Second Seismic Survey Commenced at Manas' Tajikistan Licenses

- Second Seismic Survey Commenced at Manas' Tajikistan Licenses

Tuesday, July 12, 2011
Manas Petroleum Corp.

Manas announced the commencement of the second seismic survey on CJSC Somon Oil Company's WEST and NORTH WEST licenses in the Republic of Tajikistan. This program includes up to 774 km of 2D seismic survey, which up to 115 km will be acquired over the WEST license and up to 659 km will be acquired over the NORTH WEST license. An additional 24 km will extend across the Kyrgyz-Tajik border into Manas' Tuzluk license in the Kyrgyz Republic.

Somon Oil, a 90% owned subsidiary of DWM Petroleum AG, signed the agreement for Seismic Services with the Tajikistan branch of the Kazakh company, DANK Scientific Industrial Firm ("DANK"), on June 29, 2011. DANK has extensive experience in the hydrocarbon exploration industry performing seismic work in the larger Caspian region. DANK also performed Somon's seismic survey in 2010. The seismic work will be conducted with vibrators, airguns (a significant volume of the data is to be acquired across the Karakum Reservoir, for the first time), with the remainder utilizing dynamite as a source.

This seismic survey is being carried out to improve the quality of the existing prospect data, and hence increase the chances of success of the exploratory wells to be drilled upon completion and interpretation of the new seismic data. The first well is anticipated to be spudded at the end of the first quarter of 2012.

Santos International Ventures Pty Ltd ("Santos International")., a wholly owned subsidiary of Santos Ltd., has an option to farm-in to Somon Oil pursuant to an option agreement signed between DWM Petroleum AG, Santos International (and others) on December 10, 2007. The Production Sharing Agreement has yet to be ratified and remains one of the hurdles for Santos exercising the option. Prior to exercise of that option, Santos International has agreed to provide preliminary discretionary funding towards the costs of the abovementioned seismic, although binding fully funded commitments are not intended to arise until exercise of the option. Once exercised, it is intended that (subject to further agreement on terms), Santos International will fully fund the seismic survey and that these costs will be credited to the total funding commitments to be agreed.

Somon has also commenced the process of obtaining all required permits to commence drilling operations in the Chkalovsk area (WEST license) as well as in the West Supetau area (NORTH WEST license).

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Aker Awarded FEED Study at Statoil's Mariner Field

- Aker Awarded FEED Study at Statoil's Mariner Field

Tuesday, July 12, 2011
Aker Solutions

Aker Solutions has won a contract to conduct the topside FEED (front-end engineering and design) study for Statoil on the Mariner field on the UK continental shelf in the North Sea. The contract value is approximately NOK125 million.

The study will be delivered in the summer of 2012, after which the customer may proceed with the final investment decision.

"We are pleased to have won another important topside FEED study from Statoil. The Mariner field presents an exciting opportunity on the UK shelf, which suits our strategy of boosting our presence in the UK further," said Valborg Lundegaard, executive vice president of Aker Solutions' engineering business.

The engineering and design work will be carried out from Aker Solutions' engineering hub in Oslo, together with engineers from the drilling technologies business in Kristiansand, Norway.

Aker Solutions is also strengthening its UK engineering capacity, hiring experienced engineering professionals to its London office, which could offer future support for the Mariner project.

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Beach Begins Gas Flow at AU's First Shale Well

- Beach Begins Gas Flow at AU's First Shale Well

Tuesday, July 12, 2011
Beach Energy Ltd.

A significant gas flow of up to 2 million standard cubic feet per day (MMscf/d) has been achieved from Beach's Holdfast-1 exploratory shale gas well in the Cooper Basin. Holdfast-1, the first well drilled to examine the shale gas potential of the thick Roseneath-Epsilon-Murteree shale sequence in the Cooper Basin, is a vertical data gathering well that was recently flow stimulated in seven stages.

Hot water, steam and low levels of gas started to flow from the well on 1 July upon the commencement of post-stimulation clean-up activities. Late on Friday 8 July the flow was diverted through on-site separation equipment to more reliably measure the gas and stimulation fluid rates. With separation of the gas from the returning stimulation fluid the gas flare was successfully ignited. The gas flow rates, now measured, have remained steady at around 1.8 MMscf/d.

Beach regards the flow rates as significant, given the potential for higher flow rates from future horizontal wells. Follow up wells are planned to be drilled to target the optimal producing zone identified by the extensive coring, stimulation and testing program which has been undertaken by Beach in the Nappamerri Trough.

Beach Managing Director, Reg Nelson, said, "We are delighted and excited by this initial flow rate from Holdfast-1. So far the results give us confidence that these shale target zones, which underlie the conventional oil and gas bearing formations in the Cooper Basin, will significantly increase the natural gas potential of this area. It is still early days but this flow rate looks to be very significant."

Mr. Nelson added, "While these results are preliminary at this stage, it does suggest that significantly larger flow rates may be achievable in an optimally designed, pilot horizontal well. Holdfast-1 was deliberately designed to allow us to experiment with different stimulation techniques and to test different zones within a thick sequence of shales and other lithologies to determine which approach could be applied for the best results when designing a pilot production well."

