Significant prospective oil resources unveiled in Block 58
Tethys Oil, a prominent Swedish oil exploration and production company, has recently unveiled significant prospective oil and gas resources in Block 58, located in the Dhofar Governorate in the southern part of Oman.
The company issued a statement which highlighted the completion of a third-party prospective resources audit for the South Lahan area of Block 58, shedding light on the exciting potential within the region.
The audit, conducted by Merlin Energy Resources Ltd, identified six promising prospects in the South Lahan area with an estimated combined unrisked recoverable prospective resource potential of 251.5 million barrels of oil (Pmean).
These prospects, situated within the proven Ara Group play known for light oil production in neighbouring Block 6, have further boosted Tethys Oil’s unrisked recoverable prospective resources on Block 58 to an impressive 435.9 million barrels of oil (Pmean), including the previously audited Fahd area.
Moreover, the audit report also highlighted the alternative prospective gas resources in the South Lahan Ara stringer prospects, estimating unrisked prospective gas resources at 2 trillion cubic feet (Pmean), equivalent to 337 million barrels of oil equivalents
This signifies the potential for gas accumulations in addition to the significant oil resources in Block 58.
Excited about the exploration prospects, Tethys Oil is preparing for rig mobilisation to drill the first exploration well, Kunooz-1 in Fahd, on Block 58. The company’s
Managing Director, Magnus Nordin, expressed enthusiasm about the discovery, stating, “We are delighted to have established unrisked recoverable prospective resources of well over 400 mmbo on Block 58. We are now looking forward to testing this potential with the drill bit, beginning with Kunooz-1 in Fahd.”
Block 58 covers an area of 4,557 km2 and straddles the western flank of the South Oman Salt Basin and the Western Deformation Front.
Previous exploration activities in the block have provided Tethys Oil with valuable data, including 7,600 km of 2D seismic and 1,100 km2 of 3D seismic data, as well as raw logs and well reports from two wells that encountered hydrocarbon shows.
This data has enabled Tethys Oil to identify multiple play concepts within the block boundaries, with several leads already identified. In 2022, Tethys Oil focused its exploration activities on two key areas of Block 58, Fahd, and South Lahan.
In the Fahd area, prospect maturation was completed, resulting in the identification of three prospects with a combined estimate of unrisked prospective resource potential of 184 mmbo. Analysis of the prospect inventory continued in 2023, stared the first exploration well in the third quarter.
Meanwhile, in South Lahan, the company concentrated on processing and interpreting the 450 km2 of 3D seismic acquired in late 2021. The interpretation work in 2022 yielded promising results.
The Exploration and Production Sharing Agreement (EPSA) for Block 58 covers an initial exploration period until July 2024, during which Tethys Oil is committed to a 3D seismic campaign and the drilling of two exploration wells.
In the event of a commercial oil or gas discovery, the EPSA can be transformed into a 15-year production licence, extendable for another five years.
Additionally, an Oman government company holds the right to acquire up to a 30 per cent interest in Block 58 following a commercial discovery.
THE AUDIT, CONDUCTED BY MERLIN ENERGY RESOURCES LTD, IDENTIFIED SIX PROMISING PROSPECTS IN THE SOUTH LAHAN AREA WITH AN ESTIMATED COMBINED UNRISKED RECOVERABLE PROSPECTIVE RESOURCE POTENTIAL OF 251.5 MILLION BARRELS OF OIL (PMEAN).