Vincent McDonnell, Chief Financial Officer of CanArgo commented, "We are pleased to have moved into profitability in the last quarter, this being principally due to increased Oil and Gas Sales in the period. Our focus in 2004 remains to fully test and appraise our oil discovery in Manavi while moving ahead with our development program on our existing Ninotsminda Field and our newly acquired Samgori Field. Given access to the required funding, we would anticipate a capital program of some $40 million over the next 12 to 18 months on these projects.
"In the near-term, we intend to drill a new vertical oil well at Samgori commencing in July 2004. This should provide short-term additional production and so allow us to maximise on the current high oil price. Further horizontal development wells will commence when our custom-made under balanced coil tubing drilling unit ('UBCTD') arrives in Georgia in September 2004. On the exploration front, we intend to run casing on the Norio MK72 well in the next few days prior to drilling ahead. Preparation is already underway for a sidetrack of the M11 well which will commence when the UBCTD unit arrives. In the meantime, negotiations are progressing with an international drilling contractor for the drilling of the Manavi M12 and M13 appraisal wells, the first of which is expected to spud in July."
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