Project Profile
Location: Near city of Kifri, to the south of Sulaimaniyah
Proven and Probable reserves: 300 million barrels of oil
Area: 2,800 km2
The Shakal structure is a fault-bound structure beneath a salt thrust located near the city of Kifri, to the south of Sulaimaniyah. Petoil negotiated and signed a PSA (Production Sharing Agreement) covering an area of 2,800 km2 in 2003. In 2004, Petoil transferred 50% of its participating interest in the PSA to Prime Natural Resources to share the potential exploration risk. After several revisions, the agreement area was reduced to an exploration block of 640 km2 covering southeastern half of the greater Pulkhana structure, namely the Shakal block. The participating interest of Petoil was reduced to 9% after assignment of a part of Petoil’s interest to the Oil Search Limited and some adjustments made by the Federal Government. Original agreement area was further reduced to 474 km2 after mandatory relinquishment at the end of the 1st Exploration Period in 2010. Shakal Production Ltd. is currently acting as the operator of the PSC.
Geological field surveys and environmental baseline study were completed in 2008. Acquisition and interpretation of 366 km new 2D seismic survey were carried out in between 2007 and 2010. The first exploratory well, Shakal-1, was drilled in 2009. Three different zones, in two different reservoir formations (Paleocene Jaddala and Aaliji ) were successfully tested and the well flowed 625-1500 bpd of 26-35°API oil through 13/64” choke during the tests.
Operators:
Shakal Production Ltd (Prime Energy): Operator with 20% interest
Petoil: 11.25% interest
Prime Natural Resources: 50% interest
Oil Search: 18.75% interest
In terms of revenue interest, Prime will take a 36% cut, followed by the KRG on 20%, Oil Search with 15%, Petoil on 9% and the remaining 20% will be attributed to stake still to be advised.