Edirne-2 Licence (AR/EXT/4346)
95-99% methane natural gas
Shallow reservoir (300-1800 m.)
High porosity (17-25%) and permeability (0.1-25md)
High Potential of recoverable gas
Easy market access and low cost surface facilities
Established infrastructure with proxy to pipelines
Brent referenced pricing mechanism
Quick PB period and high NPV
Extrem Energy Inc. is in process of drilling new wells in the Edirne licence. Extrem, holds 100% interest in the 23.970 hectares of Edirne Block. The block is located in north of the city of Edirne at the westernmost part of Thrace basin of Turkey.
Turkey has an attractive tax/royalty system with exploration incentives.
On September 6 2007, Merty Energy was awarded License AR/MER /4346 by Turkish Government. Later in 2009 Merty following the foundation of Extrem Energy transferred its 100% interest to Extrem Energy.
For the purpose of explration activities, Edirne-2 licence can be considered in two parts: West Edirne and East Edirne.
LICENSE TERMS AND HISTORY
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.
Extrem Energy being controlled by Merty energy holds the licence 100 %.
Thrace basin is the most known gas bearing basin in Turkey. The fields in the basin produces about 90% of the gas produced in Turkey since 1985.
Minor Commercial quantities of 34 API gravity waxy oil and 40-55 API condensate is also produced in the basin. Acknowleding that the deeper parts of the basin is not explored yet as well as the 60 % of the basin still awaits for further exploration.
The sedimantary succession presents major fluvial and deltaic sandstones, shales and minor fractured shallow marine limestones up to 9000 m thick sedimentary deposits.
The basement is a Paleozoic-Mesozoic crystalline complex.
Source rock intervals are Early Eocene, Upper Eocene and Oligocene respectively.
The reservoirs are 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 Pliocene shales and mudstones that create regional The sedimantary succession presents major fluvial and deltaic sandstones, shales and minor fractured shallow marine limestones up to 9000 m thick sedimentary deposits.
The Thrace basin is well known being the cradle of the first commercial gas production from Middle Eocene clastics. Edirne licence is the western neighbor to the former Edirne licence of Merty Energy where 9 gas fields discovered by Merty Energy are still in production.
There are two old wells drilled to the southeast of the licence area. They are Edirne-1 and Muratçalı-1 wells. The wells have tested oil in the reefal limestones as well as some gas shows recorded .
The first well drilled by Extrem Tunca-1 had been abondoned as gas well to be tested. On the other hand shallower zones to the west of the licence found to be more promising for the next step of drilling campaign. The well depths are 400-700 m. The Doganca prospect in the western part of the licence is a big structure showing gas amplitudes both in seismic and the GORE geochemical survey done in the area. The Doganca prospect covers 5.9 km2 and expected reserves are in the range of 923 million m3
The detailed seismic interpretation lead to some other prospects in the licence. However specially the eastern part of the licence requires further seismic definition to be explored.