Merty Energy Spuds Thrace Basin Well

Drilling has begun on the Catalca licence, near Istanbul in Turkey, the licence partners have reported, with the Tertiary Osmancik formation targeted at the well site.

The Baglar-1 well, which is being drilled within the producing Thrace Basin, will be drilled to a depth of 800 metres, Azure Resources has said. Azure Resources is a joint venture operator of the well, holding a 45 per cent stake. Turkish seismic surveyor and gas and oil producer Merty Energy is the second partner in the venture, holding the remaining 55 per cent stake.

Seismic surveying has already been conducted on the well, with 112 kilometres of 2D seismic conducted on the 36,429 hectare licence. The current drilling programme for the licence includes two wells, farm-in partner Emperor Oil says.

Though Azure Resources and Merty Energy are the joint venture partners on the licence, Emperor Oil is a farm-in partner with Azure Resources. Through a deal with Azure Resources, Emperor holds a 22.5 per cent stake in the licence (half of Azure's 45 per cent stake).

In a statement, Emperor Oil said that it expects the well to be profitable should gas be produced, given high gas prices in the Turkish market. Additionally, the close proximity of a pipeline to the well will help to keep operating costs down.

"We are very optimistic about this programme since we are working with an experienced team, in a highly prolific region that boasts an extensive amount of infrastructure, including an existing pipeline located approximately five kilometres from the project," President and CEO of Emperor Oil Andrew McCarthy said.