Eurasia Energy Prepared for Talks with SOCAR on Offshore Field

Oil&Gas Materials 11 December 2006 15:00 (UTC +04:00)

The State Oil Company of Azerbaijan (SOCAR) informed Trend that Eurasia Energy is prepared for commercial talks over Exploration, Rehabilitation, Development and Production Sharing Agreement ("ERDPSA") on Alat-Daniz field.

The company concluded necessary survey for the development of a plan on the offshore field development. The efficiency term of a Memorandum of Intention between SOCAR and Eurasia Energy is near the end, but it can be extended.

The SOCAR has provided Eurasia Energy with geological-geophysical materials on Alat-Daniz Offshore Field and the company conducts study for the estimation of economic constituent of the project.

In September managers of the Company, representatives of TRACS International Consultancy Ltd. and Genesis Oil and Gas Consultants Ltd. paid two visits. During the visit they hold meetings with the leadership of the SOCAR, geologists and engineers, held inspection of platforms in the field, pipelines and specialized vessel.

The Block includes the production of Alyat-Deniz oil and gas field and a string of seven prospective exploration structures (Hamamdag-Deniz, Garasu, Sangi-Mugan, Ulfat, Aran-Deniz, Dashly and Sabayil) moving in a south-easterly direction from the coast to seventy kilometres offshore.

Eurasia Energy Limited attracted TRACS International Consultancy Ltd. and Genesis Oil and Gas Consultants Ltd. to advise and consult with management of the project.

Water depths are predominantly up to twenty metres and reach a maximum of fifty metres at the far end of the Block. The Aylat-Deniz field was discovered in 1983 and until mid-2006 had produced approximately 12.5 million barrels of oil and 1 billion cubic metres of gas.

According to SOCAR, the remainder of recoverable oil reserves at Alyat Daniz comprises of 14 million barrels of oil and 1 billion cu. m. of gas. The major productive zones lie at a depth of 3700-4500m.