Zenith Energy Ltd Success of sidetrack at well M-195 in Azerbaijan (0899H)
June 05 2017 - 2:40AM
UK Regulatory
TIDMZEN
RNS Number : 0899H
Zenith Energy Ltd
05 June 2017
ZENITH ENERGY LTD.
("Zenith" or the "Company")
Success of sidetrack operations at well M-195
Calgary, Alberta, June 5, 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 successful drilling to a depth of 3,050 meters at well
M-195. A Neutron Log has subsequently been run which has confirmed
a net oil payzone of 8 metres. Initial flow rates of 149 barrels of
fluid per day have been recorded at this well. A steady and
increased rate of production is expected to be achieved over the
next few weeks and the Company will provide a revised production
rate announcement as soon as this has been determined.
Zenith is very pleased with the successful progress at well
M-195. Workover operations at M-195, as previously announced, had
been assigned to an external drilling company, given the name of
'Team B', operating its own workover rig. This team has performed
well and the decision to perform a sidetrack has clearly now shown
to be correct. The prompt well flow encountered evidences the
superior integrity of the reservoir in the area surrounding the
original well location. The Company intends to install an Electric
Submersible Pump ("ESP") to further improve production at M-195
which is solely flowing with natural reservoir pressure; flow rates
can be further increased with the use of nitrogen.
Zenith CEO, Andrea Cattaneo, commented:
"This favorable result clearly displays Zenith's
transformational opportunity in Azerbaijan and confirms the
validity of the decision to perform a sidetrack after the initial
difficulties encountered at well M-195. Team B has done well and I
commend them as well as Zenith's technical team for the success we
have achieved at M-195.
This result is just the beginning and, I am confident in saying,
the first of many incremental production increases that will be
achieved through our systematic field rehabilitation programme. It
should be underlined that our target remains to achieve 1,000 BOPD
by March 31, 2018. Zenith has very sizeable oil reserves,
especially relative to its market capitalisation, and the challenge
lies in finding the most efficient and cost-effective equation to
achieve successful production increases with various workovers and
other CAPEX activities.
Zenith is an energy company with a systematic CAPEX programme
rather than an explorer focusing on the success of any individual
CAPEX operation for continuity. The Company's performance at well
M-195, whilst with an initial unforeseen delay, proves that we have
found this balance by achieving success with very contained
expenditure, especially when considered in relation to the
significant revenue increase that will be obtained.
Mike Palmer's arrival as COO will certainly enhance the process,
increasing our technical skillset and improving our operational
speed and quality of execution. Mike is currently assembling a team
of highly experienced engineers who have excelled in Azerbaijan
with onshore field rehabilitation operations very similar to
Zenith's. It should also be added that Mike Palmer plans to revise
the choice of wells included in the workover programme and
modernise the technology employed."
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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