Project Profile
Location: North of Izmir, western coast of Turkey
Reserves: 10.4 billion boe potential resources and up to 14.5 tcf of gas
Area: 49,059 hectare
Water Depth: 10-150 metres
Start-up Year: -
Candarli Bay is an offshore block in license AR/EXT/4219. Extrem, a joint venture between Merty Group and Xtract Energy Spain SL, holds 100% interest. There are multiple play opportunities in the block with nearby analogues in the moderately explored basin. The operator estimates up to 10.4 billion boe potential resources on the block in the oil case and up to 14.5 tcf in the gas case. Turkey has an attractive tax/royalty system with exploration incentives.
On October 7 2004, Merty-Petrako Partnership was awarded License PTK-MER /3846 with 50% share each by Turkish Government. On 2006 Petrako assigned his 60% of shares to Merty Energy and left gross 20%. To attract potential investors and further develop the field, gross 80% of Merty Shares were assigned to Extrem Energy, Subsidiary of Merty Energy, in 2008. Business Plan successfully accomplished and on 12 May 2010 50% of Extrem Shares were purchased by Xtract Energy. Following the acquisition, more than US$18 million invested by Extrem. Project continued to progress till the exit of Xtract, due to global financial crisis on 12th of August 2011. Following exit of Xtract from Turkey, all Xtract shares transferred to Merty in exchange of 6% GORR (Gross Overriding Royalty) from future productions. As of today Merty Energy holds 100% control of Extrem Energy and gross 80% of the License. Minority partner, Petrako, in the License is in line with Merty Energy and open to any offer to release its remaining share.
Several leads are identified within the interpretation of the existing seismic lines The two main leads are Lead-A and Lead-B. Lead-A (Prospect-A) is a roll over anticline created by a growth fault which had its last activity probably during the Late Miocene. Pliocene sediments are overlain unconformably on the Miocene structure. Lead- A is in an appropriate position to be filled by matured hydrocarbons expelled from the underlying Eocene source rocks. Reserve estimations are based on variable oil/water contact scenarios and calculated with different areal coverage and different thicknesses. The maximum closure in P10 assessment is 16 km2. Accordingly, calculated OIP and ROIP reserves in the Lead-A is 662.9 Stb and 331.5 Stb, respectively.
Operators:
Merty Energy (through Extrem Energy): Operator with 80% interest
Petrako Ltd: 20% interest