TAG oil begins Badr Phase 1 unconventional development

TAG Oil Ltd. is advancing Phase 1 development of the unconventional Abu Roash F (ARF) reservoir in Badr oil field (BED-1), a 107 sq km (26,000 acres) concession in the Western Desert of Egypt.

TAG Oil has chosen the BED 1-7 vertical well for its first re-completion and evaluation operations in BED-1. The well had previously tested at a peak rate of 418 bbl of 24ᵒ API oil and produced about 20,000 bbl from the ARF during a 1-year production period before being suspended.

First stage operations will include conditioning the open-hole section with a production liner, recompleting the ARF, and conducting a diagnostic fracture injection test (DFIT) to determine geo-mechanical properties, and imaging the natural fracture network in the ARF reservoir. This will be followed by hydraulic fracture stimulation to improve permeability and productivity, flow-back, and a production cycle to assess oil recovery potential. 

Services and equipment are being secured and production is expected to start mid-January 2023. Well results are expected in March 2023.

Data collected from BED 1-7 will be incorporated into modeling studies to provide guidance to drill the first horizontal ARF well in BED-1. The company has submitted requisite drilling and environmental permits and anticipates a drilling rig will be secured and ready to spud in May-June 2023.

An additional well could be drilled in fourth-quarter 2023 or early 2024. 

TAG Oil was awarded a petroleum services agreement in September to develop unconventional resources in ABF after negotiations with Egyptian General Petroleum Corp. (EGPC) and a letter of intent confirming EGPC had commissioned Badr Petroleum Co. (BPCO) to conclude the petroleum services agreement with TAG Oil. The 10-year concession includes an optional 10-year extension. Multiphase development is planned (OGJ Online, Oct. 14, 2022).