(Reuters) - Genel Energy Plc (L:GENL) said on Monday that one of its wells, drilled to appraise the northern end of its Taq Taq oilfield in Kurdistan region of Iraq, encountered oil bearing reservoirs.
The main objective of the well, which has been drilled since February, was to reduce uncertainty about the free water level in the north flank of the field.
Further development of the Cretaceous reservoir had been deferred pending results of the testing programme.
Genel said the well, which was drilled to a measured depth of 3,100 metres, encountered good quality oil bearing Cretaceous Shiranish and Kometan reservoirs.
"Combined with the testing results, management is optimistic for the potential of the northern flank of the Taq Taq field," said Genel, one of a handful of foreign oil firms in Iraqi Kurdistan.
However, the company said it was too early to estimate what impact the well result would have on reserves, long-term production rates or future investment activity in the northern flank and the field as a whole.
The Taq Taq field currently has gross production of 15,100 barrels per day of oil.