the PSCs, through a wholly owned subsidiary, Petroceltic Kurdistan Limited ("PKL"). Both blocks will be operated by Hess and the KRG has a carried interest of 20% in each PSC through all phases of operations.

Commenting, Brian O'Cathain, Chief Executive of Petroceltic, said, "The signature of the Dinarta and Shakrok PSCs represents Petroceltics entry into an exciting new region and with an outstanding partner in Hess. These highly prospective blocks add further high impact exploration potential to our portfolio and complement our ongoing exploration and appraisal activities in Algeria and Italy.

"While significant discoveries have already been made, the Kurdistan Region of Iraq remains, a vastly under explored area with huge potential. Our exploration activities in the region are already progressing and we plan to open an office in Erbil in the coming months.

"We have worked closely with the KRG and our co-venturer Hess to conclude these agreements, and are now delighted to have signed the PSCs. We are committed to continuing to work closely with the KRG to maximize the value of these blocks for both the Government and people of the Kurdistan Region of Iraq, and our shareholders."

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Gulf Keystone Focused on Adding Volumes to Iraqi Blocks

- Gulf Keystone Focused on Adding Volumes to Iraqi Blocks

Thursday, June 16, 2011
Gulf Keystone Petroleum Ltd.

Gulf Keystone provided an update on its operations in the Kurdistan Region of Iraq highlighting that:

• Shaikan-2 deep appraisal well is currently at a depth of 3,166 meters with the final total depth (TD) still planned for the lower Triassic or the upper Permian
• Sheikh Adi-1 exploration well is currently at a depth of 3,515 meters in the Triassic Kurre Chine B and a cased hole testing program will be undertaken once the drilling has reached TD
• After spudding on May 27, 2011, the Shaikan-4 deep appraisal well is currently at a depth of 462 meters
• Preliminary results of the Shaikan 3D seismic data interpretation suggest a larger structure (by 5-10%) than originally mapped based on the earlier 2D seismic data
• Bekhme-1 exploration well on the Akri-Bijeel block is drilling ahead at a depth of 2,828 meters.

John Gerstenlauer, Gulf Keystone's Chief Operating Officer commented, "With three Gulf Keystone wells underway on the Shaikan and Sheikh Adi blocks, the second exploration well being drilled in partnership with MOL on the Akri-Bijeel block, and the first exploration well expected to be drilled on the Ber Bahr block in partnership with Genel later in 2011, we are firmly focused on adding further oil-in-place volumes in all four blocks in the Kurdistan Region of Iraq."

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OMV Makes Oil Discovery in Iraqi Bina Bawi Block

- OMV Makes Oil Discovery in Iraqi Bina Bawi Block

Friday, June 03, 2011
OMV

OMV reported drilling success at its operated Bina Bawi block in the Kurdistan Region of Iraq. OMV is currently drilling an exploration well (Bina Bawi 3) and encountered hydrocarbons in one of the primary reservoir targets. The well is still being drilled and further investigations are planned in the course of the well operations including evaluation of deeper potential targets. OMV will inform about the full potential as soon as more information is available.

Jaap Huijskes, OMV Executive Board member and responsible for Exploration and Production stated, "We are very pleased to announce this discovery of oil. It seems good quality oil and it was flowing to surface following a drawdown test. We are now going to continue drilling but I am confident that the final results will be promising."

OMV has direct stakes in five blocks in the Kurdistan Region of Iraq, of which in three as operator. Operated blocks are Bina Bawi (36%), Shorish (100%) and Mala Omar (100%).

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Kogas Secures 100% Stake in Iraqi Gas Field

- Kogas Secures 100% Stake in Iraqi Gas Field

Thursday, May 26, 2011
Asia Pulse Pte Ltd.

South Korea's state-run energy company said it has secured a 100 percent stake in an Iraqi field estimated to hold 3.3 trillion cubic feet of natural gas.

The move doubles Korea Gas Corp.'s (Kogas) holding of the Akkas field in the western part of the Middle Eastern country from 50 percent. The field, once fully developed, may produce gas equivalent to 72,000 barrels of crude oil per day.

