The Bahar Project

Greenfields Petroleum Corporation, through its wholly owned subsidiary Bahar Energy Limited (BEL), owns an 80% interest in the Exploration, Rehabilitation, Development and Production Sharing Agreement (the “ERDPSA”) with SOCAR and its affiliate SOCAR Oil Affiliate (“SOA”) in respect of the offshore block known as Bahar Gum Deniz (the “Bahar Project”), which consist of a Contract Rehabilitation Area (“CRA”) including the Bahar Gas Field and the Gum Deniz Oil Field and an Exploration Area (“CEA”).

The Bahar Project is located south of the Absheron Peninsula and a few kilometers to the east of Baku.  It comprises producing oil and gas fields lying offshore Azerbaijan in the shallow waters (up to 10 meters deep) of the Caspian Sea. The producing oil and gas facilities include 89 offshore platforms, multiple pipelines and approximately 16.8 kilometres of steel causeways with well pads from an offshore island into the shallow waters of the Caspian Sea.

Geologically, the fields comprising the Bahar Project are located in the north-western portion of the South Caspian Basin. The South Caspian Basin contains large proven oil and gas resources with over 100 fields discovered to date. The Energy Information Administration reported proven resources of 7 Bbbls and 35 Tcf in 2016. The South Caspian Basin covers an area of approximately 207,000 Sq. km which includes the southern extent of the Caspian Sea and extends landward into Eastern Azerbaijan, Western Turkmenistan and Northern Iran.

Currently the CRA includes 34 producing wells, 24 located in the Gum Deniz Oil Field producing crude oil with associated gas and 10 located in the Bahar Gas Field producing natural gas with condensate.  The CRA also has another 224wells currently shut in.  No wells have been yet plugged and abandoned.

Other producing assets adjacent to the Bahar Project include large oil and gas discoveries with reserves amounting to multi-billion barrels of oil and multi-trillion cubic feet (Tcf) of gas. These include BP’s prolific Shah Deniz field, located south east of the Bahar area, which is estimated to contain nearly 25 tcf of potential gas.