The well was drilled to a depth of 4,700 meters to develop shallow hydrocarbons in zones 3 to 9, and to evaluate the potential of deep reservoir zones 11 and 12. LAM 10/114 encountered hydrocarbons in zones 3, 4, 5, 6, 7, and 9. However, commercial quantities of hydrocarbons were not encountered in zones 11 and 12.
A dual completion was installed in the well. Reservoir zones 3 and 4 were produced through the upper completion string and tested at a rate of 1,458 bopd. Reservoir zones 5 and 6 were produced through the lower completion string and tested at a rate of 242 bopd. The rate for the lower completion is less than expected based on evaluation of the logs; accordingly, Dragon plans to re-perforate these zones at the earliest opportunity to increase production. Zones 7 and 9 were not tested for technical reasons. They will be accessed at a later date.
The Iran Khazar jack-up rig has been skidded to drill well LAM 10/115 from the refurbished LAM 10 platform. The well has a target depth between 3,700 and 4,300 meters.
The Astra jack-up rig, which has been contracted from Lukoil Shelf, is on schedule to commence drilling in September 2006 from the LAM 13 platform.
“I am pleased to advise that the company has completed well LAM 10/114, despite some technical difficulties encountered in the lower zones, and to have commenced drilling of well LAM 10/115,” said Hussain M. Sultan, Dragon Oil’s chairman. “Production from the Cheleken Contract Area is currently over 22,000 bopd and we hope to achieve a significant improvement in production by the end of the year as per our development plan. We are committed to making the necessary investment in order to grow production even further. This includes the upgrade and replacement of existing infrastructure, installation of new infrastructure, and acceleration of the drilling program.”
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