Gross 2P reserves
bopd gross production in H1 2016
The Taq Taq licence area, with gross 2P reserves standing at 172 mmbbls, is situated in the Zagros basin where large, elongated anticlines dominate. The Taq Taq licence area is located 60 km northeast of the Kirkuk oil field and the adjacent city of Kirkuk, 85 km southeast of the city of Erbil and 120 km northwest of the city of Sulaimaniah. The gross area of the Taq Taq licence area is approximately 951 square km.
The Taq Taq field has been producing since 2006. As of 31 December 2015 the field had produced 184 mmbbls.
Gross remaining recoverable 2P reserves at 31 December 2015 were estimated at 172 mmbbls by McDaniel in its technical reserves assessment dated 27 February 2016. The proven plus probable plus possible (‘3P’) reserves at 31 December 2015 were assessed by McDaniel at 416 mmbbls.
The Taq Taq field produced an average of 68,800 bopd in H1 2016, a 46% decrease compared to H1 2015. 62% of production in the first half was supplied to the KRG for export via the KRI-Turkey pipeline. A further 34% was supplied to the Bazian refinery, with the remainder sold into the domestic KRI market.
In the third quarter of 2016 two side-track wells, TT-27x and TT-07z, were successfully drilled and completed during the period, partially offsetting the decline from existing wells. A third side-track, TT-16y, is in progress and expected to be in production shortly.
Through development drilling and reservoir management, the focus at Taq Taq remains mitigating field declines and reducing the concentration of production from the crest of the field.
The Company is currently in the process of preparing a revised Field Development Plan (‘FDP’), which is expected to be completed around year-end. The revised FDP will establish the next phase of the development plan, notably with respect to new development well locations and the overall reservoir management strategy, while also identifying necessary resources and technologies required to implement future activity. In advance of the FDP completion, a tender has been initiated to procure a more powerful drilling rig for the start of 2017, which would provide greater optionality around development drilling at Taq Taq.