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Gulfsands Petroleum and ADX assessing Lambouka-1 gas discovery potential

Gulfsands Petroleum (LON:GPX) and its joint venture

partner ADX Energy (ASX:ADX), confirmed that the Lambouka-1 exploration well discovered two hydrocarbon bearing zones in the Aboid Formation.  However technical problems relating to wellbore deterioration have raised questions over the joint venture’s next move.

ADX said the nature of the hydrocarbons is likely to comprise of gas and possibly condensate in the lower interval based on the hydrocarbon shows recorded from the cuttings while drilling and gas chromatography.

Due to technical reasons the gas shows were not as strong as encountered in the same Abiod interval in the nearby Dougga-1 discovery, but no carbon dioxide (CO2) was detected while drilling the Abiod Formation unlike in the Dougga-1 discovery, the company said.

As a result of ongoing drilling fluid losses and increasing well bore deterioration it has not been possible to safely recover fluid samples or pressure data from the Abiod formation.

The company said ongoing operations in the existing well bore have become increasingly difficult and the productivity of the reservoir from this well bore is very likely to have been adversely effected.

Consequently, this has diminished the operator’s ability to obtain representative flow rates from any drill stem test.

The joint venture is currently considering whether to suspend or plug and abandon Lambouka-1.

ADX noted that the Lambouka structure also has further up dip potential from the Lambouka–1 location.

It is therefore possible that a future bore hole trajectory for the lower section of the well could also test the up dip potential of the structure, together with the porous sandstones encountered in the lower part of the well.

The decision will depend on an assessment of whether a suspension and future re-entry of this well would provide the best opportunity to minimise rig time and maximise reservoir information to be acquired from a drill stem test of the Abiod Formation.

ADX said the results described are preliminary in nature and it will continue to interpret the data obtained from the Lambouka-1 well in conjunction with seismic data and provide further assessments of the potential of the Lambouka discovery.

Participants in the Lambouka-1 well are ADX 30% Operator, Gulfsands Petroleum Plc (LON: GPX) 30%, Carnavale Resources Ltd (ASX: CAV) 20%, XState Resources Ltd (PINK: XSTLF) 10% and PharmAust Limited (ASX:PAA) 10%.