Kogas was tapped to buy stakes in the field located in the Anbar province in October. Kazakhstan's KazMunaiGas also expressed interest in the project.

Industry sources, however, said that KazMunaiGas has since reconsidered allowing the South Korean company to increase its control of the gas field.

(C) 2011 Asia Pulse Pte Ltd.

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Kuwait seeks to import Iraqi gas in Shell deal

Kuwait seeks to import Iraqi gas in Shell deal

Apr 11, 2011
Tamsin Carlisle

Kuwait is seeking to import gas from Iraq through a deal with Royal Dutch Shell.
The emirate burns large volumes of oil in its power plants as it has insufficient supplies of cleaner-burning gas.

It has contracts with Shell for summer imports of liquefied natural gas (LNG) and for a complex project to exploit deep gasfields near its border with Iraq, but that project will take years to develop.

In the meantime, Kuwait is seeking to boost imports, some of which may come from the vast gas resources of its neighbour.

"Kuwait is not negotiating with the Iraqi government in this regard, but with international oil companies in Iraq that are developing oil and gas fields there," the Kuwaiti newspaper Al Jarida has reported, citing a source in the state gas industry.

The emirate was hoping to secure a deal for Iraqi gas to start being delivered within the next 12 to 18 months, the official said.

"It is likely that the Kuwaitis have approached Shell, which is in the final stages of negotiating an associated gas-gathering and monetisation joint venture with state-owned South Gas Company in Iraq and Japan's Mitsubishi," said Samuel Ciszuk, the senior Middle East energy analyst at IHS Global Insight.

The much delayed Shell-led venture would gather large gas volumes produced from southern Iraq's big oilfields. The gas there is now being flared, or burnt off.

The priority use for the gas is to fuel Iraq's electricity sector but surplus may be available for export in the first few years of the project while power plants are built.

Shell has suggested temporary exports through a proposed floating LNG terminal it could build within 18 months of signing a contract.

"The Iraqis and Shell might in the end prefer the flexibility of LNG over piping gas to Kuwait," Mr Ciszuk suggested.

At an oil and gas summit in Kuwait last week, Mohammed Hussain, the deputy chairman of Kuwait Oil Company (KOC), said gas supply had become a critical issue for Kuwait and KOC had a long-term plan to nearly quadruple gas output to 4 billion cubic feet a day by 2030.

But LNG imports to Kuwait, which began in 2009, would continue to be needed for some time before the emirate could sufficiently boost its domestic gas output, said Hashim al Rifai, the managing director of planning at Kuwait Petroleum Corporation, the parent of KOC.
The imports have come from as far away as Sakhalin Island in Russia.

Some of the additions to Kuwait's domestic gas output are expected to be associated with increased oil production.


But the emirate faces an uphill battle to develop its marginal oil resources and refurbish large oilfields that were badly damaged in the First Gulf War.

Top Iraqi Panel Asks Oil Ministry to Review Shell Gas Deal -Minister

(Dow Jones Newswires), March 22, 2011

The Iraqi Council of Ministers' energy committee has returned to the Oil Ministry a draft deal with Shell to produce gas from southern Iraq oil fields, in order to review the economics of the pact before submitting it to the cabinet for approval, the country's oil minister said Tuesday.

"God willing, next week we will submit clear views on economics of the contract to the cabinet's Energy Committee," Abdul Kareem al-Luaibi said of the long-awaited $12 billion deal. "Then the Energy Committee will discuss it before submitting specific recommendations to the Council of Ministers."
The minister didn't elaborate on the economics of the deal.

The Energy Committee is headed by Deputy Prime Minister for Energy Affairs, Hussein al-Shahristani, with oil, electricity and water resources ministers also members of the committee.
Shell would hold 44% of the venture, Mitsubishi 5%, and Iraq state-owned South Gas Co. the remaining 51%.

The goal is to capture and produced gas at fields near the oil hub of Basra, including the supergiant Rumaila. Shell in early 2010 finalized contracts with Iraq to produce oil from two super oil fields in southern Iraq.

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