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Xstate Resources readies to flow test well at Sidi Dhaher oil discovery in Tunisia

Xstate Resources readies to flow test well at Sidi Dhaher oil discovery in Tunisia

Xstate Resources (ASX: XST) has reported that the drilling phase of the onshore Sidi Dhaher 1 oil and gas exploration well has been completed and made ready for flow rate testing.

The drilling rig was released on 5 October 2011 at the well which is located near Sfax on the Mediterranean coast in Tunisia that is surrounded by several producing oil fields and extensive oil and gas infrastructure.

A commercial flow rate of oil and associated gas from the upcoming tests, combined with the access to nearby oil and gas production infrastructure, could potentially position Xstate for significant growth as the well has a 300 million barrel (recoverable) Prospective Resource.

On October 3, operator ADX Energy (ASX: ADX) encountered an interpreted oil column of 30 metres on the basis of pressure data, oil recovered and mud filtrate from down hole sampling, resulting in its share price rising 40% on volumes of more than 12 million shares.

Significantly, well data indicates potential 30 metre light oil accumulation in good quality reservoir rocks consistent with the oil produced from nearby oil fields.

Gary Jeffery, managing director of Xstate Resources, said “the results from the onshore Sidi Dhaher well are very encouraging and have confirmed the oil and gas prospectivity of the Chorbane Area.

Further detailed investigation is required for other zones of interest in the Sidi Dhaher well, and analysis of the extensive physical property measurements taken during drilling. Some of these zones may also be tested if the above analysis confirms them to be of economic interest.

The Sidi Dhaher well has been cased to provide stability and reservoir separation in the drilled well bore, and to allow near term access to the well for flow testing of the potential 30 metre oil zone.

Xstate has now earned 10% interest in the Chorbane area and will be paying its 10% interest share of future costs and will receive the benefits from 10% of future production.

Other participant interests in the Sidi Dhaher -1 well will be: ADX Energy Ltd 40% Operator, Gulfsands Petroleum plc 40%, and Verus Investments Limited 10% (ASX: VIL).

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Xstate Resources Ltd Timeline

February 15 2017
August 31 2015

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