GEL currently operates a single exploration license in the Thrace Basin of Turkey; F-17-b4. The block was officially awarded January 26, 2019 and comprises 145km2 of acreage. Our first year’s work commitment has been successfully completed.
A legacy well penetration proved a working petroleum system, and the presence of gas. Pehlivanköy-1 was drilled by TPAO in 1992. The well intersected two gas-bearing Teslimköy Member sandstones; 25m and 16m thick, respectively. The sands tested gas at non-commercial rates. However, the prevailing drilling and completion techniques employed are deemed to have been sub-optimal. Thus, an opportunity exists to either re-enter or twin, and fracture stimulate the discovery well, providing for a short time to production and cash flow.
In late 2019 GEL acquired 325km2 of existing 3D seismic data, covering ~90% of block F-17-b4. The data has been processed, and interpretation is ongoing. In addition to the existing conventional discovery, we anticipate development of a drillable prospect inventory with potentially meaningful upside, comprising multiple exploration plays, both conventional and unconventional.
The amplitude signature associated with the conventional sand reservoirs discovered by Pehlivanköy-1 is readily discernible. In March 2020, our reserve auditor, Degolyer & MacNaughton (D&M), assessed the volume of gas associated with the discovery as 315 Bcf GIP at a 3C level of confidence.
Turkish gas prices and fiscal terms are excellent, and globally competitive.
- Competitor Q4 2019 Average Gas Price = $7.40 US/Mcf
- Royalty = 12.5%
- Corporate Tax Rate = 22%
GEL is currently entertaining discussions with prospective investors and farm-in partners. Interested parties are encouraged to contact us.