Apex Strikes Oil Offshore Tunisia

Wednesday, August 20, 2008

Atlas Petroleum Exploration Worldwide Ltd. (Apex) reached a total depth of 7,231 feet (2,204 m) with the Ras El Besh 3 (REB3) well on the Sfax Offshore Permit in Tunisia. Well logs and formation pressure tests identified the presence of oil in a 33-foot (10-m) thick carbonate interval in the Reineche formation, which was subsequently confirmed by down-hole sampling.[Soft Break][Soft Break]REB3 was drilled by SeaWolf jackup Delta Queen in 39 feet (12 m) of water. The well is to be plugged back and sidetracked to contact 1,640 feet (500 m) of horizontal pay in an operation that is designed to further delineate the extent of the oil accumulation and provide flow rate data in the horizontal section of the hole.

The Reineche formation produces oil and gas from two fields north of the Sfax permit boundary owned by other companies. The fields are located approximately nine miles (15 km) from REB3 and within three miles (5 km) of the northern boundary of the permit. The positive result at REB3 is important for future exploration on the Sfax permit as it is the first offshore Reineche oil discovery south of the Kerkennah Islands, and sets up the possibility of a new hydrocarbon trend in the north half of the permit.

The REB3 well also penetrated a deeper horizon that tested oil in the Ras El Besh 2 well. Logs confirm the presence of oil in the El Garia formation, but it was believed that the well would not recover sufficient reserves to justify a completion. Further analysis will be carried out to determine a future course of action.