The Kurdistan Regional Government of Iraq (KRG) has formally approved HKN Energy Ltd.’s Sarsang Development Plan, which projects increasing production to 50,000 barrels of oil per day (bbl/d), according to a news release.

Additionally, HKN has also declared that the East Swara Tika-1 well, drilled adjacent to the Swara Tika structure, is commercial.

As operator of the Sarsang Block, HKN conducted extensive testing on the East Swara Tika-1 well bringing oil to the surface from both Triassic and Jurassic reservoirs with aggregate rates exceeding 8,000 barrels of oil per day (bbl/d), the release said. The test of the Triassic Kurra Chine A achieved a natural flow rate of 5,675 bbl of 37-39 degree API gravity oil per day on a 72/64-in. choke with associated gas of 6.8 MMscf/day.

HKN began commercial production of the Swara Tika-1 well in June 2014 and has since produced in excess of 1.5 million barrels of oil which have been sold into the local market, the release said. Due to the commerciality of East Swara Tika-1, HKN has submitted a proposed amendment to the Sarsang Development Plan.

HKN holds a 42 percent participating interest in the Sarsang Block. The other Sarsang contractors include Marathon Oil KDV B.V. and Maersk Oil Kurdistan A/S, holding a 20 percent and 18 percent participating interest, respectively. The remaining interest in the block is held by the KRG, according to the release.