WEST DINDER-1

GEOLOGICAL COMPLETION REPORT

BLOCK 8
BLUE NILE BASIN

NAME POSITION SIGNATURE DATE

PREPARED BY ABDELLATIF WADIDI EXPLORTIONIST

AZUDIN M. YOUSOF SECTION HEAD BLOCK8

REVIEWED BY

ALIAS HJ SALLEH EXPLORATION MANAGER

1
CONTENTS

1. EXECUTIVE SUMMARY
2. WELL INFORMATION
3 .GEOLOGICAL SUMMARY
4. PETROPHYSICAL EVALUATION
5. GEOCHEMICAL ANALYSES.
6. BIOSTRATIGRAPHIC ANALYSIS
7. CONCLUSION

2
 Figure 1: West Dinder-1 Location Map

Block Wad Medani

9 MeMMedaniMe
dani Block
Dind 10
Rive

Block 11
er
r

Hosan-1
W Dinder-1
Whit
Rive

Dinder-1
eN
r

Jauhara-1
ile

Blue
Rive

Farasha-1
Nile
r

Block 8
Block
7
l
na
io
at
rk r N
Pa inde
D

3
1.0 Executive Summary
West Dinder-1 is the fourth wildcat well to be drilled by WNPOC in Block 8
(figure 1). The well is located at shot point 264 of line SD82-622 which
was acquired by Chevron in 1982 and reprocessed by WNPOC in 2004
and 2006. In addition, the 2004/05 seismic data acquired by WNPOC
confirmed the presence of a structure which was later named Prospect
B3.

In a meeting held on 16th July 2007, Partners had agreed to drill West
Dinder-1 as first commitment well for the second exploration period in
Block 8. Based on the results of the existing wells and the petroleum
system study conducted by EREX-Cairo in Block 8, the Blue Nile Basin
has a proven petroleum system. A 16 m net gas sand has been
discovered in Hosan-1. Dinder-1, drilled and tested by Chevron in 1983 ,
tested gas and small amount of oil. The petroleum system study also
suggest that significant amount of hydrocarbon has been generated and
expelled from the rich source rock of the Blue Nile Basin. It further
suggests presence of good catchment areas in the western slope of the
basin. As the western slope is gentler than the eastern slope, it is
expected that liquid hydrocarbon may be the dominant fluid trapped in this
area. West Dinder-1 well is proposed to test this concept.

Due to its close proximity to Dinder-1 well, West Dinder-1 is expected to

penetrate similar stratigraphic sequence but it will probably penetrate a
sandier section as it is closer to sediment source which is modeled to be
from the western flank of the Blue Nile basin.

The stratigraphic units are based on the identified litho sequence

penetrated in the existing wells; Dinder-1, Hosan-1, Jauhara-1, Farasha-1
and from sequence boundaries picked from seismic.

The primary objectives of West Dinder-1 are the Dinder-I sands and the
secondary objectives are the Dinder-II sands. The well location selected is
considered optimum to penetrate all the targeted zones with emphasis on
the primary targets. Even though the risked speculative recovery is only
0.6 mmstb of oil, the well will upgrade many surrounding leads and
prospects if oil is discovered.

The well was spudded on 17 Dec 2007 as a vertical hole and reaches final
TD of 2058 m in Dinder-II formation.

4
2.0 WELL INFORMATION
2.1 Geological Summary

West Dinder-1 is located at shot point 264 of line SD 82-622

Surface Location: Latitude: 13.381388o N
Longitude: 33.985277o E
UTM Easting: 606704m E
UTM Northing: 1479540m N
Spheroid: WGS84
Seismic Reference: SD 82-622 / SP 264
Subsurface Location: West Dinder-1 is a vertical exploration well. A 100
meters bottom hole radius of uncertainty is allowed for.
Single shot, non-directional deviation surveys
conducted at depths as per program indicates that the
maximum horizontal uncertainty at TD (2035m
MDRTE) is less than 26 meters. See table below.

