BMB Munai Completes Acid Treatment on Dolinnoe Well

BMB Munai, Inc. has announced initial results of acid treatment of the Dolinnoe 3 well conducted by Schlumburger on its behalf. During the 10 days following completion of the acid treatment, the well has produced between 460 and 630 bpd while being tested using chokes between 6mm and 10mm in size.

BMB retained Saipem to drill the Dolinnoe 3 well to the depth of 3,800 meters to reach carbonate formations of the Middle and Lower Triassic formations. The drilling was completed in September 2005. During initial testing, the company was able to perforate only 17 of 24 meters of the producing interval because of intensive oil and gas shows. Subsequently, perforation of the remaining 7 meters of the interval was disrupted when tubing was impacted by the heavy drilling mud components, and the blowout preventer was damaged, which required the forced killing of the well.

Although BMB was able to restore limited oil production from the well, the production was substantially lower than the well's initial test production performance. The company has conducted numerous tests during the past six months in an effort to increase daily production rates to levels consistent with management expectations.

"The initial results of testing Dolinnoe 3 indicate that we have finally developed a suitable hydrochloric acid formula needed to conduct effective acid treatment of carbonate formations with temperature and pressure conditions characterized by the Dolinnoe field," said Gamal Kulumbetov, BMB's chief operating officer.

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 Salt Lake City, Utah, and Almaty, Kazakhstan.

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