Corporate Info


Gallo Oil
Since 1997, the Company operates two oil and gas exploration concessions in Yemen through Production Sharing Agreement (PSA) with the Ministry of Oil and Mineral (MOM) of the Republic of Yemen. The two concessions, namely Block R2 and Block 13, are operated by Gallo Oil (Jersey) Ltd. (Gallo Oil).
  • Block R2

Block R2 is located in East Al Maber area, Hadramaut territory. In this block Gallo Oil has 50% operating shares. From the geological point of view, Block R2 lies on Jahi high, a main WNW-ESE trending basement high that separates two major Jurassic rift basins namely Wadi Al Ain and Wadi Saar to the North and the Wadi Hajar basin to the South- Southwest. After its first relinquishment, Gallo Oil retains the area that covers 2,139 square kilometers, the area that has hydrocarbon potential. In this block Gallo Oil has drilled six exploration wells.

Four of them indicated promising hydrocarbon potentials. But the test results indicated that the hydrocarbon in these wells were non-commercial. However, Gallo Oil is still optimistic to find commercial hydrocarbon in this block. Gallo Oil’s optimism is based on the follow-up of internal study of data from well log analysis, cutting analysis, seismic inversion analysis and the results of laboratory analysis of the wells drilled.

Following analyzes of those data, Gallo Oil has come up with a new exploration concept that is called sequence seismic stratigraphy method by using seismic inversion data to further explore the Block R-2, with the Qishn Clastic reservoir as a main target as well as basement fracture formations as a secondary target. Gallo Oil plans to drill one exploration well.

  •  Block 13

Block 13 is located in Wadi Al Armah area, Al Mahara territory, and Gallo Oil has acquired 100% operating shares. Geologically, Block 13 concessions are located in the Jeza basin. After its first relinquishment, Gallo Oil retains the area that covers 5,563 square kilometers. In this block Gallo Oil has drilled three exploration wells, namely: Al Rizq#1, Al Barakat#1, and Al Rizq#1A/B sidetrack. From the three wells drilled, two wells; Al Rizq#1 and Al Rizq#1A/B sidetrack indicated the presence of significant gas with high pressure and high temperature (HPHT). From the result of side tracked drilling of Al Rizq#1A/B well, it proved that the prospect gas reservoir reached a radius of one kilometer continuously. This encouraging result leads the Company to believe that there is a huge gas accumulation beneath in the block.

As a follow up of the gas prospect, Gallo Oil conducts Geological and Geophysical (G&G) detailed study related to fracture reservoir by utilizing regional tectonic, structure, logs, seismic, gravity and magnetic data in order to understand the development of natural fracture that contains gas. The detailed study is focused on Shuqro Formation and basement layers where the gas is found and trapped.

The Company will continue its exploration effort by drilling more wells and conducting a G&G advanced study to delineate the gas prospect and put it into production soon.


 

 
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