TIDMZEN
RNS Number : 9576I
Zenith Energy Ltd
23 June 2017
ZENITH ENERGY LTD.
("Zenith" or the "Company")
Operational update on wells M-195 and M-45
Calgary, Alberta, June 23, 2017, Zenith Energy Ltd. ("Zenith" or
the "Company") (LSE: ZEN; TSX.V: ZEE), the dual listed
international oil & gas production company, is pleased to
provide an update on operations at wells M-195 and M-45 in the
Muradkhanli field.
Well M-195
Well M-195 has 8m of permeable hydrocarbon pay which has now
been confirmed by a recently completed Pulsed Neutron Log and
subsequent quantitative interpretation of this data by a third
party log analysis company. This has further been supported by the
historical pre-sidetrack production rates.
On June 5, 2017, the Company announced that initial flow rates
of 149 barrels of fluid per day had been recorded at this well
after the success of sidetrack operations. Following this
announcement well flow had to be cut off in order to pull out the
drill string. After this interruption the well did not resume flow
because the wellbore could only be cleaned out to the top of the
liner with the pulling unit due to liner internal diameter
restrictions. It has become apparent that a coiled tubing unit is
required to circulate the mud out of the open hole and remove the
mud cake from the borehole walls.
It is worth noting that the mud weight used to drill the
sidetrack had a specific gravity of 1.2 (10.0 ppg) and no losses
were observed during the drilling. This would confirm that the
reservoir pressure is at or near virgin reservoir pressure due to
an active underlying aquifer.
The Company is pleased to announce that an internationally
recognised Italian coiled tubing company, Smape Srl, has now been
contracted to perform several well interventions in the
Muradkhanli, Jafarli and Zardab fields, the first of which will be
well M-195. A coiled tubing unit (CTU) operated by Smape is
scheduled to arrive on June 24, 2017, to begin work and restore
production at this well.
The arrival of the CTU will result in the creation of a third
team, named 'Team C', which will operate this unit and complement
the field rehabilitation activities of Teams A and B.
Team C is expected to play a particularly important role in the
rehabilitation of wells in the Zardab field, many of which are
plugged with sand from the reservoir. Three wells in particular,
one of which will initially be chosen for a workover in 2017,
produced in excess of 500 BOPD for a short time before they became
plugged-up with sand.
The use of a CTU offers a number of advantages over a
conventional workover rig. These include:
- Ability to use continuous tubing instead of jointed
tubing.
- Capacity to circulate fluid and gas in the well whilst moving
the tubing string up and down the well for cleaning, drilling, and
stimulating wells.
- Removes the need to stop in order to make and break tubing
connections, thereby significantly increasing the speed of
operations; this is a particularly important advantage with wells
in the Muradkhanli field which have a depth of over 3000m.
- Ability to workover wells that have high pressure and flow
without killing the well. A workover rig would require the
interruption of well flow prior to performing any well intervention
work by introducing high-density fluid in the wellbore and risk
damaging the well.
It should also be underlined that whilst a CTU is valued for the
speed and operational flexibility it can offer; there are certain
interventions which only a workover rig can perform such as running
and pulling artificial lift equipment in a well.
Zenith's field management will therefore determine where best to
use Team C's CTU and where to employ the workover rigs of Teams A
and B.
The Company is also pleased to report that the design of the
Schlumberger Electric Submersible Pump (ESP) scheduled for
installation at well M-195 has now been completed. This is expected
to optimise production and reserves recovery. A service contract
between Zenith's subsidiary in Azerbaijan and Schlumberger is being
finalised and delivery of the ESP is expected by mid-July 2017.
Well M-45
Zenith is pleased to announce that it has signed a framework
contract with Baker Hughes Services International LLC, one of the
world's largest oil & gas service companies, for the provision
of fishing equipment. This equipment is significantly more modern
and advanced than the fishing tools previously used onsite. This
technology is expected to substantially increase the speed of
operations at well M-45. Delivery of this equipment has taken place
and the Company can confirm that fishing operations utilising these
tools have already commenced.
The Company can also confirm that the more powerful workover rig
operated by the external drilling company, given the name of 'Team
B' and employed for the sidetrack of well M-195, is now fully
operational at the well M-45 location.
Mike Palmer, Chief Operating Officer, Zenith Aran,
commented:
"I am very excited about the progress we have made in the past
month. Compared to the other rehabilitation projects I have worked
on, we are ahead in almost every area and are certainly going in
the right direction. We are bringing in specialists with whom I
have worked before and who have a proven track record of
operational success. Our plans for the remainder of 2017 are very
exciting and I very much look forward to delivering some big
results to showcase what Zenith is doing in Azerbaijan."
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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