By BRIAN GOMEZ OIL Search Ltd has made an oil discovery with its very first wildcat, Shahd-1, at its East Ras Qattara concession in Egypt’s Western Desert. Papua New Guinea’s premier listed company had a similar experience almost two years ago when its very first well discovered oil in Yemen, where operations in the past year have already contributed to group profitability. Prior to this Oil Search has been exclusively involved in exploration and production in Papua New Guinea, where its biggest shareholder is the PNG Government. In yesterday’s announcement to the Australian Stock Exchange shortly before trading ended, the company said the Shahd-1, which at 6am had reached a depth of 3,261m, had intersected a 15m oil interval. It said a 19.5m core had been cut over a 19.5m interval in the Bahariya Formation on the basis of continuing oil shows. Logs were run over the potential production zone in the Bahariya Formation with preliminary indications of 15m of net pay. Oil Search managing director Peter Botten said logs would be run over the oil bearing zone before 7-inch casing was set. Drilling would then continue to intersect an additional objective in the Cretaceous Alam El Buelb Formation. Shahd-1 is the first of a two-well back-to-back programme in the block which are targeting reservoirs in the Cretaceous Abu Roash, Bahariya and Alam El Buelb Formations. Oil Search has a 49.5% stake in the concession with 50.5% held by Sipetrol International SA, which is the operator. Oil Search is also presently drilling a wildcat well, Bina Bawi-1, in Kurdistan in northern Iraq where it has an option to take a 10% stake in a field that potentially could contain a billion barrels of oil. The oil concern, which now has commercial operations in PNG and Yemen, saw its shares yesterday close up A$0.01 at A$3.30 (K7.64).
OSH Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
