Genel Energy PLC (LSE:GENL, OTC:GEGYY) told investors that it has completed testing the Sarta-5 appraisal well in the Kurdistan Region of Iraq, with oil flowing to surface from a number of intervals.
However, the primary reservoirs (the Mus and Adaiyah formations) did not achieve a stable and sustained commercial flow of oil. Neither did secondary target reservoirs (Lower Sargalu or Najmah formations).
The Najmah formation flowed some 800 barrels of oil, Genel noted, but ultimately none of the intervals tested were able to support sustained flow.
Genel has concluded that the reservoirs in this location are ‘tight’, which was identified pre-drill as being a ‘critical key risk’, the company noted.
The company noted: “The presence of oil associated with both the primary and secondary Jurassic reservoir intervals, 12 km southeast of the Sarta pilot EPF, will now be subject to further investigation and integration into the joint venture’s understanding of the Sarta field and future planning.”
Appraisal efforts continue at Sarta with the Sarta-6 well, which is expected to provide results in the third quarter.