Project Profile
Value: US$100 million
Start-up Year: 2015
Location: north of the city of Dohuk, Kurdistan region of Iraq, Zagros Fold belt, Iraq
Area: 340,000 acres (1200 km sq.)
Reserves: unknown
The Sarsang license is in the Kurdistan region of Iraq, within the Zagros Fold belt, as the northern extension of structural and stratigraphic trends containing prolific oil fields in Southern Iraq. The Hillwood operated Sarsang License is 340,000 acres (1200 km sq.), just north of the city of Dohuk and adjacent to the license with the Tawlke field discovery. The Sarsang license will be drilled in the 2009-2010 timeframe and with success could contain several hundreds of millions of barrels of oil. This license contains several structures which have been identified from surface geology and are being refined with the acquisition of 2-D seismic data. The initial results of the 2-D seismic program look very encouraging. The seismic is confirming the structures mapped at the surface and providing a much more accurate representation of the structural and stratigraphic framework within the license area.
The geologic structures were formed as compressional thrust fault bounded features as the Arabian Plate moved northwards and collided with the Asian Plate. Most of the structures in the Kurdistan Region have never been drilled and those that have are large oil and gas discoveries including the Tawlke and TaqTaq Fields. The Zagros Foldbelt has multiple reservoirs and source rock intervals identified from field studies and sparse drilling which, when combined with the large anticlines, makes this area one of the most exciting/high potential exploration plays in the world. HKN holds a 42 percent participating interest in the Sarsang Block. The other Sarsang contractors include Marathon Oil KDV B.V. and Maersk Oil Kurdistan A/S, holding a 20 percent and 18 percent participating interest, respectively. The remaining interest in the block is held by the KRG.
Operators:
HKN Energy Ltd. (HKN) (subsidiary of Hillwood International Energy): Operator with 42% interest
Marathon Oil Corp.: 20% interest
Maersk Oil Kurdistan A/S: 20% interest
KRG: 18% interest