www.xtractenergy.co.uk
Xtract Energy identifies and invests in a portfolio of early stage oil and gas assets and business interests with significant growth potential. We aim to engage closely with the associate management teams to achieve project milestones, finance early stage asset and business development activity, and then finance the asset development phase, or if appropriate, crystallise value for all shareholders at a suitable exit point. We aim to achieve returns for our shareholders through access to the significant upside rewards associated with our investments.
Xtract Energy Plc (‘Xtract’) was established in 2004 (as then Resmex Plc) and its shares were admitted to trading on AIM at the end of March 2005.
Xtract Energy says Sarikiz is 'more complex than originally prognosed'
Xtract Energy (LON:XTR) told investors that the technical evaluation of its Sarikiz acreage in Turkey, supports the case that there is a working petroleum system and that good quality sands containing oil are present, however the subsurface reservoir geology is “proving more complex than originally prognosed”.
In today’s update, Xtract told investors that it has now removed the down-hole pump from Sarikiz-2, due to a mechanical failure, and it is attempting to re-establish natural flow from the well.
The company said that the “initial promise of this well to produce commercial oil has not yet been fulfilled”.
The ill-fated Sarikiz-2 well has undergone a workover programme and remedial work. Initially, Sarikiz-2 began production at natural flow rates of around, 350bopd (barrels of oil per day) in January 2010. Later in May, Xtract began a work-over programme to boost production.
The work-over program involved cement repairs to isolate unproductive zones, however in July the company reported that the operations had proved more difficult than initially expected, and it was necessary to install a mechanical bridge plug to the well - at a depth of 1,680m.
Subsequently, Sarikiz-2 was re-completed, with a down-hole pump, and production began under pumped flow from selected perforated zones between 1544-1660m, before mechanical failure brought a halt to the operations.
This morning, Xtract concluded that “the hydrocarbon migration path from the source rocks to effective reservoir traps is not yet properly understood”, and that further evaluation of the greater Sarikiz area is ongoing.
