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Xstate Resources reports mobilisation of rig at Sidi Dhaher well in Tunisia to commence in late June

Xstate Resources reports mobilisation of rig at Sidi Dhaher well in Tunisia to commence in late June

Xstate Resources (ASX: XST) has reported that an agreement has been reached with authorities in Tunisia for a schedule of supervision designed to ensure safe rig mobilisation and efficient drilling operations at the Sidi Dhaher exploration well.

The rig operator anticipates Tunisian authorities will provide road clearance, traffic control and road safety measures, which would allow rig mobilisation to begin on 20 June and drilling to start in early July.

Sidi Dhaher has the potential to host over 300 million barrels of recoverable prospective oil resource in only two primary reservoir zones.

The prospect has six prospective reservoir zones, all of which produce oil and gas from fields within 50 kilometres of Sidi Dhaher.

The estimated cost to drill the well is around $6 million with drilling to take about 30 days.

According to a report released in May 2010, Isis Petroleum Consultants give Sidi Dhaher a 1 in 3 chance of success.

Sidi Dhaher lies within the Chorbane permit that covers 2,428 square kilometres and is adjacent to several onshore producing oil and gas fields.

Xstate said there is excellent operational access, and proximal access to oil and gas pipeline infrastructure as well as support services in the city of Sfax.

Tunisia is directly connected to European gas markets by pipelines, and if gas is discovered at the prospect at the estimated scale, the product could be marketed in Tunisia or in Europe.

Xstate is earning a 10% stake in the Chorbane permit in part by funding on a promoted basis the drilling of Sidi Dhaher.

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Xstate Resources Ltd Timeline

February 15 2017
August 31 2015

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