Winstar Resources Ltd. Seeks Joint Venture Partner for the Ech Chouech Production Concession in Southern Tunisia
Winstar Resources Ltd. (Winstar Tunisia B.V.) ("Winstar") has initiated a process to offer up to 50% of its 100% working interest in the Ech Chouech Production Concession (the "Concession") and has retained CIBC World Markets Inc. ("CIBC") as financial advisor. This opportunity is available, either by earning an interest through a prescribed work program (farm-in agreement) or through a cash purchase.
The primary opportunities are high deliverability oil and gas production from both Silurian and Triassic reservoir rocks. Winstar has very recently acquired 3D seismic over the entire Concession which has been processed by two independent processing firms.
Industry drilling success rate using 3D seismic is approximately 80%. Industry average Silurian discoveries have 4,000,000 boe recoverable reserves and 6,200 boe/d initial test production per well. (Reference: Wood Mackenzie).
Ech Chouech is south east of the Chouech Essaida Triassic Oil Field. The Chouech Essaida Triassic Oil Field is currently producing 1,200 boe/d and has cumulatively produced over 4,200,000 bbls of 42° API oil and 6.2 Bcf of solution gas. Offset field data indicates the average Triassic well has 1,500,000 bo recoverable reserves and 650 boe/d initial production.
The Ech Chouech Concession produces from Ech Chouech 1 ("EC-1") which is a naturally flowing well which to-date has produced 200,000 boe, from the Devonian Ouan Kasa formation. Current water free production is approximately 100 boe/d (85% 42°API low sulphur crude oil, 15% solution gas and no free water).
RPS Energy completed an evaluation report of the reserves which will be available for review. RPS Energy has assigned Proved plus Probable remaining reserves of 120 Mboe.
The Concession receives world price for its crude oil and natural gas is priced in relationship to low sulphur heating oil (July/August 2009 price: US$7-$8/mcf). The Concession currently pays no income tax (35% flat income tax when applicable) and a flat 15% royalty.
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