Kurdistan: Sangaw North
| Location | Kurdistan (Northern Iraq) |
| Area | 492 km² |
| Sterling Equity | 53.33% (Operator) |
| Partners | Addax 26.67%, KNOC 20% |
The Sangaw North-1 exploration well, commenced in 2010 was drilled to a total depth of 4,190m into the Triassic aged Kurra Chine formation and in the current reporting period three flow tests were conducted across intervals between the Triassic aged Kurra Chine and the Cretaceous aged Kometan formations. Gas was produced, along with formation water, in all five of the flow test conducted at rates that are not commercial and the well has been plugged and abandoned.
Following the identification of the remaining exploration potential, the joint venture partners entered the second sub-period of the exploration phase of the PSC in November 2011, with a duration of 2 years to November 2013. The work commitment for the first period had been fulfilled by the drilling of the Sangaw North-1 well.
With the integration of the 2D seismic acquired in 2009 and the Sangaw North-1 well information within the geological interpretation, the joint venture partners have elected to acquire additional 2D seismic data to better define a possible secondary target along the flank of the main structure. The Company has completed tendering for seismic acquisition services and is ready to award a contract, subject to the approval of the Ministry of Natural Resources. The Company plans to acquire the 2D seismic data during the second and third quarter of 2012 and this may lead to the drilling of an exploration well in 2013.
