Horn Petroleum’s Puntland (Somalia) Wells Come Up Dry ! No oil or Gas Found ! Disappointment Strikes Again!

Keith Hill, President and CEO of Africa Oil, commented, “While we were disappointed that we were not able to flow oil from the first two exploration wells in our Puntland (Somalia) drilling campaign, we remain highly encouraged that all of the critical elements exist for oil accumulations, namely a working petroleum system, good quality reservoirs and thick seal rocks. We look forward to working with the Puntland government to move our exploration project to the next phase which will likely require us to focus on prospects in different areas of the basins. One should keep in perspective that it often takes a number of wells to find commercial hydrocarbons and we plan to continue our aggressive program to unlock the potential of this highly prospective region.”
* First exploration in conflicted country in more than two decades
Aug 27 (Reuters) - Canadian oil and gas exploration company Horn Petroleum said on Monday it had encountered only water in a well it drilled in Somalia’s semi-autonomous Puntland region earlier this year, the first to be sunk in the country since civil war erupted two decades ago.
The well, Shabeel North-1, reached a total depth of 3,945 metres and is now being plugged, Horn said.
Because there were no shows of oil and gas, Horn Petroleum determined a second well it drilled earlier in the year, Shabeel-1, also was dry and said the company would not test it further for hydrocarbon potential.
“While we were disappointed that we were not able to flow oil from the first two exploration wells in our Puntland (Somalia) drilling campaign, we remain highly encouraged that all of the critical elements exist for oil accumulations, namely a working petroleum system,” Horn’s chairman Keith Hill said in a statement.
While there has been speculation about finding oil in the anarchic Horn of Africa country for decades, it has no proven hydrocarbon reserves.
The prospect of oil beneath Dharoor’s sandy, arid plains has elicited excitement among officials of the impoverished region. The companies estimated there could be as much as 300 million barrels of recoverable oil in the northern part of Somalia.
Somalia, mired in conflict since warlords in the early 1990s and then Islamist militants reduced the government to impotence, represents one of the final frontiers in Africa to be explored.

Africa Oil Provides Update on Puntland Drilling

VANCOUVER, BRITISH COLUMBIA–(Marketwire – Aug. 27, 2012) - Africa Oil Corp. (TSX VENTURE:AOI)(OMX:AOI) (“Africa Oil” or the “Company”) is pleased to provide an update on the drilling program ongoing in Puntland (Somalia). The Shabeel North-1 well has reached a total depth of 3945 meters and has encountered metamorphic basement at a depth of 3919 meters. The well penetrated 149 meters of interbedded sands and shales of the Triassic Adigrat Formation with no oil or gas shows and only minor porosity exhibited on electric logs. Accordingly, the well is being plugged. As noted in a previous Puntland drilling update, the Upper Cretaceous Jesomma sands did exhibit porosity and hydrocarbon shows but produced only fresh water on a drill stem test. These sands are similar to the Jesomma sands encountered in the previously drilled Shabeel well in respect of log response and oil and gas shows. It has therefore been determined that additional testing of these zones in the previously drilled Shabeel well is also not warranted.

Based on the encouragement provided by the Shabeel wells, the Operator (Horn Petroleum Corporation) and their partners, Range Resources and Red Emperor, plan to enter the next exploration period in both the Nugaal and Dharoor Valley Production Sharing Contracts (“PSC’s) which carry a commitment to drill one well in each block within an additional 3 year term. The current operational plan would be to contract a seismic crew to acquire additional data in the Dharoor Valley block and to hold discussions with the Puntland Government to gain access regarding drill ready prospects in the Nugaal Valley block. The focus of the Dharoor seismic program will to delineate new structural prospects for the upcoming drilling campaign.
Keith Hill, President and CEO of Africa Oil, commented, “While we were disappointed that we were not able to flow oil from the first two exploration wells in our Puntland (Somalia) drilling campaign, we remain highly encouraged that all of the critical elements exist for oil accumulations, namely a working petroleum system, good quality reservoirs and thick seal rocks. We look forward to working with the Puntland government to move our exploration project to the next phase which will likely require us to focus on prospects in different areas of the basins. One should keep in perspective that it often takes a number of wells to find commercial hydrocarbons and we plan to continue our aggressive program to unlock the potential of this highly prospective region.”
The Puntland (Somalia) exploration program is operated by Horn Petroleum Corporation (“Horn”). Africa Oil holds an approximate 45% equity interest in Horn which in turn holds a 60% working interest in the Dharoor and Nugaal Valley blocks. The other partners in the blocks include Range Resources (20%) and Red Emperor (20%).
 

Africa Oil says Puntland Shabeel North well fails to find oil

Disappointing Shabeel north Test Recovers Water No Oil !! 

Platts Commodity July 23, 2012

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