Operations
CYGAM OPERATIONS:
TUNISIAN PERMITS:
Sud Tozeur Permit
On May 18, 2004, Rigo applied for the Sud Tozeur Permit as a prospecting licence and the application was officially granted on February 24, 2005 for an initial two year period. Rigo is the operator and has a 100% interest in the permit. The block is located onshore west central Tunisia, near the Algerian border and comprises 4,380 square kilometres (1,082,283) acres. The prospecting permit carries an obligation to re-interpret all existing seismic data and acquire 50 kilometres of new seismic lines. On or before the expiry of the two year term, Rigo will have the option to withdraw or apply for a four year exploration permit, with an obligation to drill a well.
Extensive seismic coverage on this block had outlined a very large structure which was drilled in late 1997 by the previous operator. The well, SN 1, was drilled to a total depth of 4677 metres and encountered numerous oil and gas shows in the Triassic, Ordovician and Cambrian during drilling operations. A core, cut at the Triassic-Ordovician interface, was oil bearing. The well was tested after it reached total depth and production casing was set. Perforations in the casing failed to produce hydrocarbons, likely because the heavy drilling fluids and cement invasion caused damage to the various formations. A similar situation has been reported in the giant Hassi Messaoud field in Algeria where all the producing wells have been completed “open hole” after a few initial wells perforated through casing failed to produce hydrocarbons. A detailed log evaluation commissioned by Rigo Oil in 2005 indicates that several intervals in the Triassic, Ordovician and Cambrian are hydrocarbons bearing.
After additional seismic interpretation and reprocessing, currently being done in Calgary, Rigo will likely re-enter the suspended SN 1 well. The company plans to cut a ”window” in the production casing, at approximately 3800 metres, and to drill a deviated well in a direction which may encounter a thicker section of Triassic and Ordovician reservoirs.