Genel Energy PLC (LON:GENL) and partner DNO has unearthed a new oil discovery in the Kurdistan region of northern Iraq.
The DNO operated Peshkabir-2 well, located on the Tawke production sharing contract, discovered oil in the Cretaceous horizon though drilling continues down to test further targets.
In flow testing Peshkabir-2’s discovery in the Cretaceous was flowed 28 degree API oil at a rate of 3,800 barrels per day, while pressure measures indicate the oil interval exceeds 300 metres.
DNO and Genel are now considering the possibility of early production from Peshkabir, where it may be possible to truck oil the short distance to the Tawke field’s infrastructure.
Genel highlighted that the well is ahead of schedule and under budget. It is expected to hit target depth in the Jurassic, at 3,500 metres, by early February. Pre-drill budget estimates put the cost of the well at US$17.5mln.
Drilling began on the Peshkabir in October and the Cretaceous horizon was an exploration target whereas the deeper Jurassic is deemed as appraisal – as it is following up a discovery in a 2012 well that was located around 18 kilometres from the Tawke field.
Plans to expand the appraisal of the Peshkabir Cretaceous discovery are also being considered, and that could involve either a side-track or a third new well.