The appraisal well is being drilled 250 meters to the west of Well No. 34, which was cased and logged last month. Well No. 34 was drilled to test the Jurassic and Triassic sediments but showed evidence of crude oil only in the Cretaceous sediments. After obtaining the necessary geological data, Well No. 34 was plugged and abandoned. Well No. 32 is now being drilled to a depth of 750 meters to appraise the extent of the Cretaceous pool in the western flank of Karatal Block.
KoZhaN LLP started its first re-entry into Well DLST-1, located in the southern flank of the Dauletaly Block, having commissioned an A-50 workover rig from MunaiService. The target for this re-entry is the Jurassic sediments encountered around 1,000 meters. KoZhaN's work program stipulates an additional re-entry, plus three new wells to be drilled in this block.
In late June, KoZhaN assigned the drilling project for the first "deep well" in Ogai structure to KazNigri Technical Institute and expects to receive it by the end of this month. KoZhaN is currently commissioning a front-end engineering design study to confirm the placement of the drilling pad(s) for the Ogai structure, which is located in the offshore sector of the Morskoe Block. The drilling rig tenders have been received and are in the process of being evaluated. Finally, KoZhaN has commissioned additional seismic processing and interpretation on the Ogai structure from SaratoyNeftegazGeophysica Co. (Russia) and expects to receive this additional subsurface information in several phases starting August 1, 2006.
Also in late June, KoZhaN received government confirmation for the 2006 work program for all three of its blocks (Morskoe, Karatal, and Dauletaly), along with approval for the gas utilization program of the Morskoe “A” structure currently on production. After receiving an earlier government approval to proceed into the Pilot Development Phase for Morskoe “A,” KoZhaN set the daily crude oil production from this pool at a sustained 2,600 bopd.
“We are pleased with the progress our Western Kazakhstan operations have showed to date,” said Al Sehsuvaroglu, Big Sky’s president and CEO. “We also note that the recent retaining of a third-party consulting form has been instrumental in timely reception all of the current approvals and permits. We now look forward to continue working on our approved projects without any further delays.”
Big Sky Energy Corp. is a U.S. junior oil and gas company looking to develop assets in the world's most prolific basins in order to become a leading low-cost finder of hydrocarbons. The company is currently operating in Kazakhstan's renowned pre-Caspian Basin.
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