Survey Section Deviation Maximum Maximum Radius

Depth Length Section of Uncertainty
Offset
(m MDRTE) (m) (degrees) (m) (m)
140 140 0.75 1.834 1.834
488 348 0.5 3.132 4.966
808 320 0.5 2.88 6.012
1064 256 0.5 2.304 5.184
1320 256 1 4.352 6.656
1657 337 0.75 4.4147 8.7667
2025 368 0.75 4.8208 9.2355

Table 1: Maximum horizontal uncertainty

5
2.2 Basic Well Data
Name: West Dinder-1
Field: West Dinder
Classification: Exploration (Wild Cat)
Type: Onshore Vertical Well
Status: Suspended
Operator: White Nile (5B) Petroleum Operating Co. Ltd
Partners: PETRONAS Carigali Overseas Sdn Bhd (77%)
Hitech Petroleum (8%)
Sudapet Limited (15%)

Mudlogging: Datalog
Wireline Logging: Schlumberger
Wellsite Geologist: Sami Mohamed Taha/ Osman Suliman
Primary Reservoir: Dinder I
Secondary Reservoir: Dinder II
Surface Coordinates: Latitude: 13.381388o N
Longitude: 33.985277o E
UTM Easting: 606704m E
UTM Northing: 1479540m N
Spheroid: WGS84

Seismic Reference: SD 82-622/ SP 264

Subsurface Location: Less than 26 meters horizontal displacement
Ground Elevation: 428.656m AMSL
RTE Elevation: 436.195m AMSL
Total Depth: 2035m MDRTE
Spud Date: 17 December 2007
TD Reached: 17 January 2008
Rig released: 22 February 2008
Borehole Design: 17 ½” hole section from surface to 31.3m MDRTE

6
 12 ¼” hole section from 31.3 to 604m MDRTE
8 ½” hole section from 604m MDRTE to 2035m MDRTE
Casing Design: 13 3/8” shoe at 31.3m MDRTE
9 5/8” shoe at 604m MDRTE
Mud System: KCl Polymer
Lost Circulation: Partial loss at the 12 ¼” hole section
H2S: None
Cuttings Sampling: From surface to TD – Sample every 25 meters
2 sets wet, 4 sets washed and dried, 2 sets vial
samples, 2 sets file samples. Sample every 30 meters
from the intervals with 80% clay, one set wet unwashed,
one set wet washed.
Temperature: 1.25oF/100 ft average borehole gradient
86oF at surface
Maximum recorded BHT of 167.7oF

Pressure: Normal pressure regime.

2.2 Mud logging Operation Summary

Mudlogging services for West Dinder-1 were provided by Datalog. The logging
unit was equipped as follows;

 An ALS-2, Level 5 computer system allowing real-time monitoring and

recording of drilling and gas data.
 Gas detection equipment consisting of a TC Chromatograph of type 4900
utilizing a conventional de-gasser located in the shale shaker header
tank. Three H2S detection equipments were utilized on this well.
 Sample catching, examination and bagging equipment.
 Ultra violet box to examine the samples with oil potentials.
 QFT analyzer to examine the possible oil rich cuttings.

7
The Datalog crew is comprise of six persons, one Data Engineer on 24 hours
call, one Pressure Engineer on 24 hours call, two Mud loggers working 12 hours
shifts, and two Sample Catcher working on a 12 hours shift.
Two sets of un-washed air-dried samples, four sets of washed oven-dried
cuttings samples, two sets of washed oven-dried vial samples, and two sets of
washed oven-dried file samples were collected at 25 meter intervals from
surface down to 1900m MDRTE (TD). One set of geochemical samples and one
set of bio-stratigraphic samples were collected every 30 meters intervals in the
strata with 80% clay.

