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Xstate Resources reports commencement of rig mobilisation at Sidi Dhaher well in Tunisia

Xstate Resources reports commencement of rig mobilisation at Sidi Dhaher well in Tunisia

Xstate Resources (ASX: XST) has reported the commencement of the mobilisation of the camp and rig equipment for the Sidi Dhaher exploration well in Tunisia.

The rig mobilisation commenced on June 20 and drilling of the 300+ million barrel potential Sidi Dhaher Prospect is expected to kick off in early July.

Tunisian authorities will provide road clearance, traffic control and road safety measures. Once the rig mobilization is completed, rig up and equipment testing will start immediately in order to enable drilling operations to start as soon as possible.

Gary Jeffery, managing director, said "it is rare for shareholders to get the opportunity to participate in the drilling of a large oil and gas prospect with up to six separate and vertically stacked prospective reservoirs, all of which have produced oil nearby.”

At the Sidi Dhaher prospect there is potential for over 300 Million barrels of recoverable prospective oil resource in just the two primary reservoir zones.

The company expects the well to intersect 6 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 about $6 million and the well is planned to take around 30 days to drill. There is a 1 in 3 chance of Geologic Success.

The prospectivity of Sidi Dhaher is also supported by the presence of coincident hydrocarbon indicator anomalies.

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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