Gas Plus Khalakan (GPK), the sole contractor of the Khalakan PSC in the Kurdistan Region of Iraq, has issued an end-2017 operations update regarding the Shewashan field.

Oil Sales:

Total payments received by GPK for oil sales now amount to $9.0 million representing 190,115 barrels of GPK entitlement oil sold through to the end of September 2017. Sales from  October  to December  has  been  invoiced  through  the  traditional  operating procedures in place with the KRG Ministry of Natural Resources.

Oil Production:

In total, cumulative field production to date exceeds 1,300,000 barrels of oil. Current total field production is 1,000 barrels per day. Total oil production for the 3rd quarter 2017 was 81,207 barrels and 422,027 barrels have been produced in 2017, up to and including 1 December 2017.

These amounts are significantly below that required to meet forecast annual production targets and break-even economics. There are two main reasons for this lower production.

Firstly, water production rates in the Qamchuga formation have limited oil production rates. The Qamchuqa formation is heavily fractured and many of these fractures are connected to the aquifer.

Secondly, production rates from the Shiranish and Kometan reservoirs have been limited, due to these formations having a tight matrix, with their fracture network being not as developed and extensive as in the Qamchuqa reservoir. GPK continues to recomplete the four Shewashan wells to limit water production in the Qamchuga and stimulate the Kometan and Shiranish reservoirs to facilitate greater production rates.

This activity is summarized below:

Shewashan #1:

Current production rate: 350 bopd and <5% water cut from the Qamchuqa reservoir. Recompletion plans include: perforation and acid stimulation of the Kometan reservoir.

Shewashan #2:

Current production rate: 650 bopd and low water cut from the Kometan reservoir. Recompletion plans include:  Larger acid stimulation in the Kometan to increase the production from perforated intervals (45m) and a possible propped hydraulic frac in the Shiranish reservoir which has yet to be tried in the field.

Range Energy Resources has announced that Gas Plus Khalakan (GPK), the sole contractor of the Khalakan PSC in the Kurdistan Region of Iraq, issued an operations update regarding the Shewashan field.

Shewashan #4:

The 4th well drilled on the Shewashan field, Shewashan #4, has been completed as a deviated producer in the Qamchuqa reservoir formation only to first extract remaining recoverable oil from this reservoir. There are future plans to recomplete on the Kometan and Shiranish reservoirs. The well was put on production at a rate of 500 bbl/d and is connected to the early production facilities.

The well completion utilized a hydrajet targeted acid stimulation through coiled tubing to enhance production from the fracture network. This is a technique that may now be applied to the other existing wells on the Shewashan field to further enhance productivity in the Qamchuqa and Kometan reservoirs. Water production is approximately 2500 bbl/d, an amount which is well within the design parameters of the new early production facilities.

Shewashan #1:

The Shewashan #1 well has been sidetracked and a new 4.5 inch liner installed. The well has now being recompleted on the Qamchuqa reservoir formation and is producing 750 bbls/day on a 24/64” choke and is currently water free. This well did not require a hydrajet targeted acid stimulation.

Shewashan #2:

The Shewashan #2 well which was previously producing 250 bbl/d from the Shiranish reservoir, is currently being sidetracked as the water isolation program conducted in Q2 2017 has resulted in reservoir damage that cannot be repaired. Production from the well is expected to be further enhanced with the stimulation techniques once a 4.5 inch liner has been installed.

By John Lee.

Canada-based Range Energy Resources has announced that it has received loans totalling CDN$1,315,512 (USD 1 million) from non-arm’s length parties 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.

The Loans are unsecured and evidenced by the loan agreements (the “Loan Agreements”) bearing an interest of 7% for the duration of the outstanding Loans, calculated and payable on demand.  The Company may pay the Loans in whole or in part, at any time without penalty.

As CDN$1,315,512 are loans from insiders bearing an interest of 7%, the Loans constitutes a “related party transactions” within the meaning of Multilateral Instruments 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”).  The Company relied upon the applicable exemptions under MI 61-101 from the formal valuation and minority shareholder approval requirements in relation to the Loans.