Interval Frequency Number of Sets

Surface-2035m Every 25 m 2x Wet Cuttings
Surface-2035m Every 25 m 4 x Washed and Dried
Surface-2035m Every 25 m 2 x Washed and Dried (in vials)
Surface-2035m Every 25 m 2 x Washed and Dried (in files)
In the clay-rich Every 30 m 1 x Wet samples (Geochemical)
zones
In the clay-rich Every 30 m 1 x Washed (Bio-stratigraphic)
zones
Distribution
Set Type Destination
A Wet WNPOC
B Wet OEPA
C Washed & dried WNPOC
D Washed & dried OEPA
E Washed & dried OVL
F Washed & dried SUDAPET
G Washed & dried WNPOC
H Washed & dried OPEA

Table 2: Geological samples sets

The Data Engineer maintained the integrity of all data, generated Mud logs and
Gas Logs. The Pressure Engineer did the necessary hydraulics calculations,
helped maintaining the data integrity. The Mudloggers duties included examining
cuttings and providing lithological and hydrocarbon show descriptions for the
Mud log. The Mudloggers also monitored mud and drilling parameters during

8
drilling and trips. The Sample Catchers recovered cuttings from the shakers and
prepared/bagged same for “wet” and “washed and dried” preservation.

3. GEOLOGICAL SUMMARY

3.1 LITHOLOGICAL DESCRIPTION

1.1 Formation Description

9
Samples description started at about 31.3m MDRTE, just below the conductor
pipe in the possible Tertiary-Quaternary sediments. A summary of the samples
description is provided in the Composite Well Log (Attachment 1) and also in the
Daily Geological Report.

The formation tops are best defined from wire line logs. Generally the samples
quality is fair.

Post-Damazin Formation (31.3m MDRTE to 220.48m MDRTE): Tertiary/

Quaternary

The Post-Damazin clastics unconformably overlay the Late Cretaceous

sediments starting from surface down to 220.48m MDRTE. The formation is
dominated by sandstone with some minor amounts of claystone beds of average
thickness of three meters. Occasionally some siltstones are also observed with
average thickness of two meters. The sandstone is generally medium to coarse
grain, generally fining downward, and some traces of siliceous cement are
observed. The claystone is generally varicolored, predominated in some depths
with grayish green colored claystone. No hydrocarbon is observed in this
formation.

The thickness of the sequence is 189 meters.

Damazin Formation (220.48m MDRTE to 460m MDRTE): PossibleTuronian-

Lower Senonian
Damazin formation is picked at 460m MDRTE, based on the change in the
lithology from sandstones at the base of Post Damazin to interbedded sandstone
and claystone; also on the relative change in the grain size of the sandstone
(coarsening upward???). The formation is generally dominated by sandstone

10
with thin claystone beds with average thickness of two meters. No siltstone is
observed in the cuttings. The grain size of the sandstone is mainly coarse at the
upper part of the formation, and become finer down towards the base. The sand
grains are generally associated with argillaceous matrix all the way from top to
bottom. Some rare pyrite pieces are recorded in the sandstone, and also some
coal fragments. The claystone is mainly light grey in color, and moderately hard.
No hydrocarbon is recorded in this formation.

The thickness of the formation is 239.5 meters.

Dinder I Formation (460m MDRTE to 1171.5m MDRTE): Albian-Cenomanian

Dinder I formation top is very hard to picked from the cuttings, but based on
some slight changes in the cuttings - the change in the grain size of the
sandstone to become relatively coarser, and also the relative increase in the
percentage of the claystones. The formation is generally sandstones interbedded
with claystones, becomes sandier towards the base, and ends with a thick bed of
claystone about 25 meters in thickness. Some thin beds of siltstone are observed
at the upper and the middle parts of the formation. The sandstone grains size is
commonly coarse to very coarse at the upper part of the formation and fines
gradually towards the base of the formation. Some iron oxides fragments have
been recorded through out the formation and vanish just at the base, also some
pyrite are observed at the lower part of the formation together with traces of
mica. The claystone is mainly grayish green and moderately hard. No
hydrocarbon is recorded in this formation.
The thickness of this sequence is 711.5 meters.

