Petek Oil Discovery

March 9, 2014

 

Aladdin Middle East Ltd. ("AME") is pleased to announce that its Petek-No.1 Exploration Well located in SE Turkey on its Karakilise License No 2677, encountered and tested movable oil. Results of drilling, wireline logs and samples of reservoir fluid indicated that, Petek-1 Exploration Well has intersected an oil column of 58 feet. As the second oilfield discovery of AME in the last three months, this discovery serves to highlight the significance of AME's exploration momentum and commitment to SE Turkey.

 

Petek Exploration Prospect is located at 10 kilometers NW to the city of Diyarbakir. Petek-1 Exploration Well was spudded on July 6, 2013 targeting the oil potential both in the Cretaceous Mardin Group Carbonates and Paleozoic Bedinan Sandstones.  Three Drill Stem Tests (DST), one of which was by-passed, have been conducted in the Cretaceous reservoir section and light crude oil was recovered with the third DST. It has been decided to conduct production tests and complete the well at the Cretaceous reservoir in the Mardin Group carbonates. During production tests at this reservoir, the well started artesian flow at varying rates and finally settled at 90 bbls per day of light oil of 35.9° API gravity with 0% water cut using a 14/64" choke.

 

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

 

AME holds a 50% working interest in the well and License No 2677 and with this second subsequent discovery at Karakilise, a Production Lease application will be filed in the near future.

 

Cem Sayer, the President and the Chairman of the Board of AME said that "Our team has worked with dedication, perseverance and professionalism to develop our understanding of this prospect and despite all the technical problems we have encountered during drilling, 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 Dadas shale 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"