Project Profile
Value: US$77m (Shewashan Phase 1)
Location: Kurdistan Region, Iraq
Reserves: 75 million barrels for Shewashan
Production: 877,000 barrels of oil (total in 2016)
Depth: 2768 metres (Shewashan Phase 1)
Start-up year:- early 2017 for Shewashan-4 field
Range Energy Resources Inc. through its subsidiary Gas Plus Khalakan (GPK) participates in the Khalakan Block. The Contractor under the Production Sharing Contract (PSC) for the Khalakan Block exercised its right to extend the Exploration Period under the PSC for a period of one year, and that a well testing program for the second well on the Khalakan Block is being funded by the Company through its capital contributions to New Age Alzarooni 2 Limited (NAAZ2). Exploration, development, and production activities on the Khalakan Block in Kurdistan are governed by the PSC between Gas Plus Khalakan (GPK) and the Kurdistan Regional Government. The Exploration Period was originally scheduled to expire on June 11, 2014. The Company owns 49.9% of the shares of NAAZ2, which in turn is the owner of 50% of the shares of GPK. The Company voted in favor of NAAZ2’s signing on to a GPK shareholder resolution supporting the extension.
Additionally, as a result of a recent Authorization for Expenditure (AFE) reflected in NAAZ2’s revised annual budget, the Company is funding a testing program at the second well being drilled on the Khalakan Block, called Shewashan-1. The Company is funding this activity through the regular capital contributions it is required to make to NAAZ2. NAAZ2 in turn uses this capital to meet its own capital contribution obligations to GPK, which then uses this capital to fund exploration, development, and production activities on the Khalakan Block as the Contractor under the PSC. The Company has not been informed of the status of the testing program or its results. The capital from the Offering will be used by the Company to continue to fulfill its obligations to joint venture participants so that the development of the Khalakan Block in the Kurdistan Region of Iraq can continue as well as provide general working capital.
In Augsut 2015, Range Energy Resources Inc. commenced development drilling to support Phase 1 of the approved Shewashan Field Development Plan and installation of an Early Production Facility with target production of 10,000 barrels of oil per day in 2016. The article includes additional important information regarding the performance of the Shewashan-1 well, Proved plus Probable Oil Reserves, and results from a 180 day production period. Gas Plus Khalakan commenced the development drilling of three wells for Phase 1 of the approved Field Development Plan for the Shewashan oil field in the Kurdistan Region of Iraq. Phase 1 of the development includes the installation of an Early Production Facility and targets production of 10,000 barrels of oil per day in 2016.
The discovery well Shewashan-1, drilled in 2014 to a final depth of 3038m in the Cretaceous, produced light oil from reservoir zones in the Shiranish, Kometan and Qamchuga formations at a maximum rate of 2,850 bopd of 46° API oil. The exploration well was put onto production for a period of 180 days, producing a total of 65,000 barrels of oil before increased water production required the well to be shut-in. The oil was sold into the domestic market and transported by road tanker to a nearby refinery by the buyer. The Proved plus Probable (2P) Oil Reserves at Shewashan have been independently certified by DeGoyler and MacNaughton at 75 million barrels. GPK is the Operator of the Khalakan PSC with an 80% interest.
Operators:
Gas Plus Khalakan (GPK) (a 75%-owned subsidiary of New Age ): Operator with 80% interest
Kurdistan Regional Government
Range Energy Resources Inc.: 50 % interest in GPK or NAAZ2
Others: 50% interest in GPK or NAAZ2
Contractors:
DeGoyler and MacNaughton: Certification of Proved plus Probable (2P) Oil Reserves for Shewashan field