Acquisition Parameters

•         Survey size:                            5,000 km

•         Sub-contractor:                      GGS / GeoBird

•         Vessel:                                    M/V Geo Mariner

•         Streamer type:                       Sercel Seal

•         Type (Digital):                                    24 bit

•         Number of streamers:                       1

•         Streamer length:                    7,000 m

•         Streamer depth:                     8 m +/- 1m

•         Airgun source type:               Bolt

•         Air pressure:                          2,000 psi

•         Volume:                                  1,995 cu. inch

•         Source depth:                         6 m

•         Shot interval:                          25 m

•         Recording system:                 Sercel Seal 24 bit

•         Recording length:                              9 sec

•         Sample rate:                           2 ms

Processing parameters

•         Processing sequence

•         Processing contractor: Geotrace Technologies

•         Main processing sequence applied

•         • SEG-D Reformat/ LC Filter

•         • Temporal anti-alias filter and resample to 4ms

•         • Automatic de-spike

•         • Swell noise attenuation ‘TFD – Noise’

•         • De-signature; Output to zero-phase

•         • Spatial anti-alias filter and alternate trace drop

•         – Output 282 fold shots, 25m groups

•         • SRME

•         • Preliminary NMO (4km analysis)

•         • F-x deconvolution within off set planes

•         • Radon Demultiple

•         • FDNA

•         • Migration Velocity analysis (1km)

•         • Spherical divergence correction.

•         • 2D Kirchhoff Pre-stack time migration (6km aperture)

•         • Final velocity analysis (2km)

•         • Inside & Outside trace mutes

•         • 2D Stack 14100%

•         • F-k dip filter (2000m/s)

•         • Time variant filter

•         • +8ms Gun and cable static

•         • 1000ms stable AGC

•         • Scaling to approximately 2000 RMS

Hydrocarbon indicators

 There are many areas and countries around the offshore Syria where oil and gas shows and discoveries have been encountered in the offshore area we have made several observations indicating the presence of an active petroleum system.

BRIGHT SPOTS

Within the Plio-Pleistone units there are several indications of bright spots and other indications of presence of hydrocarbons .is present at the top of a rotated fault block. Many of these bright spots are located above topographic highs or along faults. For this reason we assume that there is an active petroleum system.

Prospectivity

In the onshore wells close to the Syrian coast (Latakia wells) there are intervals both in the Cretaceous and Tertiary with gas shows and traces of oil or bitumen. The explanation for the lack of major hydrocarbon occurrences has been that the wells have not been placed in an optimal position on the structure. However, the most likely explanation for lack of discoveries near the coast is due to the Tertiary uplift that has flushed out the hydrocarbons. In the offshore areas, where thicker accumulations are present and the area is sinking, the probability for retaining hydrocarbon should behigher.

There are several structural and stratigraphic trends identified offshore, there are several indirect and direct indications of an active petroleum system offshore.

In the section below various aspects of petroleum system has been evaluated, including source rocks and maturity at different stratigraphic intervals, cap rock and integrity, play models and hydrocarbon indicators.

Source rocks

There is little information about the existence of source rock from the offshore areas. From onshore there is some information from the wells and some from the coastal rock sections. Few of the onshore wells have drilled deep enough to encounter the good source rock intervals, but source rocks are known from adjacent areas both in Syria (Ghab) and from Lebanon. Source rocks are known from the Tertiary, but they are too shallow to have any potential as source rocks. Source rocks have beenencountered in several stratigraphic levels onshore.

Triassic: Source rocks are known from SYRIA & Lebanon in non-marine sequences in the lower part of the sequence. Also there is source rocks from Early Triassic in the Palmyrides and Aleppo sequence.

Jurassic: In the central part of the Levantine Basin facies changes can be seen. These may represent more distal deposits and contain shales with source rock potential. Similarly in the Iskenderun Basin, facies changes from the more shallow to deeper parts of the basin may be indicative of shale with source rock potential.

Cretaceous: So far, no source rocks are known, but shales in the Aptian in the onshore well Latakia-2 may be in a more distal position in the Levantine Basin and contain source rocks.

Tertiary: Source rocks are known from the Pliocene on the Eratosthenes seamount in the south western part of the Levantine Basin (Kroon, et. Al.1998). Sapropelic sediments within the Pliocene iscommon within the Mediterranean and its appearance around 3.2 Ma seems to be linked with the build up of the northern hemisphere ice sheets (Kroon et. al. 1998, p.187). However, these source rocks are unlikely to be mature in the area studied offshore Syria.

