Gulfsands Petroleum(LON:GPX) will kick off an initial five well drill programme in the Rharb basin in Morocco in September.
The AIM quoted firm has now hired a drill unit for a minimum of nine wells; the other four wells will be drilled from the second quarter of 2014 onwards.
The programme will focus on shallow gas anomalies, at depths between 1,000 and 1,650 metres, which are similar to adjacent commercial discoveries.
Gulfsands said the targets will be selected with the help of the data from the new 3D seismic that is currently being carried out.
Each well can be drilled in about 25 days and the mobilisation time between well is estimated at seven days. A successful hole has an estimated cost of US$2.5mln, while a dry hole has a cost of about US$1.75-1.9 mln.
“We are very pleased that the company has been able to begin its operations in Morocco so soon after the acquisition of these assets which was only completed in mid-January 2013,” said chief executive Mahdi Sajjad.
“We are now very focused on making a success of our Rharb drilling programme and to the early commercialisation of the gas resources we are targeting.”
Additionally, Gulfsands is also carrying out 2D seismic on the Fes permit. The results are expected by the end of the year and will help inform a three well programme next year.
Deal GPX at Proactiveinvestors preferred broker
Losses can exceed your initial deposit
By Jamie Ashcroft
