Mil Qasim – 1 Oil Discovery

Mill Qasim-1, the Company’s third exploration well situated approximately three kilometres from Sarqala-1, was spudded in August 2011 and drilled to a total depth of 2,425 metres ahead of time and on budget. In January 2012, an initial open-hole drill stem test in the Upper Fars reservoir was conducted and successfully flowed oil to surface with no water.

In February 2012, WesternZagros announced the well encountered a gross hydrocarbon bearing interval of approximately 800 metres containing numerous sandstones (each in the range of 2-13 metres thick) in the Lower Bakhtaran and Upper Fars formations. The testing program has resulted in the flow of light, 43° to 44° API oil to surface from low permeability sandstone reservoirs and natural fractures in the Upper Fars formation. No hydrogen sulphide and no formation water were identified during testing. Four tests were conducted in the Mil Qasim-1 well. Test 1 was an open hole test, while tests 2 to 4 were cased hole tests:

  • Test 1 was conducted over the open hole section between the depths of 2,129 metres and 2,168 metres. Test 1 resulted in a flow of 44 degree API gravity oil with no formation water, at an average rate of 108 barrels per day (bbl/d) over a two day period using an 8/64” choke with a flowing well head pressure of 1,606 pounds per square inch (psi). Initial reservoir pressure was calculated to be 6,405 psi.
  • Test 2 was conducted over a gross perforated interval of 49 metres between the depths of 2,054 metres and 2,103 metres. Although Test 2 successfully flowed limited amounts of oil to surface, the test failed to evaluate the potential of this section of the reservoir interval due to ineffective perforations.
  • Test 3 was conducted over a gross perforated interval of 167 metres between 1,799 metres and 1,966 metres. Test 3 resulted in a flow of 44 degree API oil with no formation water, at an average rate of 488 bbl/d over a one day period using a 48/64” choke with a flowing well head pressure of 113 psi. Initial reservoir pressure was calculated to be 5,338 psi. Test 3 analysis conducted by an independent third party engineering expert indicates that this interval has the potential to produce at over 1,000 bbl/d if formation damage can be mitigated by stimulation or use of alternative drilling techniques. The Corporation is considering additional measures to enhance future flow from this interval.
  • Test 4 was conducted over a gross perforated interval of 107 metres between the depths of 1,636 metres and 1,743 metres. Test 4 resulted in a flow of 43 degree API oil and an emulsion at an estimated rate of 250 bbl/d over a one day period. Test 4 was conducted using a 32/64” choke with a flowing well head pressure of 90 psi.

Following the additional testing conducted on the Test 4 interval at Mil Qasim-1 in April 2012, WesternZagros is conducting additional analysis to determine how to increase flow rates and unlock the considerable potential of the low permeability, naturally fractured sandstones of the Upper Fars Formation.

Mil Qasim fulfills the third exploration commitment under the first exploration period commitment for the whole Garmian Block.