Big Sky Energy Strikes Oil at Ogai Field, Morskoe Block, Kazakhstan

Morskoe Block, Kazakhstan
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Big Sky Energy's subsidiary, KoZhaN LLP, has discovered an oil pool in the Ogai Field which is located approximately 3km west of its producing Morskoe Field, in the Morskoe Block on the north-east shore of the Caspian Sea in Western Kazakhstan.

Based on seismic and petrophysical analysis, the Company believes that the Ogai Field is a faulted anti-cline, which was penetrated by two wells; Ogai No. 1 and Ogai No. 30, which were drilled and capped in the 1980's by the Soviets.

Well Ogai No. 30 is approximately 2km west of well Ogai No. 1, and is located at the crest of the structure. Penetrating only the Lower Cretaceous Formation, this well was perforated by the Soviets from 1,051m to 1,054m and from 1,134m to 1,139m, and flowed at 135 bopd on a 9mm choke and 365 bopd on a 5mm choke respectively.

Well logs at Ogai No. 1, which is located on the north-east flank of the structure, indicated oil pay at the Cretaceous, Jurassic, and Triassic horizons but was left untested by the Soviets. The Company re-entered this well to determine the down-dip extent of oil. Due to wellbore obstructions, the Company was only able to perforate and test the Lower Cretaceous horizon from 1,176m to 1,182m. This interval flowed clean 20 degrees API sweet crude at 450 bopd on a 13mm choke during a 48 hour test period.

Pressure transient test results from this well indicated severe near wellbore formation damage which was believed to have resulted from Soviet drilling, and suggested that higher inflow would be possible from future wells drilled and completed using modern practices.

Based upon the above test results, the Company believes that the Ogai Lower Cretaceous oil pool is approximately three to four times the areal extent of its Morskoe pool, and plans to drill approximately 10 wells to define and exploit this reservoir. In addition, the Company intends to investigate Ogai's Jurassic and Triassic potential by drilling wells to an average depth of 2,900m.

"This is a significant oil find," stated Mr. Al Sehsuvaroglu, the Company's President and CEO. "We are preparing to construct lease access and proceed with the development drilling of the Ogai Lower Cretaceous oil discovery, and are intent on exploring the sizable deeper Jurassic and Triassic potential in this field."


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