GDF Suez Makes New Natural Gas Discovery in Algeria

GDF Suez (EPA:GSZ) announced it made a new natural gas discovery in the Illizi Basin in Algeria.

As quoted in the press release:

The TESO-2 well was drilled to a depth of 1,307 meters in the Ordovician reservoir. A successful  test produced a gas flow of 175,000 cubic meters per day. Appraisal work will be conducted later to assess the size of the discovery.

TESO-2 is the first well of the second exploration program carried out under this licence, which started in January 2015. The drilling program includes at least four additional appraisal wells. Two discoveries had been made during the first exploration phase in 2012 and 2013 respectively with the TIHS-1 and TDE-1 wells.

GDF SUEZ holds 20 percent of the Sud-Est Illizi licence alongside the operator Repsol (52.5 percent) and Enel Spa (27.5 percent). SONATRACH will participate with a 51 percent stake in the development and production phases.

The Sud-Est Illizi licence is the second project of GDF SUEZ in Algeria, after the Touat project that is currently in development phase, with a 2017 production target. Located in southwest Algeria and operated in partnership with SONATRACH, Touat is a major natural gas production project for GDF SUEZ, with proven and probable reserves of 68.5 billion cubic meters, plus 8.5 million barrels of condensate.

Click here to read the full GDF Suez (EPA:GSZ) press release.