Basakli Oil Discovery

July 08, 2014

 

Aladdin Middle East Ltd. (“AME”) is pleased to announce that its Basakli-1 Exploration Well located in SE Turkey on its Karakilise License No 2674, encountered and tested movable oil. As the third oilfield discovery of AME in the last six months, this discovery serves to highlight the significance of AME’s exploration momentum and commitment to SE Turkey.

 

Basakli Prospect is located at 20 kilometers SE to the city of Diyarbakir. Basakli-1 Exploration Well was spudded on May 19, 2014 targeting the oil potential both in the Cretaceous Mardin Group Carbonates and Paleozoic Bedinan Sandstones. Two Drill Stem Tests (DST), have been conducted in the Cretaceous reservoir section and crude oil was recovered in both DST’s. Therefore, it has been decided to conduct production tests and complete the well at the Cretaceous reservoir in the Mardin Group carbonates and test the Paleozoic reservoir in future with another well. During production tests at this reservoir, the well started artesian flow at varying rates and finally settled at 100 bbls. per day of oil of 20.9° API gravity. The well will be set on a pump after observing the natural flow for a while.

 

A Notice of Commercial Discovery has been filed with the General Directorate of Petroleum Affairs of Ministry of Energy of the Republic of Turkey soon.

AME holds a 50% working interest in the well and License No 2674 and with this third subsequent discovery at Basakli, a Production Lease application will be filed shortly.

 

Cem Sayer, the President and the Chairman of the Board of AME said.Our team has worked with dedication, perseverance and professionalism to develop our understanding of this prospect, we are very pleased that our expertise has rewarded us with this recent discovery. We will now undertake further evaluation work to determine the size of the discovery and develop this field. We have already identified more than five new well locations to be drilled to appraise the Cretaceous reservoir. We are also very excited about the potential of the Paleozoic potential in this area and will develop a separate project for its development, in due course. Last but not least, I also would like to thank our investors and the entire Board for their support and trust in AME, it is evident that AME’s aggressive strategy to develop its licenses and building value would not be possible otherwise”