The Kurdistan Regional Government of Iraq (KRG) has formally approved HKN Energy’s Sarsang development plan, which is scheduled to increase production to 50,000 barrels of oil per day.
HKN has also confirmed the East Swara Tika-1 well, drilled adjacent to the Swara Tika structure, is commercial.
The company conducted extensive testing on the East Swara Tika-1 well bringing oil to the surface with aggregate rates exceeding 8,000 barrels of oil per day.
“We are pleased with the approval of our Development Plan and eager to proceed with the next phase of our program,” said chief executive Russell Freeman.
“The recent commercial discovery on the East Swara Tika Prospect is exciting and representative of the tremendous potential of the Sarsang Block. We appreciate the support from the KRG as we continue to grow our operations.”
HKN began commercial production of the Swara Tika-1 well in June 2014 and has since produced in excess of 1.5 million barrels of oil which have been sold into the local market.
Due to the commerciality of East Swara Tika-1, HKN has submitted a proposed amendment to the Sarsang Development Plan to include that prospect.
HKN holds a 42% participating interest in the Sarsang Block. The other Sarsang contractors include Marathon Oil KDV B.V. and Maersk Oil Kurdistan A/S, holding a 20% and 18% participating interest, respectively. The remaining interest in the block is held by the KRG.
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