DRILLING

Amity price dips on mixed results

Mixed results from Amity Oil’s Adatepe-1 well this morning has depressed the stock down 20% to 90 cents after bullish sentiment and early gas shows in the well pushed the company’s share price to $1.13 late last week.

Amity price dips on mixed results

The potential reserves of the discovery were reduced to around 30bcf after it was revealed that the deeper Osmancik Formation was too tight to produce economically from the earlier reported gas-prone interval.

The company said wire-line log analysis clearly shows that the shallow Danismen Formation reservoirs are the thickest and best quality in the entire well. Accordingly the thickest gas pay zone in the Danismen Formation between 1,173m and 1,207m will be completed for production testing.

The drilling rig will remain on site until the Joint Venture participants meet to decide on the immediate program to follow up the Adatepe-1 discovery.

Amity has already laid plans to extend its Turkish drilling program with the Yuksekkoy-1 wildcat well set to begin immediately after the Yesiltepe-1 well.

Site works were completed on the weekend and subject to rig release date on Yesiltepe-1, Yuksekkoy-1 is anticipated to resume drilling in mid July with a potential in-place oil reserves of 30 million barrels, or 36 billion cubic feet of gas in place.

The well is located 25 km south-west of the city of Adana, 14 km east of the city of Tarsus and only five km from the freeway to the a major Mediterranean port city of Mersin which an extensive oil refining industry.

Yuksekkoy-1 is a prominent upper miocene age domal structure, well defined by good quality 2D seismic, shot by Amity early this year. The Adana Basin is sparsely explored and has one producing oil field, located 32 km to the north of Yuksekkoy -1 and an undeveloped gas field, 21 km to the east. The top of the primary target is anticipated at 950m, with a secondary sandstone target at 1,340m and proposed total depth of 1,500m.

The seismic survey shot by Amity early this year, together with reprocessed old seismic, has defined more than 16 drilling targets in Amity’s four licences in the Adana Basin. Amity said TPAO are believed to have discovered gas in a well about 20 km to the east of Yuksekkoy-1 a few days ago.

There is no published information on the size of the discovery or flow rates. Amity holds a 100% interest in the block of four Exploration Licences which include the Yuksekkoy structure.

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