Mazarine Energy signs contract for Tunisia drilling campaign

Mazarine Energy signs contract for Tunisia drilling campaign

THE HAGUE, The Netherlands -- Mazarine Energy Tunisia, a subsidiary of Mazarine Energy, has signed a drilling contract with Compagnie Tunisienne de Forage (CTF) for the use of the CTF-4, a 2,000 horsepower onshore drilling rig, for a two-well drilling campaign in the Zaafrane permit in central Tunisia.

The Zaafrane permit area spans an area of 5,168 sq. km, within a historically prolific oil and gas producing region.

The spud date of the first well, Cat-1, is anticipated in late January 2015, within a year of 3D seismic data acquisition.

The CTF-4 drilling rig is estimated to arrive at the Cat-1 drilling site in early January. The rig is currently in Tarfa, Tunisia, approximately 87 km to the east of the Cat-1 location.

Cat-1 will be drilled to a depth of 3,850 m to evaluate the Lower Ordovician Hamra and El Atchane sandstone reservoirs.

If the well encounters hydrocarbons, Mazarine Energy plans to develop the field within 2 years. To evaluate well performance, an extended production test will be considered before development. This would also generate cash flow already in 2015 or 2016.

The Cat-1 location has been surveyed, geotechnical evaluation of the site has been completed, and construction of the location has commenced. Contracts for additional services, required to execute the 2015 drilling campaign, are currently under various phases of technical and commercial tender evaluation. A number of service contracts have been awarded.

Mazarine Energy is operator of the Zaafrane permit and owns a 45% interest. ETAP holds 50% and MEDEX 5%.