Zenith Energy Ltd Zardab Field Operational Update (1446U)
October 20 2017 - 2:00AM
UK Regulatory
TIDMZEN
RNS Number : 1446U
Zenith Energy Ltd
20 October 2017
October 20, 2017
ZENITH ENERGY LTD.
("Zenith" or the "Company")
Zardab Field Operational Update
Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; TSX.V:
ZEE), the dual listed international oil & gas production
company operating the largest onshore oilfield in Azerbaijan, is
pleased to announce an operational update on wells Z-21 and Z-28 in
the Zardab field, Azerbaijan.
The Company's operational team is routinely performing checks on
a number of wells across the Zardab field.
The Company has recently carried out an intervention in the Z-21
well, specifically by coiled tubing and wireline, without the use
of a workover rig. Well Z-21 had been shut-in since 1988 and no
surface pressure had previously been recorded in well
inspections.
Well Z-21 has periodically been flowed since the completion of
this work, producing at a rate below 5 BOPD with negligible
wellhead surface pressure recorded. On account of this low
production it was decided not to flow the well for a period of two
weeks.
On October 18, 2017, an unforeseen build-up in pressure caused a
blowout after the failure of a flange on the wellhead. The
Company's field personnel immediately sealed the well and replaced
the broken flange. Zenith's environmental team arrived on-site
within 15 minutes and the Z-21 wellsite has now been
environmentally restored.
A subsequent well test on October 19, 2017 observed that the
surface pressure of well Z-21 had substantially increased and
stabilised at 30 atmospheres (atm), with a peak surface pressure
reading of 90 atm. The Company's operational team views the
significant increase in pressure as highly surprising, especially
as previous well tests had, as aforementioned, recorded very low
surface pressure.
The Company cannot forecast the potential post-workover oil
production achievable from well Z-21 on the basis of the high
pressure now recorded at this well, but the data strongly confirms
that there is significant bottomhole pressure with large quantities
of oil to be produced. Well tests will continue to take place until
the ZJ-30 180 tonne workover rig, currently engaged in the workover
of well Z-28, is scheduled to arrive in November 2017.
Update on high-impact workover of well Z-28
The Company is pleased to provide an update on the workover of
well Z-28. This is the most significant workover that the Company
has undertaken since Zenith began operations in Azerbaijan.
Well Z-28 has been cleaned out with all tubing removed to a
depth of 2922 metres. The next task is to perform a well cleanout
down to the liner top at a depth of 3568 metres. The Company's
petroleum engineers are regularly examining data collected from the
well in order to clean out the liner and maximise the potential
success of the workover. A quad neutron log has been run to the
depth of 2922 metres, providing the most advanced well log recorded
in the Zardab field. Whilst this technology has not yet been run
through the productive series of the well, it has provided highly
valuable information that is now being analysed.
Mike Palmer, Chief Operating Officer, Zenith Aran, the Company's
Azerbaijan-based fully owned subsidiary, commented:
"Zardab is a young, hugely unexploited field with original high
reservoir pressure. The blowout at Z-21 confirms Zardab's vitality
and abundance in oil. I have had a lot of oilfield surprises in my
37 years of activity in the industry, most of them bad. The very
high pressure generated without warning in Z-21 is not only a
surprise, but a complete shock. Indeed, I was fortunate enough to
view this first-hand whilst on location. Our small, inexpensive and
systematic well interventions are paying off. There is a lot of
work to be done before we can produce the well, but we expect a
successful workover of Z-21 to generate significant production.
I am pleased with the rapid progress achieved at Z-28. This is a
challenging workover and we have been able to overcome all the
problems that we have encountered. The next few weeks will be slow
and difficult, but we are confident that we can get the job done
successfully. We have assembled one of the most talented
operational teams in the region."
For further information, please contact:
Zenith Energy Ltd.
Andrea Cattaneo
Chief Executive Officer
Email: info@zenithenergy.ca
Tel: +1 (587) 315 9031
Fax: +1 (403) 775 4474
Optiva Securities - (Joint Broker)
Christian Dennis
Tel: + 44 (0) 203 137 1903
Beaufort Securities Limited - (Joint Broker)
Jon Belliss
Tel: +44 207 382 8300
Allenby Capital Limited - (Financial Adviser)
Nick Harriss
Nick Athanas
Richard Short
Tel: + 44 (0) 203 328 5656
Yellow Jersey (Financial PR/IR)
Tim Thompson
Tel: +44 (0) 203 735 8825
This information is provided by RNS
The company news service from the London Stock Exchange
END
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