A group of explorers hit the Dalia-1 well on their Adam Concession for approximately 3,600 b/d of oil and 65 MMcf/d of gas. It went onstream at an average flow rate of 2,000 b/d.

That's the recent example officials of Tunisian state oil company Etap like to point to when they're illustrating the potential of the country.

Operator Eni Tunisia B.V. tested the well from 31 ft (9.5 m) of perforations in three zones through a 48⁄64-in. choke with flowing wellhead pressure of 1,150 psi after drilling to the Silurian Tannezuft formation at 12,018 ft (3,663 m).

Mike Lakin with Envoi Ltd., who helps companies find and market international deals, said Perenco took over the Takrouna block from CMS. The company has found two prospects on the 1,736-sq-mile (4,496-sq-km) tract. One is a look-alike to the prolific Sidi El Kilani field, and the other is a new thrust play. The SLK #10 well in Sidi El Kilani field was put on production in February last year after testing for 2,000 b/d of oil, and the operator is shooting 3-D seismic to locate more drilling sites.

Speaking at the North American Prospect Expo 2005 International Forum, Jalel Smaoui, senior geologist and south area manager of the exploration department in Etap, said the company offers a politically stable, growing economy with promising petroleum potential. Gross domestic product has grown at an average 5% a year between 1962 and 2001, and the inflation rate is 3%.

Overall, the country anticipates expenditures of more than US $100 million in its oil and gas industry this year, Smaoui said.

More and more, Tunisia is seeing seismic-driven exploration, and it's stockpiling more and more 3-D seismic work. During 2004, PGS shot 3-D seismic for MP Zarat on its offshore Zarat field and for BGT on its offshore Ulysse and Amilcar fields. Enageo shot 3-D over Sitep's onshore El Borma field, and Large shot shallowwater 3-D seismic of Apex properties on the Sfax Offshore concession in the Gulf of Gabes. Apex and BGT also collected 2-D seismic over their properties, and Sodeps contracted CGG to collect 2-D seismic onshore at its Laarich/Debbech concession.

In all, 33 international and Tunisian companies did some exploratory work on 25 onshore and nine offshore tracts during the first 9 months of 2004.

The country would particularly like to increase exploration in the northern part of the country, in the Gulf of Hammamet and off the northern coast in the Mediterranean Sea, but much of the activity lately has taken place in the south.

The Eni-Etap-Pioneer-Paladin consortium's Adam field is in the south, and it's adjacent to the Borj el Khadra prospect, also operated by the consortium led by Eni.

Tunisia needs explorers, Smaoui said. The country's large El Borma field in the south is mature and production is falling. Tunisia would like to open new fields to replace that declining production.

On the natural gas side, the country's leaders are pushing for more gas for domestic use.

Tunisia wants to increase its production from the current 70,000 b/d and hopefully get back to the early 1980s peak of around 120,000 b/d. Some 70% of current production comes from six major fields, El Borma, Ashtart, Qued Zar, Adam, Didon and Miskar. Miskar, about 80 miles (129 km) offshore in the Gulf of Gabes, also is the country's major gas producer, accounting for 240 MMcf/d (6.8 MMcm/d) of the country's 300 MMcf/d (8.5 MMcm/d) total.

Etap estimated total reserves for the county at 697 million boe, with about 53% of that number in oil.