LOCATION -  The Sarsang license is in the Kurdistan region of Iraq, within the Zagros Fold belt, as the northern extension of structural and stratigraphic trends containing prolific oil fields in Southern Iraq. The Hillwood operated Sarsang License is 340,000 acres (1200 km sq.), just north of the city of Dohuk and adjacent to the license with the Tawlke field discovery.

RESERVES - The Sarsang license will be drilled in the 2009-2010 timeframe and with success could contain several hundreds of millions of barrels of oil.

Hillwood executed a PSC in November of 2007 under the name of HKN Energy Ltd. The PSC has an initial work program over the first three years requiring seismic and drilling. An initial 2-D seismic program of approximately 250 kilometers was started in mid 2008 and is expected to be completed in early fourth quarter of 2008.

This license contains several structures which have been identified from surface geology and are being refined with the acquisition of 2-D seismic data. The initial results of the 2-D seismic program look very encouraging.  The seismic is confirming the structures mapped at the surface and providing a much more accurate representation of the structural and stratigraphic framework within the license area.  Hillwood is also using state of the art satellite imagery and processing to supplement other data sources and to refine the interpretation and identify the structures with the most prospectivity. 

The geologic structures were formed as compressional thrust fault bounded features as the Arabian Plate moved northwards and collided wit the Asian Plate.  Most of the structures in the Kurdistan Region have never been drilled and those that have are large oil and gas discoveries including the Tawlke and TaqTaq Fields.

The Zagros Foldbelt has multiple reservoirs and source rock intervals identified from field studies and sparse drilling which, when combined with the large anticlines, makes this area one of the most exciting/high potential exploration plays in the world.

Resources
www.krg.org
www.iraqoilreport.com