Tunisia is an established oil and gas producer with a long-established history of successful production operations since 1966. The country benefits from a low OPEX environment and the presence of many world-renowned oilfield service companies.
Sidi El Kilani Concession (SLK) and North Kairouan Permit
Zenith has acquired the respective 22.5% working interests of KUFPEC (Kuwait Foreign Petroleum Exploration Company K.S.C.C), a subsidiary of the State of Kuwait’s national oil company, and CNPC International (Tunisia) Ltd., (Seller), a 100% subsidiary of CNPC International Ltd, in the North Kairouan permit and the Sidi El Kilani Concession.
Completion of both acquisitions is conditional on approval being granted by the Comité Consultatif des Hydrocarbures of the Republic of Tunisia.
Area: 204 square kilometres, located onshore in the Pelagian Basin, eastern Tunisia, circa 190 km south of Tunis, in the Governorate of Mahdia.
SLK was discovered in May 1989 by KUFPEC, test production commenced in September 1991 and commercial production commenced in January 1993 with an average rate of 5,000 bopd from one well.
The field reached a peak production exceeding 20,000 boepd in 1995.
Sidi El Kilani is reported to be the second largest oil field discovered in Tunisia since 1989.
The field is presently operated by CTKCP (Compagnie Tuniso – Koweito Chinoise de Petrole) with the following participating partners: State of Tunisia National Oil Company, ETAP (55%), KUFPEC (22.5%) and CNPC (22.5%).
Current production output, natural flow, is approximately 700 bopd.
SLK produces 39 API gravity oil from a fractured carbonate reservoir (Abiod Formation), at a depth of c. 1,600 metres. The reservoir characteristics are enhanced by natural fractures and locally by dolomitization.
SLK Facilities include a permanent Gas Oil Separation Plant (GOSP) and a Pipeline of 125 km x 8 diameter, 22,000 bpd capacity from the field to La Skhira terminal. Approximately 90% of the gas produced is used for on-site power generation with the rest being flared.
Current production mainly comes from 2 wells: SLK-1 and SLK-4. Well stimulation, optimisation and infill drilling have maintained production levels.
SLK has significantly outperformed production forecasts, sustaining production well beyond original expectations.
There are indications of oil present in the unexploited Bireno formation with plans proposed for the testing of its potential upside production potential.
Zenith expects to soon commission a new Competent Persons Report in compliance with Canadian securities laws, specifically the COGE Handbook and National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities, in order to obtain an updated reserves evaluation for SLK.