Dana Gas, a natural gas company in the Middle East, has announced that its share of hydrocarbon reserves at Pearl Petroleum Company’s Khor Mor and Chemchemal Fields in the Kurdistan Region of Iraq (KRI) have increased by 10 per cent following the recent certification of reserves by Gaffney Cline Associates (GCA)
2P Reserves Upgrade
The independently audited report prepared by Gaffney Cline on behalf of Pearl Petroleum showed that the total share for Dana Gas (35 per cent shareholder in Pearl Petroleum) is equivalent to 1,087 mmboe, up from 990 mmboe when GCA first certified the fields in April 2016.
This confirms that the fields located in the KRI could be the biggest gas fields in Iraq, the company stated.
Patrick Allman-Ward, CEO of Dana Gas, said, “The Gaffney Cline report has independently confirmed Dana Gas’ 2P reserves in our KRI assets at more than one billion barrels of oil equivalent and our belief that the Khor Mor and Chemchemal Fields will most likely be the biggest gas fields, not just in the Kurdistan Region Iraq, but the whole of Iraq, making them world-class assets.”
“It is also satisfying to see that our auditors have formally booked oil reserves for the first time in Khor Mor. We believe that this is just the tip of the iceberg confirming our estimate of oil resource potential of over seven billion barrels. These additional resource declarations will underpin our future development plans which will provide a reliable source of energy to meet the needs of electricity generation as well as industrial development in the region,” he added.
Earlier this year, Pearl Petroleum signed a 20-year gas sales agreement with the Kurdistan Regional Government to facilitate the production and sale of an additional 250 mmscfd of gas. Pearl Petroleum’s expansion plan will see the current 400 mmscfd increase in output to 650 mmscfd in 2022 and then to 900 mmscfd by 2023.
With the price of oil ranging between US$60 to US$70 per bbl, each of these two new gas production trains will generate between US$175 to US$200mn to the company’s share of revenue and project’s cash flows per annum.