Intra Dinder I Formation (1171.5m MDRTE to 1913m MDRTE): Barremian

The top of Intra Dinder I formation is picked at 1171.5m MDRTE right beneath the
22 meters thick claystone at the base of the upper formation; at the first
sandstone interval with poor oil shows. The formation is comprised of sandstone
and claystone interbeds. The sandstone is fining downward starting with medium

11
to coarse grain at the top of the formation and goes through some sudden
variation in the grain size but ends with fine grain sandstone down to the base.
The nature of the matrix in the sandstone is generally argillaceous, however
some calcareous cement are recorded in some intervals. The claystone varies
between reddish brown and grayish green, and slightly calcareous in many
intervals. There are some intervals with oil shows, varying from traces to good
shows, which is describe in details in the oil shows table.
The formation is 741.5 meters thick.

Dinder II Formation (1913m MDRTE to 2035m MDRTE (TD)): Neocomian

(Hauterivian-Valanginian)
Dinder II formation top is picked at 1913m MDRTE based on the E-logs and the
correlation with the offset wells. The formation is basically sandstones
interbedded with claystones, and four meters of siltstones are encountered close
the total depth. The sandstone is fine to medium grain in general; the sand grains
are associated with some argillaceous matrix, and occasionally kaolinitic cement
is presence. The claystone is mainly grayish and becomes predominated with
reddish brown claystone towards the TD. Some oil shows are recorded in this
formation, for details refer to the oil shows table.

3.2 HYDROCARBON SHOWS EVALUATION

3.3 Oil Shows
The wellsite geologist described the following oil shows :

12
Table 3: Oil Shows Summary

3.4 Gas Shows

13
Gas shows were measured by the Thermal Conductivity chromatograph of type
4900 used in Datalog mudlogging unit. The Gas Chromatograph detected gas up
to nC5 and CO2. The Chromatograph worked reasonably during the operation,
sometimes affected by the necessary changes from one shaker to the other.

Intra Dinder I

Intra Dinder I formation started with a big gas peak of 700 ppm (basically C1) at
1180m MDRTE that helped identify the top of the formation, then the readings
returned to a background level of about 200ppm, with some few peaks of around
600 ppm. The low readings continued down to 1506m MDRTE where it increases
to 2000 ppm (containing all the components from C1 up to nC5) and fluctuates at
the deeper levels down to the base with a background level of about 500 ppm,
but at 1870m MDRT the gas reading peaked up again to about 5000 ppm in a
good oil show zone.
For more details, refer to the gas peaks table.

Dinder II
The gas reading jumped in Dinder II formation at 1932 m MDRTE with maximum
gas peak 5000 ppm at 1945 m MDRTE and the background gas level was about
300 ppm.

14
15
 Gas Peak Chromatograph Analysis:
Depth Total C1 C2 C3 iC4 nC4 iC5 nC5 CO2 H2S
(m MDRTE) Gas (ppm) (ppm) (ppm) (ppm) (ppm) (ppm) (ppm) (ppm) (ppm
(ppm)
1226 803 798 5 0 0 0 0 0 309 N/A
1385 1025 995 27 1 0 0 1 1 315 N/A
1509 3018 2601 177 75 52 61 27 25 296 N/A
1617 2807 2504 134 67 20 37 15 30 305 N/A
1739.5 579 555 20 4 0 0 0 0 335 N/A
1876.5 5843.0 4555.0 510.0 338.0 92.0 177.0 77.0 94.0 332 N/A
1944.5 5115 4237 435 245 42 83 25 48 335 N/A
Table 4: Maximum drill gas

4 PETROPHYSICAL EVALUATION

4.1 Wire line Logging Operations

16
The following wire line programs were carried out;

Wire line Logs: Run #1.1 - SP-GR-HALS-BHC-MCFL (12 ¼” open hole)

Run #2.1 - PEX-HALS-HNGS-DSI-SP (8 ½”open hole)
Run #2.2 - FMI-GR (8 ½” open hole)
Run #2.3 - XPT-CMR-GR (8 ½” open hole)
Run #2.4 - MDT-LFA (8 ½” open hole)
Run #2.5 - CST-GR (8 ½” open hole)
Run #2.6 – VSP (8 ½” open hole)

Schlumberger provided all wire line logging services for West Dinder-1.

