Madalena Ventures Inc. on behalf of its wholly owned subsidiary, Madalena Ventures International Inc. announced that Storm Ventures International Inc. (acting as contractor and the National Oil Company, Entreprise Tunisienne D’Activites Petrolieres (ETAP) as a holder of the Remada Sud Permit) has received the preliminary test production results from the TT2 oil discovery on the Remada Sud Permit in southern Tunisia.
A successful workover was completed on this well during the month of February 2009. Following this workover, test production facilities were set up on March 22, 2009 and test production commenced. The well is flowing from the Ordovician zone at a depth of 1422 meters. At the present time the well is flowing approximately 230 barrels per day of 43 degree API at well head pressure of 100 psi with the water cut averaging 1%. The oil is presently being trucked to the La Skhira oil terminal on the coast of Tunisia.
The ongoing appraisal plan currently includes a 3D seismic survey and a minimum of one step out well. This plan together with the six month production test will be key to preparing a phased development plan for submission to the Tunisian authorities late in 2009. This light oil discovery has been independently assessed by Paddock Lindstrom & Associates Ltd. to have in excess of 170 Mmbbls STOOIP assigned to the overall structure. The discovery of light oil in a large structure at relatively shallow depths on the eastern side of the 1.2 million acre block confirms the presence of a mature source rock and effective hydrocarbon migration route increasing the chance of success for several other prospects identified on the block. The TT2 well was drilled on a large Ordovician structure which has an aerial extent of approximately 70 square kilometers and a hydrocarbon column of approximately 57 gross meters.
