CanArgo Sidetracks Appraisal Well in Georgia

CanArgo Energy Corporation late Thursday issued an operations update on the Manavi M12 appraisal well that is currently drilling in the Georgia.

Using directional drilling equipment and services provided by Baker-Hughes, the Manavi M12 well has been sidetracked in an 8 1/2 inch hole to a depth of 15,360 feet (4,682 meters) close to the top of the higher pressure and more porous / permeable reservoir interval in the upper Cretaceous where a major hydrocarbon influx was observed in the original well bore.

A 7 inch casing has been run and cemented at this level so as to isolate the zone where the differential sticking occurred with the previous drilling. Once the 7 inch casing has been tied back to surface, we plan to drill ahead in a 6 1/2 inch hole for approximately 230 feet (70 meters) through the more porous reservoir zone and then perform an open hole drill stem test (DST) on this interval.

The DST would provide information on reservoir pressure, fluid type and flow rate before drilling ahead to the planned total depth (TD) of approximately 16,732 feet (5,100 meters). We expect to be doing this test towards the end of November and to reach the planned TD in the second half of December. Once the well has reached TD we would plan to run electric logs to confirm the presence of hydrocarbons in the deeper section prior to casing the well, and on demobilizing the rig test any additional intervals and conduct long term production testing as necessary.

CanArgo is an independent oil and gas exploration and production company with its oil and gas operations currently located in Georgia and in the Republic of Kazakhstan.

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