Zenith Energy Ltd Production increased at well M-66 in Azerbaijan (7235N)
11 August 2017 - 4:00PM
UK Regulatory
TIDMZEN
RNS Number : 7235N
Zenith Energy Ltd
11 August 2017
August 11, 2017
ZENITH ENERGY LTD.
("Zenith" or the "Company")
Production increased 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 at well M-66 in the Muradkhanli
field has been increased to 50 BOPD.
The Company announced on July 27, 2017 that Well M-66 had been
returned to production after being cleaned out to a depth of 3011
metres with a coiled tubing unit (CTU) using nitrogen. A production
of 15 BOPD was achieved and 150 barrels of oil, which had
accumulated in the wellbore, were also recovered during the well
intervention. Well M-66 had been shut-in since 1999.
After conducting post-workover analysis, it was noticed that the
clean out exposed a pay zone that had not been perforated. As a
result, an additional 6 metres of pay were perforated between the
depth of 2970 and 2986 metres, specifically between 2970-2972,
2977.5-2979.5 and, finally, 2984-2986 metres. After these
perforations were completed, a coiled tubing unit (CTU) using
nitrogen was again employed to stimulate the well. Following this
secondary well intervention, M-66 is now flowing at a rate of 50
BOPD.
Zenith is systematically reviewing each well across its 642.4
km(2) contract area to achieve an increase in production. The use
of a CTU has enabled the Company to expose productive zones that
have not produced for many years. Zenith's operational team is
reviewing many Soviet era logs, which form the majority of the
Company's well data, and is comparatively analysing this material
with cased hole logging data collected in new well interventions.
This is the most economical and effective way of identifying new,
untouched areas of the wellbore reservoir.
The Company has identified an additional 5 wells that hold high
potential for production maximisation.
Well M-45 Update
Zenith is also pleased to confirm that the new Schlumberger
electrical submersible pump (ESP) has cleared customs and is
currently being transported to well M-45. The Company will release
an announcement when the installation is completed and flow rates
have been determined following installation.
Well M-195 Update
The Company is awaiting delivery of the ESP from Schlumberger,
which is custom-built according to the specifications of well
M-195. Delivery is expected in September.
Zenith Chief Executive Officer, Andrea Cattaneo, commented:
"I am pleased with this result. It is clear that Zenith is
gradually reaping the rewards of its increased investment in
equipment and the strengthening of its operational team. Our
targeted and carefully considered investments in machinery and
personnel will ensure a progressive increase in our field
production without the dangers presented by imprudent
expenditure.
There are many wells across our field that hold potential for
similar success as that achieved at M-66. I look forward to
reporting on the stabilised flow rates following the completion of
the Schlumberger ESP installation at well M-45. It should also be
underlined that the ESP installed at M-45 will be significantly
more advanced than any other ESP we have in the field. Indeed, if
we are satisfied with the benefits of this new pump, we shall look
to install similar Schlumberger pumps at a number of other wells.
The Company's operational team is confident that the new ESP,
custom-built to the specifications of well M-45, will increase
Zenith's production."
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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