Selmo has produced 149,294 net barrels, a net operating cash flow of $4.5 million and oil sales of $11.2 million.

Incremental acquired the field, which contains an estimated 500 million barrels of in-place oil, following its October IPO.

The company said considerable scope existed for improved production and recovery at Selmo, describing it as “an oilfield which has a long life and provides an excellent net cash flow.”

“The immediate future looks very promising with the current oil price well above the last quarter average, production being maintained at a stable level and technical work on track to support development drilling activities planned for the second and third quarters of 2006,” chairman Chris Cronin said.

Incremental recently started workovers at the 22 operating wells on the field. It is now undertaking seismic reinterpretation and detailed reservoir modeling, before re-entering existing vertical wells in the second quarter and drilling new horizontal production wells in the third quarter.

Turkey-based managing director Gerry McGann said the company wanted the best understanding of the reservoir before selecting new well locations.

“We have extensive 3D seismic data over the field, which we are currently re-interpreting, and we are also undertaking a detailed fracture analysis,” McGann said.

“Once we’ve got this and other technical data at hand, we can start planning well re-entries and horizontal drilling to increase production.”

McGann also said Incremental’s first formal reserves statement was expected for release in the third quarter, following results from subsurface technical work.

In addition to Selmo, Incremental entered a farm-in agreement with Ottoman Energy to fund a future $3.0M exploration program to earn a 15% working interest in the Thrace Basin Edirne Licence 3839.

The joint venture’s Arpaci-1 well in Edirne recently reached a total depth of 509 metres and is now preparing to run production casing, according to operator Ottoman Energy.

Initial petrophysical interpretation indicated several zones of potential interest. But subsequent RFT data suggested gas saturations were low, Ottoman said.

“Factors such as potential reservoir invasion by over-balanced mud, unknown formation fluid salinities and potential similarities with shallow gas producers elsewhere in the Thrace Basin, have led the operator to recommend detailed flow testing,” managing director Jaap Poll said.

“A workover rig, which specializes in completion of testing work, is proposed to be mobilized, when available, to undertake testing of both the Bati Umur-1 gas discovery and the Arpaci-1 well.”

Ottoman said the Arpaci prospect has a positive geochemical anomaly at surface, indicative of mini gas seepage and strong amplitude anomalies on seismic, coinciding with interpreted shallow reservoir intervals.

A third prospect, Koyustu, also with geochemical and amplitude anomalies, is mature for drilling, it said. Koyustu neighbours Bati Umur and Arpaci. Upon success in Arpaci and Koyustu prospects, these individual fields could be developed as one development project and share infrastructure, Ottoman said.

In addition, several follow-up leads have been identified on nearby reconnaissance seismic. These leads will become a focus for seismic detailing in 2006, with the aim to prove-up numerous targets for drilling later in the year.

The company’s first exploration well, Bati Umur-1 discovered gas last month, and has been cased for future flow testing and potential development.