Exploration & Production | Top Story | Reserves
Marsa Touts Potential of Thrace Basin Poyraz Prospect
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Marsa Energy Inc. has reported the results of an independent reserves and economic evaluation of the Company's Poyraz Ridge field in the Ortakoy Block by DeGolyer and MacNaughton (D&M) effective November 30, 2014.
This report marks a major Company milestone with the recognition of reserves for the first time on the Ortakoy Block highlighted by Proved plus Probable reserves of 21.2 billion cubic feet of gas having a net present value (after Turkish income taxes) at 10% discount rate of $85.7 million US (approximately $100 million Canadian). The Company is also pleased to announce the results of a prospective resource evaluation of the Eocene formations on the entire Ortakoy block by D&M effective December 31, 2014 along with the testing results of the Poyraz S4-1 and Poyraz N3-1 wells that were drilled in Q3 2014.
The Poyraz Ridge field was discovered in Q2-Q3 2013 with the drilling of the Poyraz-1ST and Poyraz-2 wells respectively and further appraised in 2014 with the Poyraz West-1 well. It is located in the AR/MRS/3913 block (the Ortakoy Block), in the Thrace Basin on the Gallipoli Peninsula in the northwest or European side of the Republic of Turkey.
Marsa is operator and holds 100 percent working interest in the Ortakoy Block through its wholly owned subsidiary Marsa Turkey BV.
Poyraz Ridge Field Working Interest Reserve Highlights
Highlights of the evaluation include:
- Total Proved (1P) reserves increased from 0 to 9.8 billion cubic feet (bcf) of natural gas and from 0 to 94 thousand barrels (mbbls) of condensate.
- Total Proved plus Probable (2P) reserves increased from 0 to 21.2 bcf of natural gas and from 0 to 173 mbbls of condensate.
- Total Proved plus Probable plus Possible (3P) reserves increased from 0 to 35.8 bcf of natural gas from 0 to 288 mbbls of condensate.
- Working interest 2P reserves net present value at 10% discount rate after Turkish income Taxes of $85.7 million US (approximately $100 million Canadian). The estimated value disclosed does not represent fair market value.
- The gas dominated reserves are in a high value gas market that is relatively unaffected by fluctuations in world oil price.
Blair Anderson, President and CEO, commented: "With the discovery of the Poyraz Ridge gas field, Marsa Energy has made one of the most significant finds in the Thrace basin in the last 10 years. Our exceptional success with the drill bit, which in combination with acquiring a Gas Wholesalers Licence and obtaining approval from Botas (Turkey's state pipeline company) to tie into their Inter-Turkey Greece Italy connector pipeline transecting the Ortakoy Block, has enabled Marsa to convert contingent resource into significant high value 1P, 2P and 3P reserves on the Poyraz Ridge field." "In 2015, we are focussed on tying the Poyraz Ridge field into the Botas gas grid with a view to having first gas sales in Q1 2016. Further drilling to explore nearby lookalike structures in combination with additional 2D and 3D seismic should not only add to our reserve base but also allow us to retain the majority of the Ortakoy block upon conversion to production licence(s) in late 2015."
The following table summarizes the results of the reserves evaluation of the Company's Poyraz Field as of November 30, 2014.
Ortakoy Eocene - Miocene Prospective
The majority of the 2P reserves in the Poyraz Ridge field are attributed to the Eocene-age Ceylan formation sands and the Sogucak formation carbonates. D&M evaluated the block-wide Prospective Resources associated with the Eocene (and Miocene) formations within a series of en-echelon fold-dominated structures similar to the Poyraz Ridge field. D&M evaluated individual prospects and seven leads, yielding the following results.
Poyraz N3-1 Test Results
The Poyraz N3-1 exploration well, located approximately 1,400 metres ("m") north of Poyraz-2, spudded August 15, 2014 and was drilled directionally to 1,000 m total measured depth ("TMD"). The well was cased with a plugged back TMD of 454.5 m and the rig was released August 28, 2014. Marsa commenced testing operations on November 27, 2014, perforating a net 5 m over four discrete intervals, within a gross interval spanning 302.0 m to 342.0 m. After a cleanup flow and shut in period, the well flowed for 24 hours with a final gas rate of 730 thousand cubic feet per day ("mcfd"). Approximately 6 barrels per hour of formation water was produced throughout the 24 hour flow period. No condensate was produced. Pressure analysis indicates limited reservoir capacity in the tested intervals and as such this well is not anticipated to add material reserves in the future.
Poyraz S4-1 Test Results
The Poyraz S4-1 exploration well, located approximately 3,500 m ENE of Poyraz-2, spud October 12, 2014 and was directionally drilled to 929.0 m TMD. The well was cased with a plugged back TMD of 503.1 m. Marsa commenced testing operations on November 1, 2014, perforating a net 31 m over nine discrete intervals within a gross interval spanning 293.5 m to 350.0 m. After a cleanup flow and shut in period, the well flowed for 24 hours with a final gas rate of 663 mcfd with no water or condensate production. Pressure analysis indicates limited reservoir capacity in the tested intervals and as such this well is not anticipated to add material reserves in the future.