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Mazrur-1STConstruction of the Mazrur-1 ST exploration well wascompleted by the end of September 2007. During drilling,significant hydrocarbon shows were detected in D2_2Kurrachine Dolomite formation. DST operations confirmedflow of 470 m 3 /d of oil and 116,000 m 3 /d of gas. Drillingstopped at 3938m depth at the Amanus Sand formation.Production testing commenced on 26 October and identifiedcommercial discovery of oil and gas in the D2_2 reservoirKurrachine Dolomite formation. Maximum wellheadflow through 56/64” choke was Qoil =377.7 m 3 /day; Qgas= 190,510 m 3 /day. Upon completion of testing a Notice ofCommercial Discovery (NOCD) for the Mazrur field will besubmitted to the Syrian Ministry.Block Aphamia Operator: INA 100%According to the licence agreement for the Aphamia block,the exploration phase ends in June 2008. After identificationof significant shows of hydrocarbons during testing of theexisting well Mudawara-1, in 2007 INA planned to drillanother exploration well, Mudawara-2, in order to furtherexplore this prospect, however due to limited budget thedrilling of the Mudawara-2 well was postponed for 2008.EgyptExploration activities in Egypt were carried out on the threeexploration blocks: East Yidma, East Kalabsha and Ras El Ush.East Yidma Block - Western DesertOperator: INA 50% share, Partner: RWE-Dea 50% shareThe works on this block are in the second explorationphase, with a duration of 2 years and expiring inSeptember 2008. During the first exploration phasetwo exploration wells were drilled: Drazia-1 (temporarilysuspended) and Sidi Rahman (oil production). The Noticeof Commercial Discovery for the Sidi Rahman well andthe Development Plan were approved by the Egyptian OilMinistry in January 2007. In September the well was putinto production. During 2007 exploration activities on thisblock were focused on appraisal of the oil discovery andevaluation of potentials of the entire East Yidma prospect,as well as selection of locations for new exploration anddevelopment wells. For this purpose acquisition of 3Dseismic data on 1566 sq km commenced in August 2007,however it also involved demining of the area (mines leftbehind from World War II). The seismic survey is to becompleted at the beginning of 2008.Annual report 200731