Beach previously reported the flow stimulation of the Holdfast-1 well had been completed successfully with the various selected target zones fracturing vertically, in line with expectations. The vertical nature of the induced fracturing augurs well for future horizontal production wells.

A variety of well perforation techniques, fluid viscosity and proppant sizes was used in the stimulation of Holdfast-1 to provide a range of information on the response and performance of the different shale and tight rock zones intersected in the Permian aged section of the well. This approach is intended to identify which techniques are best suited to the pilot production program set down for 2012. This program will consist of two horizontal wells, one at each location.

The flow stimulation of Holdfast-1 was undertaken in seven stages, targeting the primary target zones of the Roseneath Shale (two stages), the Epsilon Formation (three stages) and the Murteree Shale (one stage), as well as a deeper secondary zone, the Patchawarra Formation (one stage).

Mr. Nelson said, "While we are greatly excited by the results from the Holdfast-1 well to date, we are not surprised by them. Beach has applied an extremely thorough and detailed technical approach over the past few years to its shale gas research, which identified the Cooper Basin, and more particularly the Nappamerri Trough, as one of the most prospective shale gas provinces in Australia. Beach has been a pioneer of shale gas exploration in Australia and is now best placed to lead the development of the shale gas industry through its accumulated expertise, its acknowledged competence as an operator and the fact that the Cooper Basin has well established infrastructure in place to assist in commercialization of this opportunity."

Participants in PEL 218 (Permian JV) are:

• Beach (Operator) 90%
• Adelaide Energy Ltd 10%

The Cooper Basin is the most prolific onshore petroleum province in Australia, having produced approximately 6 Tcf of gas to date, and is ideally situated as it has the necessary infrastructure for the delivery of oil and gas to the Eastern Australian markets. Within the Cooper Basin, Beach currently holds interests of approximately 20% of the SACB JV (Santos operated), this includes infrastructure such as the Moomba production facility, approximately 23% of the SWQ JV (Santos operated) as well as various oil interests of between 40-75% on the Western Flank of the Cooper Basin.

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Petroceltic Discovers Gas in South Eastern Algeria

- Petroceltic Discovers Gas in South Eastern Algeria

Tuesday, July 12, 2011
Petroceltic International Inc.

Petroceltic, in association with its partner Sonatrach issued an operational update on its Isarene permit (Blocks 228 & 229a) in the Illizi Basin in South Eastern Algeria. Petroceltic operates the permit with a 56.625 % interest, Sonatrach holds a 25% interest, and Enel holds 18.375% interest, pending final Government of Algeria ratification, which is expected later this year.

Highlights

• AT-6 well encounters 45 meters of net pay
• AT-5 testing underway
• Second rig mobilized to accelerate appraisal activities
• Drilling of AT-7 and AT-8 wells scheduled to commence this month

AT-6 appraisal well

Well AT-6, the third well in the current appraisal campaign on the Ain Tsila gas discovery was drilled to a total depth of 2085m and has successfully logged gas in the main Ordovician reservoir. The well is currently being suspended in preparation for testing with a rig-less testing unit following completion of the testing progra currently underway at AT-5.

The AT-6 well is a vertical well targeting a broad culmination in the South East of the Ain Tsila Field outside the 3D seismic survey area, approximately 17 km South East of the AT-4 well location. The principal objective of the well was to extend the proven gas in place and to test the reservoir quality towards the mapped south eastern limit of the field. The well commenced drilling on June 9, 2011 and reached a total depth of 2085m on July 5, ahead of schedule and within budget.

The Ordovician reservoir was encountered as expected with good gas shows and a full suite of logs was run. Initial log interpretations indicate a gross Ordovician reservoir interval of 168m, and a net pay interval of 45m.This confirms the extension of the field at this significant step-out from the previously drilled wells.

Following suspension of AT-6, the Dalma rig will move to drill a further vertical appraisal well in the far southwest of the field, AT-7, which is expected to commence drilling operations in late July.

AT-5 well test

Rig-less well testing operations have recently commenced at the AT-5 wellsite, following minor delays associated with the arrival of certain personnel and equipment to the site. AT-5 was drilled with a 376m of horizontal section through a fractured "pop-up" feature in the Ordovician reservoir. Depending on the results of initial testing, the program is likely to include hydraulic fracturing of some of the reservoir zones to enhance gas flow rates.

Second rig mobilized for extended appraisal program

A second rig, the KCA Deutag T-211 rig, has mobilized to the Isarene permit and is currently rigging up to drill well AT-8 at a location in the north of the field. The AT-8 well is expected to spud in mid-July and is a vertical well targeting a structural pop-up feature similar to AT-5. The well objective is to test for significant additional gas in place as well as potentially accessing fracture features identified on seismic.

With the addition of a second rig, the current six well delineation program is expected to be complete by year end in time for the preparation of the Final Discovery Report for submittal to the Algerian authorities.

Brian O'Cathain, Chief Executive of Petroceltic commented, "Initial results from the AT-6 well are very encouraging and increase the proven area of the Ain Tsila field considerably to the southeast with this large step-out. We are also extremely pleased that testing operations on AT-5 are underway. We are now entering a most exciting and busy period on our Isarene permit in Algeria with 2 rigs and a rig-less testing unit in operation. We look forward to announcing further well results by the end of July."

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