Zenith Energy Ltd Production restored at well M-66 in Azerbaijan (2256M)
27 July 2017 - 4:03PM
UK Regulatory
TIDMZEN
RNS Number : 2256M
Zenith Energy Ltd
27 July 2017
July 27, 2017
ZENITH ENERGY LTD.
("Zenith" or the "Company")
Production restored at well M-66 in Azerbaijan
Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; TSX.V:
ZEE), the dual listed international oil & gas production
company operating the largest onshore oilfield in Azerbaijan, is
pleased to announce that production has successfully been restored
at well M-66 in the Muradkhanli field.
Production History of well M-66
Well M-66 was drilled in 1978 with initial flow rates of 14
BOPD. Acid fracturing, performed shortly after completion,
increased production to 284 BOPD. In 1999 well M-66 became shut
in.
CTU Well Interventions
Well M-66 has been cleaned out to a depth of 3011 meters with a
coiled tubing unit (CTU) using nitrogen. This procedure has
restored production and achieved a flow rate of 15 BOPD. 150
barrels of oil which had accumulated in the wellbore were also
recovered during the well intervention.
This operation is part of a larger, systematic programme towards
economically maximising production at non-producing and
underperforming wells across Zenith's 642.4 km(2) contract
area.
Team A, comprised of Zenith's field personnel operating the
Company's workover rig, together with Team C, comprised of Smape
Srl contractors operating a CTU, will now move to the Zardab field
to engage in a series of high-impact workovers. A number of wells
in this field produced in excess of 500 BOPD for a short period of
time before they became plugged-up with sand.
Wells M-45 and M-195 Update
The Company is awaiting delivery of electric submersible pumps
(ESP's) for both these wells. Zenith will release an update when
the pumps have been installed and the resulting flow rates have
been determined.
Zenith Chief Executive Officer, Andrea Cattaneo, commented:
"I am pleased with this result. The recently arrived coiled
tubing unit is now being employed as much as possible in all our
well interventions. Our technical skillset has also been enhanced
by the arrival from Canada of two workover specialists, a reservoir
engineer and a drilling engineer. Our operational capabilities will
further improve when we complete the acquisition of a new Chinese
manufactured workover rig. The Company will make an announcement
when this is completed and a delivery date is defined.
M-66 was one of the many wells selected for coiled tubing
interventions. The small operational outlay relative to the
significant increase achieved in production revenue from this well
should not be overlooked.
It is clear that there is a vast amount of oil under the surface
in the Muradkhanli field. It should, however, also be underlined
that well workovers on old Soviet wells will deliver only
progressive production increases as opposed to the exceptional flow
rates made possible by successfully drilling new wells. As stated
in previous announcements, we intend to begin drilling activities
in 2018.
I look forward to our operations in the Zardab field, where some
of the Company's most promising wells are located. It is important
to note that no significant operations have been performed in this
field during the last twenty years. I am confident that the use of
a coiled tubing unit, combined with a strengthened operational
team, will deliver strong results."
For further information, please contact:
Zenith Energy Ltd.
José Ramón López-Portillo
Chairman
Andrea Cattaneo
CEO & President
Email: info@zenithenergy.ca
Telephone: +1 (587) 315 9031
Telefax: +1 (403) 775 4474
Allenby Capital Limited - (Joint Broker)
Nick Harriss
Nick Athanas
Richard Short
Telephone: + 44 (0) 203 328 5656
Optiva Securities - (Joint Broker)
Christian Dennis
Telephone: + 44 (0) 203 137 1903
Abchurch (Financial PR/IR)
Tim Thompson
Telephone: +44 (0) 200 7398 7700
This information is provided by RNS
The company news service from the London Stock Exchange
END
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