(Source: Range Energy Resources)

Gas Plus Khalakan (GPK), the sole contractor of the Khalakan PSC in the Kurdistan Region of Iraq, issued an operations update regarding the Shewashan field.

The GPK operations update outlines the continued operating and development events occurring on the Shewashan field including the spud of a new well, Shewashan-4. Key events include;

  • Shewashan-4 Spud: The 4th Shewashan production well has been spud with dual targets including the existing productive zones in the Cretaceous and the unexplored and deeper Jurassic formation.
  • Shewashan-3 Drilling Continues: The deviated well is drilling in the targeted Cretaceous reservoir with completion and production expected to occur before the end of the year.
  • Oil Production and Sales Continue:   Oil sales from the Shewashan-2 well have averaged 3,600 bopd in 2016 with deliveries to the KRG’s Bazian refinery.  Proceeds from oil sales have been received through the end of June.
  • Seismic Reprocessing:  GPK continues to reprocess and remap existing seismic data which is indicating further oil potential in the reservoir attic.
  • Revised Reserve Audit: Reserve auditor DeGolyer & MacNaughton will revise the existing 2015 reserve report and is expecting the report to be published prior to year-end.

Toufic Chahine, Chairman of Range Energy, said:

“Shewashan’s development continues to progress at a rapid rate and we are excited to be actively drilling with two rigs on the block and targeting additional productive capacity in the Jurassic reservoir.  In the near term we look forward the results of the Shewashan-3 well and the revised reserve audit published by DeGolyer & MacNaughton.”

Range Energy Resources is a 24.95 percent indirect shareholder of GPK through its ownership of 49.9% of the shares of New Age Alzarooni 2 Limited (“NAAZ2”).  NAAZ2 owns 50 percent of the shares of GPK.

(Source: Range Energy Resources)

Gas Plus Khalakan (GPK), the sole contractor of the Khalakan PSC in the Kurdistan Region of Iraq, issued an operations update regarding the Shewashan field.

The GPK operations update outlines the continued operating and development events occurring on the Shewashan field including the spud of a new well, Shewashan-4. Key events include;

  • Shewashan-4 Spud: The 4th Shewashan production well has been spud with dual targets including the existing productive zones in the Cretaceous and the unexplored and deeper Jurassic formation.
  • Shewashan-3 Drilling Continues: The deviated well is drilling in the targeted Cretaceous reservoir with completion and production expected to occur before the end of the year.
  • Oil Production and Sales Continue:   Oil sales from the Shewashan-2 well have averaged 3,600 bopd in 2016 with deliveries to the KRG’s Bazian refinery.  Proceeds from oil sales have been received through the end of June.
  • Seismic Reprocessing:  GPK continues to reprocess and remap existing seismic data which is indicating further oil potential in the reservoir attic.
  • Revised Reserve Audit: Reserve auditor DeGolyer & MacNaughton will revise the existing 2015 reserve report and is expecting the report to be published prior to year-end.

Toufic Chahine, Chairman of Range Energy, said:

“Shewashan’s development continues to progress at a rapid rate and we are excited to be actively drilling with two rigs on the block and targeting additional productive capacity in the Jurassic reservoir.  In the near term we look forward the results of the Shewashan-3 well and the revised reserve audit published by DeGolyer & MacNaughton.”

Range Energy Resources is a 24.95 percent indirect shareholder of GPK through its ownership of 49.9% of the shares of New Age Alzarooni 2 Limited (“NAAZ2”).  NAAZ2 owns 50 percent of the shares of GPK.

(Source: Range Energy Resources)

Range Energy Resources Inc has announced that Gas Plus Khalakan (GPK), the sole contractor of the Khalakan Block in the Kurdistan Region of Iraq, issued a press release stating that it has spudded the Shewashan-2 development well on 1st October 2015 under Phase 1 of the approved Field Development Plan (FDP) for the Shewashan oil field in the Kurdistan Region of Iraq.

