Gulfsands Petroleum has expanded its onshore footprint in Morocco, after receiving a 75% stake in a newly formed licence block.
The Moulay Bouchta permit, which is adjacent to Gulfsands’ existing permits, covers 2850 km2 and represents the remaining prospective acreage in the area.
A working hydrocarbon system has already been proven in Moulay Bouchta and the permit area includes three known oil fields, where light oil has been discovered in the past. Oil was produced from shallow reservoirs, to a depth of 1200 ft, and Gulfsands intends to explore the potential of deeper and potentially larger structures.
The company also highlighted that the acreage includes areas with known oil seeps, near the Fes permit area, and Tertiary age gas accumulations similar to those in the Rharb permit area are believed to be present within Moulay Bouchta.
A portion of the permit area has already been the subject of a 175 km2 3D seismic survey, and these data together with legacy 2D seismic data over other portions of the licence area will be supplemented by regional seismic data previously acquired by Gulfsands.
The company anticipates that an additional 500 km of 2D seismic data will be captured in a survey to be carried out during the first two-year exploration period. Gulfsands will also undertake a legacy oil field reactivation study during this first exploration period as part of a minimum exploration work programme expected to cost approximately US $3.5 million.
Gulfsands CEO, Mahdi Sajjad, commented: "We are delighted to have been able to conclude these agreements with our partner ONHYM with which we have developed an excellent working relationship since we commenced working in Morocco in January last year. Our reputation as a reliable and efficient operator across the MENA region and our success in moving swiftly to commence exploration operations in Morocco no doubt contributed to ONHYM’s willingness to award this important licence area to Gulfsands.
"We view this licence area as prospective for oil and an important and complementary addition to our already extensive onshore portfolio and consider the award of this permit to reflect local recognition of the efforts our entire organisation has made in establishing a meaningful presence in Morocco in little more than one year.
"We are all very much looking forward to moving forward with successful exploration programmes on the more than 5700 km2 of contiguous area that we now hold with the Fes, Moulay Bouchta and Rharb Sud permits."
Edited from various sources by Katie Woodward
Read the article online at: https://www.oilfieldtechnology.com/exploration/28042014/gulfsands_expands_morocco_footprint_147/