Zenith Energy Ltd Workover Rig Begins Operations At Well M-195 (3989W)
February 09 2017 - 2:00AM
UK Regulatory
TIDMZEN
RNS Number : 3989W
Zenith Energy Ltd
09 February 2017
ZENITH ENERGY LTD.
("Zenith" or the "Company")
WORKOVER RIG BEGINS OPERATIONS AT WELL M-195
Calgary, Alberta, February 9, 2017, Zenith Energy Ltd. ("Zenith"
or the "Company"), (LSE: ZEN; TSX.V: ZEE) the international oil and
gas development and production company is pleased to announce that
the workover of well M-195 at the Company's Muradkhanli field in
Azerbaijan has begun.
As announced by the Company on January 24, 2017, wells M-195 and
M-45 are the first two wells scheduled for workovers in the
Company's Field Rehabilitation ('Workover') Programme.
The Muradkhanli field is the largest of three contiguous fields
(Muradkhanli, Jafarli and Zardab) controlled and operated by Zenith
Aran, Zenith's wholly owned subsidiary in Azerbaijan. Collectively
the Muradkhnali, Jafarli and Zardab fields form the largest onshore
oilfield of Azerbaijan.
Following the Company's additional capital raising announced on
January 30, 2017, the Board of Directors has decided to double the
number of workover rigs used in the Workover Programme. In addition
to the workover rig owned by the Company, currently undergoing
comprehensive reconditioning, Zenith has decided to use a second
rig operated by a highly experienced local drilling company.
As a result of the increased operational resources at its
disposal, the Company has decided to divide workover activities
between two teams: 'Team A' and 'Team B'.
'Team A' will be comprised of the Company's field staff,
operating the Company's rig. 'Team B' will be comprised of
contractors operating the workover rig of the aforementioned local
drilling company.
Workover of the M-195 and M-45 wells, the first two of ten wells
scheduled for recompletion in 2017, has been assigned to Team
B.
The continued employment of third party service providers will
be evaluated by the Board of Directors following the completion of
workover operations at wells M-195 and M-45. Zenith's strategic
preference is to use its own staff and resources wherever possible,
thereby ensuring better operational oversight and effective cost
management. Future alternatives being considered by the Board of
Directors include the purchase of an additional pre-owned workover
rig, or the purchase of a new Chinese workover rig to be financed
by the manufacturer.
The Company will provide regular updates on the progress of
field rehabilitation operations in Azerbaijan.
Andrea Cattaneo, Zenith Energy CEO, comments:
"The beginning of the first well workover signals the start of a
promising new phase in the Company's transformational operations in
Azerbaijan. Zenith is a production company run from the field with
a strong operational focus. Rather than creating fleeting
short-term excitement on each workover, Zenith is pursuing a
systematic and steady workover campaign which will bring our
sizeable reserves into production.
The addition of a second workover rig, following the recent
capital raising, will allow the Company to accelerate the pace of
field rehabilitation activities."
For further information, please contact:
José Ramón López-Portillo Andrea Cattaneo
Chairman of the Board CEO & President
Email: info@zenithenergy.ca
Telephone: +1 (587) 315 9031
Telefax: +1 (403) 775 4474
This information is provided by RNS
The company news service from the London Stock Exchange
END
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