In the Manavi 12 well the 7 inch casing was successfully run and cemented at a depth of 15,360 feet (4,682 meters) in the Upper Cretaceous. The well was then drilled in a 6 1/2 inch hole to a depth of 15,735 feet (4,796 meters) penetrating the higher pressure and more porous / permeable reservoir interval previously encountered in original well bore where a major hydrocarbon influx was observed. Hydrocarbons were again recorded in this zone. At this point, it was planned to perform an open hole drill stem test (DST) on this interval with Baker Hughes providing the down hole testing equipment, in order to obtain interim flow and pressure data. Unfortunately, due to on going delays encountered by Baker and its shipping agent initially in Russia and later in Azerbaijan, the DST tools have not yet arrived in Georgia. It is now believed that it would be at least another six days before the interim test could begin. With the Saipem rig and crew having already been on stand-by for a week, and with continued uncertainty as to the delivery date of the DST tools, the costs have become prohibitively expensive to remain on stand-by so it has been decided to drill ahead to the planned total depth (TD) of approximately 16,732 feet (5,100 meters) and then carry out a full production test on the well. We expect to reach TD by the end of the year, then run electric logs and case the well prior to the production test.
The well is currently drilling ahead at 15,761 feet (4,804 meters).
Operations have commenced at the Kumisi site, where it is planned to drill a well to test an up-dip extension of a Soviet era gas discovery. The well will be drilled to a planned TD of approximately 12,140 feet (3,700 meters) in the Cretaceous using CanArgo Rig #2 which is being mobilized from the Norio location. The well will be spudded once a drilling permit has been obtained. This is being temporarily delayed due to an ongoing reorganization of the State Regulator for Oil and Gas Resources in Georgia, the body responsible for issuing permits, but it is hoped that the matter will be resolved prior to the end of the year. In the meantime, and in order to avoid any delays with commencing the well, the Prime Minister of Georgia has provided CanArgo with a letter indemnifying the company for any liabilities which may arise from operating on the site.
Earlier this year it was announced that the company's subsidiary CanArgo (Nazvrevi) Limited had signed a Memorandum of Understanding with the Georgian government which commits the government to purchasing any gas discovered at Kumisi on agreed commercial terms on a take-or-pay basis.
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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