document: On 19 March 2018, Australian Independent Petsec Energy Ltd announced that it had completed its outstanding acquisition of Oil Search (Yemen) Limited (OSYL) assets and in doing so secured a 100% financial interest in the onshore 4,939 sq km Block 7 (Al Barqa) concession.  The company had formerly announced on 15 November 2016 that it had entered into an agreement with KUFPEC to acquire its 25% working interest in block, but that the agreement with KUFPEC, as well as its 2015 agreement to acquire block interests and operatorship from OSYL, remained subject to approval from Government of Yemen and the Ministry of Oil and Minerals. During September 2015 it had completed the acquisition of a 29.75% participating interest in the block following the acquisition of both a 8.5% interest from Mitsui E&P Middle East B.V. and 21.25% from AWE Limited (as previously recorded in 1H 2014).     Petsec Energy had announced in April 2015 that it had concluded an agreement to acquire an additional 34% working interest (40% financial) in the Block 7 concession from OSYL. The acquisition was to take its total participating involvement up to 63.75% at which point it intended to assume full operatorship of the concession once the deal was ratified by the oil ministry and parliament. Petsec has been steadily expanding its position in the block despite worsening security and logistical challenges. It remained in a state of Force Majeure throughout 2014, nevertheless the government granted OSYL another 12 month licence extension to June 2015, and a 5,000 sq km of airborne magnetic/gravity survey is to be complimented by 250 km of 2D as soon as the operational environment improves.   Petsec announced on 30 May 2014 that it had concluded an agreement to acquire an additional 8.5% working interest (10% financial) from Mitsui E&P Middle East BV, thereby taking its total participating involvement up to 29.75%. Otis Energy Ltd had sought to acquire the stake from Mitsui, but been unable to conclude a deal within the time frame allocated. Otis had announced in late December 2013 that all non-governmental partners had approved a preliminary agreement signed during 2Q 2013, but the longstop date for this expired on 24 April 2014, and so the parties had 20 working days until 22 May 2014 within which to complete the transaction. Petsec had previously stated on 28 March 2014 that it was in the process of acquiring a 21.25% working interest in the concession from AWE Limited as part of an agreement requiring full government and partner approval.   Block 7 has been held under Force Majeure since the onset of civil unrest in the country in 2011, however a contract extension had been granted to operator OSYL by the government to June 2013, and this was subsequently extended for an additional 12 months to early June 2014.   In a company annual report released on 17 October 2012, AWE confirmed that its Yemen concessions had remained under Force Majeure since May 2011 following the onset of civil unrest in the country during February 2011. It had a 19.25% working interest in onshore Block 7 (held by its subsidiary company ARC Energy), and prior to relinquishment it held a 29.75% working interest in the onshore 1,203 sq km Block 74 (Qusa), held by subsidiaries ARC Energy and Adelphi Energy. AWE acquired the acreage positions through corporate acquisition and it intends to refocus its exploration portfolio, with Yemen is no longer regarded as a core area. Significantly, Block 7 includes the 2010 Al Meashar oil discovery and a number of sizeable follow-up prospects.   OSYL suspended as a future oil producer Al Meashar 2, pending evaluation of well results on 20 January 2011. It had tested the fractured Basement reservoir section of the appraisal at rates of up to 140 bo/d using a Jet Pump. The well, is located to the south of Block 7 and wireline logging had been completed over the Basement section to a depth of 3,750m TD, which contained oil shows over the interval 3,200m to 3,750m. Prior to this, oil shows had been encountered between 3,200m to 3,460m. Al Meashar 2 had been spudded using UBD or âManaged Pressure Drillingâ techniques with a PTD of 3,740m, using the L/R Joeco "50106" on 9 October 2010 to appraise the Al Meashar 1 fractured Basement discovery, which flowed oil but proved inconclusive in terms of productive potential due to formation damage. OSYL had suspended the Al Meashar 1 new-field wildcat on 30 April 2010 as a potential future producer after having to undertake a fishing operation to recover a stuck bottom hole assembly following the completion of the second drill-stem test (DST) over the interval 3,180m-3,660m in the basement section.   Flow rates averaged approximately 600 bbl of oil and mud per day and periodically tested higher whilst the well was cleaning up. An open hole DST had previously been undertaken over the interval 3,125m to 3,660m during March 2010 and a production logging tool (PLT) was run following the end of the test, oil flow was obtained from both above and within the basement section. Flow rates from the first test averaged approximately 400 bbls of oil and mud per day and periodically tested higher. Previous testing had resulted in the well flowing oil and drilling fluids to the surface at unstabilised rates. A large amount of unrecovered drilling fluid was lost to the formation. The well reached TD of 3,660m in basement and high levels of gas were observed in the section, following which logging operations were conducted over the open hole section.   Al Meashar 1 was spudded using the land rig âJoeco 50106" on 29 November 2009, to the south of the Block 7 concession with a PTD of approximately 3,650m and a fractured basement play objective. The pre-drill estimate was that the prospect may hold up to 25 MMbo recoverable. OSYL completed a 272 sq km 3D seismic survey in the south-western portion of the block in late July 2008. The initial work commitment for both blocks 7 and 74 included the reprocessing and acquisition of 2D seismic and the drilling of at least seven exploration wells over a 36 month first exploratory period (FEP). Reprocessing of approximately 1,200 km of existing 2D data was also undertaken.   Block 7 is located in the Shabwa Sub-basin of the Marib-Al Jawf-Hajar Basin. Soviet company Technoexport drilled five exploration wells in the area between 1983 and 1987. Shabwa 1 was spudded in December 1983 and was plugged and abandoned with oil & gas shows in Tithonian Lam sandstones. The Shabwa 2 to 5 exploration wells were also unsuccessful. Following the merger of North Yemen and the People's Democratic Republic of Yemen (PDRY), Technoexport left the region and the West Shabwa area was divided into 12 blocks. BP became operator of the block in 1991 and during the period 1992 to 1994 drilled five wells, all of which were reportedly dry.   Hunt is believed to have submitted an unsuccessful application for the block in 2004.   Oil Search was provisionally awarded the Block 7 on 23 July 2005 as part of the Second Yemen Bid Round (Bid Round II). A Production Sharing Agreement (PSA) for the block was signed on 15 April 2007 and the block was ratified by the Yemeni Parliament in March 2008.   Equity interests in the block had been Oil Search (Yemen) Limited (32%), ARC Energy Ltd (19.25%), Kufpec (Aden) Ltd (20.25%), Mitsui (E&P) Middle East (8.5%), Dhakwan Petroleum & Mineral Company Limited (5%) and The Yemen Company (15%), however once all pending deals have been fully approved by the government, the participants will be: Petsec Energy (Operator 85% - once finalised) and The Yemen Company (15% carried).  Â 
summary: Petsec Energy has taken over operatorship of Block 7 (Al Barqa) after gaining a 100% interest from Oil Search.