Emerald and Gulfsands drilling in Syria - Iraq on hold

Syrian and Iraqi oil exploration is slowly getting underway... but progress is slow.

Oil explorer Emerald Energy announced the start of drilling of the Souedieh North No.1 exploration well in Syria which should be completed in 30 days.The work is adjacent to the Souedieh and Karachok oil fields.

Emerald holds a 50% working interest in the contract for exploration and production for Block 26, Syria, through SNG Overseas Ltd, a 100% owned subsidiary. The operator and holder of the remaining 50% is Gulfsands Petroleum.

Emerald's chairman Alastair Beardsall said, “Souedieh North No.1 is the first of several exploration wells planned to be drilled before August 2007 and marks the start of an exciting Block 26 exploration drilling campaign.”
cBlock 26 covers 11,000 square kilometres and surrounds areas which currently produce over 100,000 barrels of oil per day from existing fields. In January 2006 the Group completed the acquisition of 1,155 kilometers of 2D seismic and anticipates drilling two wells during 2006. The first well, known as Souedieh North, has started which has the potential to contain in excess of 100 MMBO. The second well known as Tigris is scheduled to be drilled in August of 2006 and has the potential to contain in excess of 500 MMBOE.

An independent reserves report (Scott Rider) was issued in January 2006 on the Tigris structure which concluded that there are 442 BCFG of probable recoverable reserves in the Tigris structure. Additionally, the report classified the possible reserves as either natural gas or oil.

Further details of the drilling reports , maps and surveys can be found here

Partner Gulfsands Resources Gulfsands signed a Memorandum of Understanding in January 2005 with the Ministry of Oil in Iraq for the Misan Gas Project in Southern Iraq and is currently negotiating a definitive contract for the project. The project will gather, process and transmit natural gas that is currently a waste by-product of oil production in the Misan region and will end the environmentally damaging practice of gas flaring. Feasibility studies have been undertaken and it is expected to conduct further technical work and commercial discussions with the Iraq Oil Ministry.