CanArgo Energy Reaches Total Depth at Kumisi #1 Appraisal Well

CanArgo Energy Corporation announced that the Kumisi #1 appraisal well in Georgia has been successfully drilled to a total depth of 11,841 feet (3,609 meters) in the Cretaceous having encountered gas shows over a significant interval.

The Kumisi #1 well was drilled to appraise the West Rustavi #16 Cretaceous gas condensate discovery made in Soviet times but never previously appraised. The well is located 7.4 miles (11.9 kilometers) to the west of the original discovery well, which encountered the top Cretaceous some 2,820 feet (860 meters) deeper.

A total Cretaceous interval of approximately 2,392 feet (729 meters) was penetrated in the Kumisi well. This section is comprised of an upper carbonate sequence, interbedded limestones and tuffs underlain by more massive volcanics. Wireline logs run in the well and high background gas readings recorded while drilling indicate a potentially significant hydrocarbon column in the well with no indication of a hydrocarbon-water contact. A 5" (130 millimeters) solid liner has been run and cemented in the well to a depth of 11,539 feet (3,517 meters) below which an uncemented slotted liner has been run.

The Company is now preparing the well for an extensive well testing program. Testing is expected to commence within the next two weeks and will initially focus on the slotted liner section, which is run over a potentially fractured volcanic interval where elevated gas readings were recorded during drilling. This will be followed by the testing of separate additional zones in the cased hole section. Up to three separate intervals will be tested with the current planned well completion which is to be run at approximately 10,650 feet (3,246 meters) before moving further up the hole to conduct further testing.

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


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