Drilling: in the Kurdistan region of Iraq
Oil Search hits pay with Iraqi probe
Australian-listed oil and gas producer Oil Search has found oil in an exploration well in the Kurdistan region of Iraq.
Oil Search said production tests conducted at various depths of the Shakal-1 well flowed at between 750 and 950 barrels per day of oil, which has an API gravity of about 35 degrees.
Further production would be required to determine stabilised flow rates and the extent of the reservoir, Oil Search said in a statement, adding that preliminary tests were suggesting some complexity in the reservoir's geology.
Shares in Oil Search, which raised $820 million on Monday, shed 2.7% to A$6.13 a barrel, compared with a broader index down 0.53%, reported Reuters.
Oil Search, a partner in the ExxonMobil-led liquefied natural gas project in Papua New Guinea, has estimated that the Shakal Block has the potential to contain recoverable reserves of some 250 million barrels.
Oil Search holds a 15% stake in the field, which is operated by privately-owned Shakal Production.