Oil Search has interests in two blocks in Yemen, Block 3 (37%) and Block 7 (32%). This follows the sale in 2008 of Oil Search's interests in five blocks in Yemen, including its interest in the Nabrajah oil field, to Kuwait Energy Company. Blocks 3 and 7 were retained as Oil Search believes they contain considerable upside potential.
In 2008, an 800 square kilometre 3D seismic survey was carried out over parts of both blocks adjacent to the block containing the Habban field which is being developed by OMV. Habban has estimated 2P reserves of >100 mmbbl and produces from fractured basement, a recent and exciting play in the Shabwa basin. Oil Search plans to explore for this play in the same trend as the proven field, with wells planned to be drilled in mid- 2009 and in 2010.
The Tubb’a-1 well in Block 3 (Oil Search 60%, Operator) reached a total depth of 2,808 metres in late October having drilled 646 metres of the basement, which was the primary target. Drill-stem testing was carried out over the entire basement section and 20 metres of the overlying clastic and carbonate section. The well flowed gas and condensate without stimulation at a stabilised rate of 14 million standard cubic feet per day and 500 barrels of condensate per day. The results of the testing continue to be analysed and a number of other studies are underway to assist in the evaluation of this discovery. The well has met the drilling commitment for the first exploration period of Block 3. The Al Meashar-1 well (Oil Search 34%, Operator) spudded in November 2009. It is located in Block 7, to the north-east of the Tubb'a-1 location in the adjacent Block 3 and is targeting the same fractured-basement play. At the end of the quarter the well was drilling ahead.