Masirah Oil strikes oil at second well

BUSINESS REPORTER MUSCAT: The second exploration well of Masirah Oil, an associate of Malaysia-based Hibiscus Petroleum, has achieved a light oil flow rate of up to 3,000 barrels per day in block 50 offshore concession area east of Oman.

Masirah Oil said that during a 48-hour test, hydrocarbons flowed up to the surface and the well achieved a light oil flow rate of up to 3,000 stock tank barrels per day with no water production.

The test flow rates were “very encouraging” and that “this was the first offshore oil discovery in the east of Oman after more than 30 years of exploration activities,” according to a company statement.

“The second exploration well produced oil at high and stable rates and is currently under suspension. The successful testing will allow us to deepen our knowledge and understanding of the offshore geology in the east of Oman and assist in our decisions about further exploration, appraisal and development plans for this 17,000-sq-km block,” said Masirah chairman Hans Lidgren.

The objective behind the well, which was drilled to its final depth into the Cambrian formation, was to prove the presence of movable hydrocarbons and a working petroleum system within the block.

Several zones in the well showed evidence of hydrocarbon presence, the press statement added.

“We are excited to continue to collaborate closely with the Ministry of Oil and Gas in Oman and our ultimate shareholders, Rex International Holding Ltd, in Singapore, Hibiscus in Malaysia and Petroci Holding, the national oil company in Cote D’Ivoire,” Lidgren added.

Masirah Oil also said that the Ministry of Oil and Gas has approved the company’s entry into the second phase of the company’s ‘minimum work obligation’ starting from March 23, 2014, with the fulfillment of the commitment specified in the exploration and production sharing agreement for this phase. “We acquired the concession in February 2011 and we have completed the obligations within the stipulated time-frame with positive results.”

“The data acquired from the drilling of the two initial exploration wells and the subsequent discovery of hydrocarbons have deepened our understanding of the offshore geology east of Oman,” Lidgren further added.

Masirah Oil is 64 per cent and 36 per cent owned by Lime Petroleum Plc and Petroci Holding, respectively.

A month ago, Hibiscus said the second exploration well found evidence of hydrocarbons, which had to be sent for testing.