Context and Introduction
AR / MER / 4639, 4640, 4704 Manisa, Salihli and Durasili exploration Licences (namely called Manisa licences) of Merty are located on the east-west trending assymetric Alaşehir (Gediz) Graben and totally covers 1194 sq-km area. Since 2006, in Alaşehir block Merty alone has implemented a great amount of exploration and development works (191.05 -km new 2D, re-processining of 182.8 km older 2D, Gore surveying and drilling 2 wells and re-entering & testing of various wells) and established production facilities on the Sarıkız-2 discovery well. Along with the Alaşehir block, Merty has persisted its exploration work in the Manisa blocks (Manisa, Salihli and Durasilli); available sparce 2D seismic (59 km) are interpreted and combined with the geolologic and gravity–magnatic data (more than 5000 gravity –magnetic measurements collected since 1994) to better understand the basin geometry and configuration. Merty has also integrated well data of Taytan-1 and Soyak-1 (with strong oil shows) drilled by Geothermal Operators.
The Exploration works in the licences are ongoing. The 2012 work program is as follows:
Excellent lacustrine source rock with great efficiency
High API oil (30- 38 API) without any sulfur content
Shallow multiple reservoirs in shallow depths (600-2000 m.)
High Porosity (17-25%) and Permeability (0.1-25md)
Diverse traps both structural and combination type
Easy market access and low cost surface facilities
Established infrastructure with proxy to pipelines
Ready Sales contract
Brent referenced pricing mechanism
Quick PB period and high NPV
Within the W-E extending Alaşehir (Gediz) Graben, there are four exploration licence blocks. They are namelly called from west to east Manisa (AR/MER/4639), Salihli (AR/MER/4640) and Durasali (AR/MER/4704) (within these wells Merty holds 100%) and Alaşehir (AR/PTK-EXT/3846) (Merty 80% and Petrako 20%). The first three were awarded to Merty Energy on November 2009 and 2010.
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.
Plio-Miocene graben fill sequence is made up of three tectonostratigraphic packages, These are Lower and Upper Miocene ,and Pliocene sequences. Lower and Upper Miocene clastics and associated llacustrine shales correspond to early to mid stage of rifting .Fairly coarse clastics of the Pliocene most likely reflects the closing stage in the rift evolution. The Alaşehir graben is well defined with respect to its existing hydracarbon system. Working in-situ hydrocarbon system is Miocene; components of source, reservoir /seal pairs are respectively lacustrine shales or mudstones and fluvial-to- alluvial origin wedge-like coarse to fine clastics enclosed or encompassed with low-energy products of fine clastics forming intraformational sealing unit. Lower Miocene lacustrine shales are the mature source rocks and often sssociated with the lacustrine limestones.
Alaşehir graben, although narrow and assymetric in N-S direction, and deepens to the east along its axis. Even well data indicate that more than 3000-m-thick Neogene sequence is recently drilled in the Taytan-1 well in Salihli block 4640 . The entire basin has high heat flow regime: Even a local heat source could generate significant amounts of hydrocarbons from organic – rich lacustrine shales at even relatively shallow depths. Basin analysis indicate that lower part of the Lower Miocene Alaşehir formation shoud have started generating hydrocarbon 13.3 million years (Late Miocene) before present time and has still continue to the generation present time.
In the entire blocks of Merty. Trap types are diverse in type, size and magnitude will be explored in the roll-over anticlines, alluvial fans associated with block faults and fractured lacustrine limestones with themost of the new data to be provided in 2012.
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.
Through the studies performed in Alaşehir, Manisa and regional scale, the local and overall stratigraphy, source rock characteristics and basin evaluation of the entire blocks are well understood by Merty. The sedimentary units are divided into three sequences. IGood-quality, lacustrine-origin mature source rock exists in the the Lower to Middle Miocene sequence .They are characterized by high TOC (1.2 % to 6 % ) , high HI (up to 500) , moderate to high Tmax (429 to 434) and SCI value ( 3.0 to 4.5) and I and II Kerosene types. These source rocks are both interfingered with and unconformably overlain by coarse grained fan and stream flow deposits good candidiate for reservoirs with high porosity 25 % and good permeability (0.1 – 10 md).
Basin Modeling analysis proves that Alaşehir Formation shows convenient maturity values and bruil history at approx 1500m/120 0C to produce good quality oil. On the bases of available data collected and evaluated so far, Merty is very interested in exploring the area as well as the area to the aest and will continue exploartion compaign with the additional to be collected in 2012.
200 kms 2D seismic and GORE™ Survey exploration works will be done to investigate the structures and to compare the petroleum potential between the Sarıkız Oil Field and Manisa Concession.