TIDMZEN
RNS Number : 3068N
Zenith Energy Ltd
08 May 2018
May 8, 2018
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 ("MAR"). Upon
publication of this announcement via a regulatory information
service ("RIS"), the inside information contained in this document
is now considered to be in the public domain.
ZENITH ENERGY LTD.
("Zenith" or the "Company")
Zardab Operational Update
Zenith Energy Ltd., ("Zenith" or the "Company"), (LSE: ZEN;
TSX.V: ZEE), the international oil & gas production company
operating the largest onshore oilfield in Azerbaijan, is pleased to
provide an update on its operations in the Zardab oilfield.
Geological Study
As announced on April 10, 2018, the Company has commissioned an
extensive geological and technical study to optimise the selection
of potential drilling locations in preparation for its development
drilling programme in Azerbaijan. The study initially focused on
the Muradkhanli and Jafarli oilfields where the Company's
production wells are located. The structural re-interpretation of
seismic acquisitions and well data from a number of wells drilled
in these two fields has already enabled the identification of a
new, previously unexplored, Mesozoic carbonate prospect running
across the two fields.
In order to maximise the potential success of the Company's
ongoing workover efforts, Zenith has further expanded its
geological study to concentrate on wells Z-21, Z-28, Z-3, Z-14 and
Z-4. The primary objectives of the study are the identification of
high-value drilling locations and possible workovers in Zardab, as
well as the verification of previously announced discrepancies
between historical well data and the actual characteristics and
condition of each well today.
The preliminary findings of the ongoing geological study have
encouraged the Company to increase the scale of its operations in
Zardab.
Update
The Company can today confirm that it has now successfully
pulled out a mixed string, comprised of 2 3/8" and 2 7/8" tubing,
totalling 3,504 metres and that it has successfully pulled all of
the 4 5" tubing, totalling 1,500 metres. Zenith is currently
running wash pipe with a notched collar to fish the remaining 166
metres of 2 3/8" remaining in the wellbore.
Once this is completed, Zenith's field personnel will run in
hole with a drill bit and clean out the casing to the well's total
depth, 3,982 metres, and perform a production test.
In addition, the aforementioned geological investigation and
extended technical analysis, has led the Company to consider the
possibility of deepening Z-21 beyond the Maykop formation into the
Eocene fromation by drilling an additional 300 metres. This would
extend the total depth of the well to approximately 4270-4300
metres. The final decision on the deepening of Z-21 is predicated
on the outcome of the initial production test to be performed once
the casing of the well has been cleaned out to the current total
depth.
The primary reason for the evaluation of this possibility is the
proximity of well Z-21 to well Z-3, which was spud in 1979 and
drilled to a total depth of 4,300 metres into the Eocene and Upper
Cretaceous formations. Z-3 tested approximately 2,900 barrels of
mixed hydrocarbons per day before the wellbore collapsed.
Historical records indicate 775 metres of 2 7/8" tubing has been
left in the well. In the event that a satisfactory rate of
production was achieved from the Maykop formation in well Z-21
during the initial production test, the Company may choose not to
perform any drilling operations in Z-21 and instead begin the
workover of Z-3.
Well Z-28
As announced on February 19, 2018, a coiled tubing intervention
successfully cleaned out the well to a depth of 3,583 metres but
was unable to clean out the tubing to total depth due to
obstructions. As a result, the Company will mill out 69 metres of
tubing from 3,577 to 3,646 metres and then clean out the well to
total depth, 3,944 metres.
The Company will provide an update regarding the commencement of
Z-28 milling activities once the Z-21 workover has been
completed.
Wells Z-4 and Z-14
The Company's geological study has also examined wells Z-4 and
Z-14.
There is no confirmed date regarding when Z-4 was spud. Records
indicate that it was drilled to a total depth of 4,715 metres and
tested at a rate of 250 barrels of fluid per day in 1981, 70 per
cent of which was assessed to be oil.
Z-14 was spud in November 1988 and drilled to a total depth of
4,610 metres. There is no record that the well was ever tested. The
Company's field personnel have recently located and dugout the Z-14
wellhead- which was previously buried- with the objective of
creating an entry point into the well.
The study of Z-4 and Z-14 well data has led to the
identification of numerous oil and gas shows which are currently
being further investigated.
Mike Palmer, Chief Operating Officer, Zenith Aran, the Company's
Azerbaijan-based fully owned subsidiary, commented:
"It has been a long journey to arrive at where we are at now.
Our understanding of the field and its vast potential is increasing
day by day. Z-21 has the potential to be the most significant
operation for the Company since it began operations in Azerbaijan.
We are working day and night to achieve the resounding success we
all deserve. I look forward to reporting on our progress in due
course."
For further information please contact:
Zenith Energy Ltd.
Andrea Cattaneo
Chief Executive Officer
E-mail: info@zenithenergy.ca
Tel: +1 (587) 315 9031
Vigo Communications - PR Adviser
Patrick d'Ancona
Chris McMahon
Kate Rogucheva
Tel: +44 (0) 20 7830 9700
Daniel Stewart & Company Plc - (Joint Broker)
Robert Emmet- Corporate Broking
Nikhil Varghese- Corporate Finance
Tel: + 44 (0) 207 776 6550
Optiva Securities - (Joint Broker)
Christian Dennis
Tel: + 44 (0) 203 137 1903
Allenby Capital Limited - (Financial Adviser)
Nick Harriss
Nick Athanas
Tel: + 44 (0) 203 328 5656
Notes to Editors:
Zenith Energy Ltd. is an international oil and gas production
company, dual listed on the TSX Venture Exchange and London Stock
Exchange.
The Company operates the largest onshore oilfield in Azerbaijan
following the signing of a 25-year REDPSA, (Rehabilitation,
Exploration, Development and Production Sharing Agreement), with
SOCAR, State Oil Company of the Azerbaijan Republic, in 2016.
The Company's primary focus is the development of its Azerbaijan
operations by leveraging its technical expertise and financial
resources to maximise low-cost oil production via a systematic
field rehabilitation programme intended to achieve significantly
increased revenue. Zenith also operates, or has working interests
in, a number of natural gas production concessions in Italy. The
Company's Italian operations produce natural gas, natural gas
condensate and electricity.
Zenith's development strategy is to identify and rapidly seize
value-accretive hydrocarbon production opportunities in the onshore
oil & gas sector. The Company's Board of Directors and senior
management team have the experience and technical expertise to
develop the Company successfully.
To find out more, visit www.zenithenergy.ca or follow Zenith on
Twitter @zenithenergyltd
This information is provided by RNS
The company news service from the London Stock Exchange
END
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