Context and Introduction
Merty Energy Inc. has held the Ezine licenses (AR/MER/4329 and AR/MER/4330) since 06/09/2007. Ezine basin is an unexplored basin. In the end of 2009, 190 km long 2D seismic lines and detailed geological studies were carried out together with a preliminary GORE geochem study in 2011 using 400 modules. The objective of the survey is to assess the distribution of potential hydrocarbon charge in the AR/MER/4329-4330 where source rocks of Eocene and Miocene have been detected.
AR/MER/4329 and AR/MER/4330 are owned %100 by Merty Energy Inc., These licenses are tought to have good hydrocarbon potantial as gas according to previous studies such as field observations, 190kms 2D seismic programs ,GORE™ Survey exploration works and the well drilled before. Until the end of the May 2012, Çavuşköy-1 and Pınarbaşı-1 wells will take place .
Turkey has an attractive tax/royalty system with exploration incentives.
Avaliable 190 kms 2D seismic data
GORE™ Survey exploration with 400 modules approx 90 km2
High Quality Crude ranging between 30-45API
No sulfur or sour gas
Shallow reservoir (1300-1800 m.)
High Porosity (17-25%) and Permeability (0.1-25md)
State registered and approved reserves 1.64MM bbl ROIP
Potential of development up to 11MM 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
Merty Energy Inc. Holds the licenses %100.
A new phase of work program will help the leads to be converted to prospects and drilled.
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.
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.
Onthe other hand the natural gas sales are regulated by EMRA (energy market regulatory authority) within the context of Gas market law and the petroleum law giving the local production the priority.
The gas prices developed in the market freeley within the context of competition within the gas wholesales companies and the distribution companies as well as the big consulers which the gas producer has the right to choose to sell from.
There are several mechanisms where the sale price of gas is determined by.
Ezine graben is in the appearance of a pull apart basin. The metamorphic basement, ophiolitic melange, magmatic and volcanic rocks outcrop in the north, south and west sides of the graben constitute the economical basin.
Oligocene and Miocene aged volcanites are mostly composed of basalt, agglomerate, andesite and tuffites; magmatic rocks are composed of granitoids they laterally pass to slope clastic units of the same age with their rich TOC contents often seen in the area
Lower Miocene aged Kucukkuyu formation, which outcrops in the near vicinity has high source properties. The TOC content of the unit is in between 1-5,5 %. And seem close to maturity levels even in the surface.
At Ayvacik county and its surroundings, in the southern parts of Ezine graben which is covered by Plio-Quaternary sediments, the outcropping of the upper levels of Upper Miocene aged Ilyasbasi formation shows the presence of Kucukkuyu formation, which is stratigraphically under this, at the Ezine graben.
The presence of source rock and high geothermal gradient which is caused by the intensive magmatic and volcanic activities in the region, makes the Ezine graben attractive in terms of hydrocarbon.
The results of the geochemical analyses show that Kucukkuyu formation is a good source rock with 0,7-1,6 TOC values and it has medium-high maturation. However, low HI values (below 300) and high S2 values are indicatives of the presence of mixed (Type II-III) type kerogen.
Under the circumstances, it can be thought that the unit can have a potential of oil and gas generation. The thick sandstone layers and channel sandstones in the upper parts of the unit have the characteristics of a reservoir; the intercalating shale levels have the characteristics of a seal rock. Also the formations which are under and over Kucukkuyu formation consist layers that have the characteristics of both reservoir and seal rocks.
It is thought that the faults which have formed Ezine graben have both vertical and lateral strike-slip components. For this reason, it is expected that the traps are formed primarily at the step faults on the flanks of the graben and secondarily as a closure on faults which were perpendicular to the graben as a result of lateral strike-slip.
In 2009, 190 km long 2D seismic lines were implemented and total 570 km long seismic works will be on action in future.