The press release says that Shewashan-2 is expected to reach a total depth of approximately 3000 meters in the Cretaceous Qamchuga reservoir and take 120 days to drill and complete.

The press release concludes by saying that once finished the well will be put into production and contribute to the Phase 1 production target of 10,000 barrels of oil per day (bopd) in 2016.

(Source: Range Energy Resources)

By John Lee.

Gas Plus Khalakan (GPK) has declared the Shewashan light oil discovery commercial and is preparing the Field Development Plan (FDP) for submission to the Kurdistan Regional Government’s Ministry of Natural Resources in accordance with the Khalakan PSC.

Shewashan-1 produced light oil (45API) on test from reservoir zones in the Cretaceous Shiranish, Kometan and Qamchuga formations. The Shewashan-1 well will now be put on production to gather data ahead of the final FDP approval.

Steve Lowden, Director of GPK, said:

“The Shewashan discovery establishes GPK as a production Operator in the KRG’s expanding oil and gas industry and has demonstrated the potential for significant quantities of light oil to complement the country’s growing reserves base.”

Dr Ashti Hawrami (pictured), KRG Minister for Natural Resources, said:

“We are pleased with this new light oil discovery which will contribute to our stated target of 1 million barrels of oil per day by the end of 2015 / early in 2016.”

Shewashan was the second exploration prospect drilled by GPK on the Khalakan Block situated between the TaqTaq and Miran fields. The field is now delineated with a 122 km2 Production Area.

(Source: GPK)

By John Lee.

Gas Plus Khalakan (GPK) has declared the Shewashan light oil discovery commercial and is preparing the Field Development Plan (FDP) for submission to the Kurdistan Regional Government’s Ministry of Natural Resources in accordance with the Khalakan PSC.

Shewashan-1 produced light oil (45API) on test from reservoir zones in the Cretaceous Shiranish, Kometan and Qamchuga formations. The Shewashan-1 well will now be put on production to gather data ahead of the final FDP approval.

Steve Lowden, Director of GPK, said:

“The Shewashan discovery establishes GPK as a production Operator in the KRG’s expanding oil and gas industry and has demonstrated the potential for significant quantities of light oil to complement the country’s growing reserves base.”

Dr Ashti Hawrami (pictured), KRG Minister for Natural Resources, said:

“We are pleased with this new light oil discovery which will contribute to our stated target of 1 million barrels of oil per day by the end of 2015 / early in 2016.”

Shewashan was the second exploration prospect drilled by GPK on the Khalakan Block situated between the TaqTaq and Miran fields. The field is now delineated with a 122 km2 Production Area.

(Source: GPK)

Range Energy Resources has announced that, on October 16, 2014, Gas Plus Khalakan (“GPK”), the sole contractor of the Khalakan Block in the Kurdistan Region of Iraq, announced by press release that it has declared the Shewashan light oil discovery commercial under the terms of the Khalakan Production Sharing Contract (the “PSC”) and is preparing a Field Development Plan for submission to the Ministry of Natural Resources (“MNR”) of the Kurdistan Regional Government.

The Company is a 24.95% indirect shareholder of GPK through its ownership of 49.9% of the shares of New Age Alzarooni 2 Limited (“NAAZ2″). NAAZ2 owns 50% of the shares of GPK.

Toufic Chahine, the Chairman of the Company’s Board of Directors said:

“We are pleased to hear the news although the Company still hopes for more cooperation with our joint venture partners so that we could work together to achieve the best possible result for all.”

Range has no additional information on the extent of the discovery, including the number of barrels of oil that tests show can be produced from the Shewashan-1 well. Despite the favorable arbitration award that an arbitration panel issued last May that supports the Company’s right to obtain material information as to its investments in the Khalakan Block, neither NAAZ2 nor Black Gold Khalakan Limited, the other shareholder in NAAZ2, have complied with the arbitration award and provided Range with material information regarding the operations on the Khalakan Block.

The Company will continue to pursue its rights and remedies in an effort to obtain material information on Khalakan Block operations that it can report to its shareholders.

(Source: EIN)