Alaşehir Development & Exploration Project | Merty Energy

Alaşehir Development & Exploration Project

Context and Introduction

Western Turkey  is hosting several onshore Tertiary basins  where a world class lacustrine-deltaic   source rock  exists ,  matured  and expelled  oil. First oil has been proven within flow tests in Alasehir-1 well  in 2000. After  Alaşehir-1 and Sarıkız-1 which are initial oil discovery wells drilled  in 2000 and 2001,  Merty  drilled Sarıkız-2 in 2009 and started productiion in early 2010.




High Quality Crude ranging between 30-55API

No sulfur or sour content

Shallow reservoir (1300-1800 m.)

High Porosity (17-25%) and Permeability (0.1-250md)

State registered and approved reserves 1.64MM bbl ROIP

Potential of development up to 55 MM bbl ROIP

Ready Surface Facilities capable of 5000bbl/day

Established infrastructure with proxy refinery

Ready Sales contract

Brent referenced pricing mechanism

Quick PB period and high NPV


Current Status

Extrem Energy Inc. is in process of apprasisal and development of Sarikiz Field. Extrem, 100% owned by Merty Group, holds 80% and Petrako holds 20% interest in the 49,339 hectare of Alasehir Block. The block is located in SE of Izmir on the southwestern Turkey, 125km away from Turkey’s largest refinery.

The operator estimates up to 55  million BOE Recoverable Oil in Sarikiz , Alaşehir fields and Baklacı Prospect.

Turkey has an attractive  tax / royalty system with exploration incentives.


As of today Merty Energy holds 100% control of Extrem Energy and gross 80% of the License. Minority partner, Petrako, in the License


Turkey has attractive fiscal terms, under a tax royalty system, with a gross royalty of 12.5 percent and corporate tax rate of 20 percent. Each license has a term for four years and is renewable twice for a period of two years per renewal. Exploitation licenses are granted for a period of 20 years, and may be extended twice, each extension maximised to 10 years.

Refineries are obliged to purchase any locally produce crude oil at the world market price as per the Law. Current prevailing selling price of 37API crude is averaging 2-3% lower than benchmark IPE Brent price.

In the license up until now, more than 500km seismic data acquired and processed, two wells drilled and another one sidetracked by Merty Energy in addition to two existing wells.

Sarikiz-2 well was drilled in 2008, and produced approx. 200bbl/d net oil on test, establishing the presence of producible oil in the Alasehir Basin. 8  wells have been drilled to date, all of which produced oil shows, and some oil has been produced on test

Sarikiz-2 well is first to produce oil in the Alasehir Basin, and in south western Turkey. The well has demonstrated an active petroleum system highly likely that there are oil field present in the Basin, with similar lacustrine basins nearby which contain similar hydrocarbons.

Merty Energy has enlarged his acreage in the area with new acquired exploration licenses following the significant upside potential of Sarikiz Field.


Western Anatolia is one of the most seismically active and rapidly extending regions of the world. It is dominated by E-W trending grabens demonstrated in the Edremit, Bakircay, Kutahya, Simav, Gediz, Kucuk Menderes, Buyuk Menderes and Gokova regions. Present also are several NNE-NNW trending grabens in the Usak, Selendi, Demirci, Gordes and Soma Structures are both Neo-tectonic and Post-tectonic.

Commercial quantities of 31-37 API gravity oil and condensate have been recently discovered in the Sarıkız-2 and Sarıkiz-3 wells after the oil tests done in Sarıkız-1 and Alasehir-1 wells that were drilled by TPAO (state oil company of Turkey) priorly.

The block presents major fluvial and deltaic sandstones, shales and minor fractured lacustrine limestone which is generally taken as a key horizon in the seismic interpretation of the basin with over 3000 m of sedimentary deposits.

The basement is a Paleozoic-Mesozoic crystalline complex.

Source rock is Early-Miocene in age with well laminated lacustrine shales and shows high organic richness (TOC= 1.68-6.63), high quality organic matter (HI=404-812) and sufficient maturity.

The reservoir is deltaic and fluvial sandstones of high porosity (15-25%) and permeability (0.1-25 darcys), with intra-formational shales alternating with sandstone forming the several layers of seal, as well as the Pilocene shales and mudstones that create regional seal in the area.

Field observations and surface GORETM geochemical survey suggest that generated hydrocarbons exist in the subsurface

Initial Results

The Sarıkız-2 well and long term tests performed in the well suggested a proven reserve of a minimum of 1.64 million barrels of recoverable oil in the well and roughly 11.4 million barrels of recoverable oil in Sarıkız structure. The amount have been registered by the state authority GDPA which controls and registers countries hydrocarbon reserves. This registered and proven reserve figure is taken as the Worst Case Scenario reserve in the field.



Based on this background knowledge, and detailed evaluation of existing geological and geophysical data new drill sites had been prepared to appraise the oil discovery in Sarıkız-1 and Sarıkız-2 wells and increase the proven reserves. Extrem generated Sarıkız-4 well to be drilled as the first well to be drilled. Existing geophysical and geological data had been studied thoroughly and Sarıkız structure had been mapped. The extent of the Sarıkız field is approximately 5.4 km2, 4.5 km2 with the shape factor applied.