Cap rocks

Salt is extensive and is considered to be a good seal in all the basins. In areas where the salt is missing, either as a primary depositional limitation or caused by salt withdrawal during the deformation phases the overlying sequence of Plio-Pleistocene may form a seal. Seismic anomalies seem to indicate the entrapment of gas at least within the Plio-Pleistocene sequence.

In some of the basins inversion structures may be sealed with deeper water marls and shales that could act as good seals. There are indications in the Levantine Basin, Cyprean Basin and Latakia Basin that the overlying shales may have acted locally as seal.

Some of the faults seem to be open and leaking gas. This is particularly obvious with some of the major faults, where seismic anomalies can be found adjacent to these faults, and continuing into more porous sediments (i.e. channels) within the Plio-Pleistocene units.

The Triassic may contain evaporites in the offshore areas, in which case it may be a good seal.

Reservoir

There are several potential reservoir intervals present within the offshore sections .The presence of the reservoir intervals is based on a combination of onshore knowledge and seismic facies which can be inferred from the seismic grid (generally 4 x 4 km). There is a good potential for different reservoir lithologies in the various basins.

Triassic. Thickness of the Triassic in the southern part of Syria. Vary between 1500 and 2000 m in the Levantine Basin and thin into the Nahr-el Kabir basin to less than 1000m. . Within this interval there are mostly carbonates including

Dolomites as seen in the Late Triassic intervals in the onshore wells Fidio-1.

One may assume that if there is reservoirs in the Triassic offshore it may be fractured carbonates similar to the Kurrachine Dolomite onshore which is a good reservoir.

 Jurassic. Thickness of the Jurassic sequence and the Lower Cretaceous around 1100 m for this interval in the southern part , . Whereas in the onshore wells around Latakia carbonate facies prevail, we see several phases of onlap and lateral facies changes both in the Levantine Basin and in the Latakia and Inskenderun basins  Some of these facies seem to represent channelled sequences which may contain sand, and thus have reservoir quality.

 Cretaceous. From the onshore areas, including the Latakia wells the Lower Cretaceous contains silty and sandy intervals. Similar settings appear to be present also in the Levantine Basin, and in the Late Jurassic in the Latakia and Iskenderun Basins where lateral facies with erosional products from the Lanarka and Latakia Ridges may be present. On the north eastern side of the Latakia Ridge, a thick accumulation of sediments resulting in movement along fault may in part be of Late Cretaceous age. This package may contain sandy units in the lower part of that sequence.

 Paleogene. Both in the Levantine Basin, on the Latakia Ridge and within the Latakia and Iskenderun Basins there appear to be potential reservoir rocks in the Palaeocene . Along the Latakia Ridge this development may have been in the form of erosional products throughout the entire Paleogene. The Late Paleogene sequence however, suffered regional erosion, the detail of which resulted in rapid facies changes within the different basins. The extent of erosion can be observed on

land, but offshore the pattern may be more complex.

During this phase several reefs developed locally along the basinal edges, and erosional channels can be observed many places, probably indicating exposed and eroded portions of the basins. Channel sand deposits, both onshore (fluvial) and offshore (submarine deposits) can be expected.

 Neogene. During the Miocene several reefs occur in most of the basins. These reefs frequently occur below the Messinian (Late Miocene) salt, and thus have a good seal. Within the Levantine Basin.

Some of the more extensive reef complexes are found on top of fault blocks, and later encroached by the salt. At the edge of the salt basins there appear to be small deltas built out into the marine basins, and these deltas may be sandy. During the Plio-Pleistocene there are frequent channels both in shallow and deeper water. These channels may be sandy and have potential as reservoirs. The later deposits of the Neogene were distal marine mudstone and calcareous shale forming a potential seal.

PLAY MODELS

There is considerable structuring within the study area, and this has been going on since the Triassic atdifferent rates. The Late Cretaceous to Recent plate movements have created a very dynamic tectonicenvironment which is reflected in the many and varied structural and stratigraphic traps at differenthorizons. Lateral facies changes also reflect the different stratigraphic traps at older levels.

Structural plays.

The most common traps are structural highs of different kinds. Frequently these highs may be stacked large anticlines reflected at many different stratigraphic levels as isoclinal fold. Many of these may involve the entire stratigraphic column from the Triassic to Recent. Others may be short lived domes later eroded and trangsgressed, thus containing onlap features of different kinds. Inverted local basins are found in many of the larger basins and may be related to the compressive flower structures, often also related to transpressional folding and faulting.