|Kurdistan region of Iraq
|Gross 2P certified reserves
|Gross contingent resources
|1H 2014 gross average production
*Source: RPS Energy. Reserves and Resources remaining as at 31 December 2012, adjusted for 2013 production.
**As announced on 31 October 2013
A world-class development project
The Barda Rash PSC is 55 km north-west of Erbil, and holds the 14,015 mmbbls STOIIP and 1,433 mmbbls gross recoverable Barda Rash oil field. The field is defined as an elongated anticline with surface expression of 20 km length and up to 7 km width. The reservoirs are fractured carbonates of various depositional settings. In 2009, the BR-1 discovery well was drilled to 5,535 ft and successfully encountered oil in Cretaceous to Jurassic reservoirs. Well tests were carried out on the Jurassic Mus and Adaiyah formations, each yielding rates of around 3,200 bopd, with a subsequent extended test of the BR-1 well producing 440,000 barrels of 30° to 32° API oil over a three-month period. During this time, oil was trucked from onsite storage and sent to local refineries. Two further wells were drilled at the field in 2010, BR-2 and BR-3, both encountering oil full-to-base in all reservoirs. The field is defined by 326 km2 of good quality 3D seismic data. In 2012, we commenced the phased development of the field, initially targeting the development of light oil reserves. Having begun an extensive testing programme at the BR-1 well in July 2012, and establishing oil rates in excess of 6,000 bopd of 28° to 32° API oil, as well as obtaining valuable information on the production characteristics of the Mus/Adaiyah reservoir, we initiated production operations in August 2012. In July 2013, we commenced preliminary crude oil sales from the Barda Rash PSC to the local market.
During 1H 2014, gross production at the field averaged 536 bopd. As part of the second phase of development of the field, the BR-4 well tested at a combined rate for 7,850 bopd from two zones in the Triassic Kurra Chine formation. The BR-5 well, which reached total depth (TD) of 14,787 ft, is expected to demonstrate similar production capacity from the Kurra Chine reservoir as soon as drilling operations recommence. Multiple dispersion studies of the flared gas during testing of the BR-4 well indicated high levels of Sulphur Dioxide (SO2) would be released into the atmosphere at the planned sustained rates of 5,000 to 6,000 bopd. As a result, Afren has elected to limit production to circa 1,000 bopd whilst working with the Ministry of Natural Resources (MNR) to put an interim gas solution in place that will allow the production capacity of the wells to be fully utilised.
Post period end on 8 August 2014, Afren announced that it had taken the precautionary step to temporarily suspend operations at the Barda Rash field in light of heightened regional security related issues. Working with our local security advisors, Afren implemented a phased withdrawal of non-essential personnel from the field. Afren will continue to closely monitor events on the ground in consultation with our security team and the relevant authorities. It is expected that Afren will return to field operations as soon as it is prudent to do so. Given the relatively low production to date, the suspension is not expected to have a significant impact on the Group’s cash flow.