Canadian Occidental Petroleum Ltd. has expanded its exploration program on the Masila block in Yemen.
At the same time, affiliate Occidental Petroleum Corp. has acquired an 18% working interest in the 6.8 million acre block in a move that will generate more drilling.
A recent string of CanOxy discoveries on the eastern Yemen acreage has made that country the hottest play on the Arabian Peninsula (OGJ, Oct. 7, p. 47; July 22, p.33; and July 15, p. 34).
EXPLORATION PROGRAM
CanOxy has expanded its program in Yemen by adding a second and third drilling rig, a service rig, and a third seismic crew.
Four wells remain to be drilled in the 1991 exploration program, which would bring the total number of wells in the program to 13.
CanOxy's fifth Masila block well, 3X Camaal, has reached total depth after cutting about 87 feet of net oil pay in Cretaceous Qishn. It will be tested and completed later. That rig moved to the Sunah structure and is drilling 2 Sunah.
The other two rigs are on the Ghayle Bin Yumain and Ressib structures with drilling expected to be finished by November.
CanOxy has two seismic crews working on a 2,000 line km survey. The third crew is to begin operations this month.
OXY INTERESTS
Oxy's Masila interest includes 10% acquired from Consolidated Contractors International Co. SAL (OCC) and 8% from CanOxy.
In exchange, CanOxy received a 15% interest in the U.S. holding company that owns the Oxy subsidiary operating on Block 15 in Ecuador, OCC received cash and other considerations.
Oxy also acquired a farmout from CanOxy on 2,8 million unexplored acres in the northeast corner of the Masila block.
Oxy can earn 39% interest in the acreage by conducting a 500 line km seismic survey with an option to drill one wildcat.
CanOxy agreed to the farmout to assure the block is fully evaluated prior to the March 1993 deadline for relinquishment of noncommercial acreage.
CanOxy will retain a 13% interest in the farmout area and a 52% interest in the rest of the block.
To date, four structures have been drilled on the Masila block, and three wells have been discoveries.
The 2 Camaal is the most recent.
Extended production tests there yielded 4,900 b/d of oil, the maximum capability of the pump.
