New oil and gas discovery bySafer Exploration and Production Operations Company [Archives:2006/1002/Local News]

November 27 2006

Sana'a, Nov. 26 ) 2006. The Minister of oil and minerals H.E. Mr. Khaled Bahah, today announced a new oil and gas discovery in Yemen by SEPOC (Safer Exploration and Production Operations Company), the Operator of Block 18 in less than a year of its assuming the operations in the Marib Block 18 area.

After remapping the central area of Marib Block 18, a new structure discovery was made in the area southwest of Alif Field. The new discovery field is named Wadi Saba.

The first exploration well (Wadi Saba Well No. 1) in this field was drilled by SEPOC in October 2006 to a total depth of 7115 feet and encountered three different pay zones:

The first zone, Sean Sand, encountered 20 ft of net oil pay column, and was tested at 700 Stock Tank Barrels per day of oil on a 32/64 inch choke at 900 psi flowing wellhead pressure with 42 API gravity. The second zone, Alif Sand, encountered 60 ft of net gas condensate pay column, and was tested at 430 Stock Tank Barrels of condensate per day with a condensate yield of 29 Stock Tank Barrels per MMSCF. The third zone, Intra Salt Clastics Sand, encountered 20 ft of net oil column, this zone is still under testing.

As of 15th November 2005, SEPOC did not inherit proper development plans of Block 18 producing fields. For that reason, SEPOC is conducting due diligence for Block 18 fields and facilities. SEPOC has also signed a contract with reputed companies to carry out a full field development study for Alif field. Similar studies will be conducted for other fields in Block 18 in order to evaluate the oil and gas reserves and to properly plan future drilling and production operations in the Marib Block 18.