17
 Table 5: Wire line Logging Program

4.2 Petrophysical Results & Well Testing

Based on petrophysical evaluation several HC intervals were identified and

recommended for testing (see table 6):

18
Table 6: Petrophysical Results

19
4.3 DST Results

Figure 2: DST 1+2 (Dinder-II)

20
Table 7: Preliminary Well Results DST#1

21
Figure 3: DST-3 (Intra Dinder-1E)

Table 8: Preliminary Well Results DST#3

22
Figure 4: DST 4+5 (Intra Intra Dinder-1C)

Table 9: Preliminary Well Results DST#4

23
Figure 5: DST-6 (Intra Dinder-1)

24
Table 9: Preliminary Well Results DST#4

25
5. Geochemical Analyses

Vitrinite reflectivity analyses have been carried out on 6 cuttings samples

from the West Dindir-1 well. The samples were submitted by Central
Petroleum Laboratories and received in the APT UK laboratories on 28th
February 2008. The samples were small amounts of apparently coarsely
crushed rock chips in small aluminum foil sachets. It was subsequently
understood that these samples were for vitrinite reflectivity analysis. The
samples were submitted for mounting in resin and measured for vitrinite
reflectivity.

The six samples provided covered the depth span 960m to 2030m. The
samples submitted for analysis from this well were all dominated by fine
grained shale although the samples all exhibited strong haematite staining.
Organic content in all the samples was low to non-existent with often only
traces of material seen. Humic organic matter was present in only trace
abundances with only the sample at 1690m having a low content of mainly
inertinite. No determinations were possible in two of the samples.

Measurements considered reliable were obtained from only one of the

samples (1690m) since good vitrinitic particles were very rare. Reflectivity
values considered indigenous were in the range 0.45% to 0.55%; a trend of
increasing reflectivity with depth can be seen in Figure 1 but given a surface
value would be expected to be around 0.2%, it is not reasonable to attempt
to draw a gradient of increasing vitrinite reflectivity with depth for this well
section. If correct these results imply the top of the oil window will be found at
around 2000m depth (0.5% Ro) although this would likely imply a degree of
uplift and erosion near surface.

Kerogen is very scarce in the samples examined and the kerogen types found
in the section are a mixture of humic oxidised (?) organic matter with
occasional non- to partly fluorescent amorphous material and occasional
traces of algae. Fluorescence colours were mostly light yellow to yellow-
orange generally in agreement with the immature to early stage of thermal
maturity determined from the vitrinite reflectivity results.

26
6.0 Biostratigraphic Analysis

Eight (8) ditch-cutting samples from West Dinder-1 well have been analyzed for
their palynofloral content. The samples covering the interval; 1150m to 1990m.
The age of the above-mentioned studied section from West Dinder-1 well, could
not be possible due to the lack of any characteristic spores or pollen grains.

7.0 Conclusion

West Dinder-1 has proven that the western flank of the Blue Nile basin has good
reservoirs even at 2000 m depth. It is unfortunate that WNPOC was unable to
deepen the well due to operational problems. Future wildcats wells (planned
2500 m) can be targeted at this western flank area, but the main geological risk is
the effectiveness of the top and fault seals. Despite the numerous good oil
shows, no oil has been recovered from the 4 DST conducted. This could be due
to residual or heavy oil.

27
LIST OF FIGURES

Figure 1: West Dinder-1Location Map

Figure 2: Figure 2: DST 1+2 (Dinder-II)
Figure 3: DST-3 (Intra Dinder-1E)
Figure 4: DST 4+5 (Intra Intra Dinder-1C)
Figure 5: DST-6 (Intra Dinder-1)

LIST OF TABLES

Table 1: Maximum horizontal uncertainty

Table 2: Geological samples sets
Table 3: Oil shows summary
Table 4: Maximum drilled gas
Table 5: Wireline logging Program
Table 6: Petrophysical Summary Results.
Table 7: Preliminary Well Results DST#1
Table 8: Preliminary Well Results DST#3
Table 9: Preliminary Well Results DST#4
Table 9: Preliminary Well Results DST#4

28