First Successful Flow Test from East of Oman in 30 Years

Masirah Oil Limited announced the testflow rates of the previously announced discovery at the second exploration well in Block 50 Oman, were very encouraging.

The exploration well was drilled to its final depth into the Cambrian formation. The key objectives of the exploration well were to prove the presence of movable hydrocarbons and a working petroleum system within the block. Several zones in the well show evidence of hydrocarbon presence.

During a 48-hour test, hydrocarbons were flowed to the surface and the well achieved light oil flow rate of up to 3000 stock tank barrels per day (stb/d) with no water production.

This is the first offshore oil discovery in the east of Oman after more than 30 years of exploration activities.

Hans Lidgren, Chairman of Masirah, said,  “The second exploration well produced at high and stable rates and the well is currently suspended. The successful testing will allow us to deepen our knowledge and understanding of the offshore geology in the east of Oman and assist in our decisions on our further exploration, appraisal and development plans for this 17,000-square-kilometre block.“

“We are excited to continue to collaborate closely with the Ministry of Oil and Gas in Oman and our ultimate shareholders Rex International Holding Ltd in Singapore, Hibiscus Petroleum Berhad in Malaysia and PETROCI the National Oil Company of Côte D`Ivoire,”

He added, “Masirah is pleased to announce that the Ministry of Oil and Gas of Oman, approved Masirah’s entry into the Second Phase of the Minimum Work Obligation starting from March 23, 2014, with the fulfilment of the commitments specified in the EPSA for this phase.”

Hans Lidgren, Chairman of Masirah, said,  “We are very pleased and honoured to be granted the concession extension to proceed with the Second Phase of our work programme for Block 50 Oman. We acquired the concession in February 2011 and we have completed the obligations within the stipulated time-frame with positive results. The data acquired from the drilling of the two initial exploration wells and the subsequent discovery of hydrocarbons have deepened our understanding of the offshore geology east of Oman.”

Dan Broström, Executive Chairman of Rex International Holding, said,  “The test result is a further confirmation of the strength and viability of Rex Virtual Drilling as a tool to find hidden oil deposits. We will continue to leverage on our proprietary direct hydrocarbon indicator as we work to grow our reputation and presence in the world. We have an intensive year ahead of us with activities in all our markets and we look forward to be able to participate in more discoveries in the future.”