Deventci-R1, A-Lovech block, North-West Bulgaria
The second half of 2009 saw Liberty Energy enter into a Purchase and Sales agreement to acquire rights to a rich natural gas property situated in North-West Bulgaria, 130km from the capital city Sofia.
Based within the A-Lovech exploration block which covers 1,830 square miles (or 1,171,200 acres) of the East European country, the property contains the deepest well drilled in Bulgaria for the past 30 years.
The well encountered gas saturated reservoirs in the Dolni Dabnik member of the Middle Triassic Doirentsi formation, with further potential reservoirs in the Upper Triassic Rusinovdel and the Lower Jurassic Ozirovo formations. In total, this gas deposit has a capacity of around six billion cubic meters.
Initial results indicate that the gas and natural gas condensate found at the site to be of exceptionally high quality with low sulphur content.
Known as Deventci-R1, this primary well sits on a 15-20 sq km geological feature known as the West Koynare structure, reaching a total depth of 5,888 meters (19,313 ft.) into the Lower Triassic Alexandrovo formation.
With bottom-hole pressure of around 11,500psi, this is the highest pressured gas reservoir to be identified in Bulgaria.
Looking to the future, Liberty Energy’s agreement entitles the company to royalty interests on all future revenues and reserves located on the block, at no further cost to us.
It is anticipated that the development will be tied in with the nearby Aglen field and first sales are expected in 2011, on completion of the pipeline. Following this transaction, Liberty Energy plans to continue searching assets in Bulgaria and surrounding European regions with a view to engaging in similar low risk opportunities.