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HKN Energy receives approval of Sarsang Development Plan

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Oilfield Technology,

HKN Energy Ltd (HKN) has announced that the Kurdistan Regional Government of Iraq (KRG) has formally approved its Sarsang Development Plan. The plan projects increasing production to 50 000 bpd of oil. Additionally, HKN has also declared that the East Swara Tika-1 well, drilled adjacent to the Swara Tika structure, is commercial.

As operator of the Sarsang Block, HKN conducted extensive testing on the East Swara Tika-1 well bringing oil to the surface from both Triassic and Jurassic reservoirs with aggregate rates exceeding 8000 bpd of oil. The test of the Triassic Kurra Chine A achieved a natural flow rate of 5675 bpd of 37-39 API gravity oil on a 72/64 in. choke with associated gas of 6.8 million ft3/d and a well head pressure of 805 psia.

“We are pleased with the approval of our Development Plan and eager to proceed with the next phase of our programme,” said Russell Freeman, CEO of HKN. “The recent commercial discovery on the East Swara Tika Prospect is exciting and representative of the tremendous potential of the Sarsang Block. We appreciate the support from the KRG as we continue to grow our operations.”

HKN started commercial production of the Swara Tika-1 well in June 2014 and has since produced in excess of 1.5 million bbls of oil, which have been sold into the local market. Due to the commerciality of East Swara Tika-1, HKN has submitted a proposed amendment to the Sarsang Development Plan to include that prospect.

HKN holds a 42% participating interest in the Sarsang Block. The other Sarsang contractors include Marathon Oil KDV BV and Maersk Oil Kurdistan A/S, holding a 20% and 18% participating interest, respectively. The remaining interest in the block is held by the KRG.

Edited from press release by

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