Atzam #4 Well Commences Oil Production Operations? Production...

Atzam #4 Well Commences Oil Production Operations
? Production underway from the perforated section in the Upper C17 carbonates (2,846-2,853ft)
? Strong initial production performance- flow rate restricted to 100 bopd on a small 8/64ths choke,
well head pressure of 400 psi, production of 100% oil cut at 36 - 38° API and no water
? Operator estimates a flow rate of 1,000 bopd on an open choke based on flow rates achieved
from various choke sizes up to 32/64ths- optimal flow rate to be established in coming weeks
? Current flow rate restricted due to limited onsite production storage tank capacity of 7,000
barrels- currently 3,000 bbls from Atzam #4 produced in tanks and ready for immediate sale
? Upgrading of oil storage facilities underway, with negotiations advancing with offtake parties for
current and future production
? Reservoir pressure testing operations completed- independent reviews underway to produce
updated well reserve report
? Current Probable Reserve estimate of 2.3m barrels of oil in Atzam #4 well expected to be
upgraded
? Significant Upside Potential Remains Untested in Atzam #4- 13ft zone in Upper C17 with better
logs than current producing zone will be perforated and tested in future production operations
? Highly Prospective C13 and C14 carbonate zones remain untested above the C17 section, and are
the main producing zones in the nearby Rubelsanto Field- produced over 30 mmbbl to date from
8 wells, 17km from Atzam Field
? Operator advanced with Atzam #5 development well design and location- to be drilled in 201