BMB Munai Re-Enters Well in Borly Field

BMB Munai, Inc. reported that its drilling contractor, Great Wall, has placed a 150-ton rig on-site and commenced re-entry operations on Borly 2 well located on the Borly structure on the company's extended territory in western Kazakhstan.

MangyshlakMunaiGas, a subsidiary of the Kazakhstani National Oil and Gas Co, did the original drilling of the Borly 2 well in 1995 to a total depth of 3,225 meters. The well targeted the Triassic formation, which was penetrated at 2,382 meters. The well was then cased to a depth of 1,900 meters. Despite the presence of hydro carbonates in the actual core samples, it was concluded that further work on the well was not warranted due to the instability in the wellbore and the results of the initial well logging.

"The well logging made in 1995 gave incomplete information,” said BMB Munai Chief Operating Officer Gamal Kulumbetov. “Because of the limited financial resources available at the time, geologists were under time constraints to complete their research rapidly, using the limited technologies available to them. The difficulties in making an appropriate evaluation were further increased by the crumbling within the wellbore and the lack of means to respond to this difficulty."

"Current technology will allow the company to get more precise well logging and gain valuable insight into the Borly structure,” added Kulumbetov. “Our decision to re-enter the Borly 2 well was guided by results of interpretation of a 3D seismic study completed by the company in March of 2006. Based on the results of the 3D seismic, we will seek to confirm the presence of oil and gas in the Borly structure in the carbonate reservoirs of Triassic formation, which we believe are similar to the carbonate structures located in the company's nearby Dolinnoe field."

The existing wellbore will be reamed and cleaned to the depth of 3,225 meters. BMB Munai will then conduct electric logging and drillstem testing to further determine the potential of the well. The company has scheduled three months to complete these activities. If perspective pay zones are identified, it expects to start testing intervals in October 2006. It is estimated that interval testing will require a minimum of 30 days per interval. BMB Munai has budgeted $2.5 million to complete this project.

BMB Munai is an independent oil and gas company engaged in the exploration, development and production of crude oil and natural gas in western Kazakhstan. The company maintains administrative offices in Almaty, Kazakhstan and Salt Lake City, Utah.

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