Zenith Energy Ltd Workover rig operated by Team B moves to well M-45 (4831H)
June 08 2017 - 1:00AM
UK Regulatory
TIDMZEN
RNS Number : 4831H
Zenith Energy Ltd
08 June 2017
ZENITH ENERGY LTD.
("Zenith" or the "Company")
Workover rig operated by Team B moves to well M-45
Calgary, Alberta, June 8, 2017, Zenith Energy Ltd. ("Zenith" or
the "Company") (LSE: ZEN; TSX.V: ZEE), the dual listed
international oil & gas production company, is pleased to
announce that, after completing successful sidetrack operations at
well M-195, the local drilling contractor operating as 'Team B' has
been assigned the task of completing the workover of well M-45.
'Team A', comprised of the Company's field personnel and
operating Zenith's workover rig, will leave the well M-45 location
and engage in a series of systematic pump replacement and repair
operations at a number of wells. These pump replacement activities
have already generated increased production, as announced by Zenith
on April 10, 2017, and are expected to yield further incremental
production increases as and when they are completed.
It has been determined that a more powerful workover rig, such
as that operated by Team B, will more effectively complete the
workover of M-45. Team A has successfully cleaned this well to 3568
meters. Team B will remove the remaining 162 meters of tubing,
subsequently re-perforate the casing at the producing level and
possibly perform an acid stimulation and/or hydraulic fracturing of
the Cretaceous reservoir to improve the well's productivity.
In addition, the Company has decided to install an Electric
Submersible Pump ("ESP") at well M-45 in order to further stimulate
production which had been flowing due to the natural pressure of
the reservoir.
As stated in the Company's announcement of April 18, 2017, well
M-45 was drilled in 1980 and placed on production in July 1981 at
rates varying between 74 and 86 barrels of oil per day. Production
had decreased to approximately 1.5 barrels per day in early 2017
due to tubing problems.
The Company will make an announcement when workover operations
at well M-45 have been completed.
Zenith CEO, Andrea Cattaneo, commented:
"Zenith's focus now turns to maximise the potential success of
operations at well M-45 following the recent success of the
sidetrack at well M-195. It is clear that the Zenith engine has had
a slow start but is now gradually firing up cylinder by cylinder.
The reasons for the Company's measured approach have been our
low-cost model and the Company's aversion towards high operational
expenditure. It is, however, also clear that as the positive
results of our operations grow more apparent, the Company shall
gradually increase its CAPEX in order to achieve its oil production
objectives more quickly.
Now that Zenith has enhanced its technical and management
skillset with the appointment of a highly experienced Chief
Operating Officer ("COO") in Azerbaijan, the Company intends to
make similar efforts towards upgrading its equipment. I am pleased
to report that Zenith is in advanced negotiations for the renting
of a second workover rig with similar specifications to that
employed by Team B at M-195.
I am confident that the arrival of Team B's more powerful rig at
M-45 will significantly accelerate the pace of operations at this
well."
For further information, please contact:
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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