Following the recent visit by a Schlumberger representative to Georgia, Schlumberger have now confirmed that the pumping and ancillary equipment, the coiled tubing unit and the nitrogen unit which are required for the hydraulic acid-fracturing of the M12 well, drilled to appraise the Manavi Cretaceous oil discovery, are available for mobilization. The equipment is located in four different countries and, as a result, Schlumberger's shipping agent will only be able to commence the coordinated mobilization process on December 19, 2007. It is anticipated that it will take up to three weeks for the equipment to arrive on site at M12.
The acid required for the stimulation operation has arrived in Georgia and has been delivered to the well site. In the meantime, well preparation operations at M12 are well advanced. The temporary plug has been set in the well and this will allow for the correct placement of acid across the desired carbonate reservoir interval during the fracturing operation. Laboratory tests performed by Schlumberger have shown that cuttings samples from this interval demonstrate very high solubility in acid, thus confirming that acid fracturing is the best option to stimulate this type of formation. The 5" workstring required to help maximize pumping rates and the packer have been run in the well. The operator is now preparing to set the packer and pressure test the completion, after which the well will be fully ready for the acid fracturing job.
Vincent McDonnell, President and Chief Executive Officer commented, "I am pleased that we have finally obtained a firm date for the mobilization of the fracturing equipment to Georgia so that we can finalize our plans and proceed with operations at M12. The considerable engineering and technical input which has gone into preparing the well for the fracture stimulation and into the treatment design itself should minimize any operational risk in achieving the desired stimulation and thus enable us to properly flow test the well. We can now look forward to the continued testing of this potentially significant new oil discovery at Manavi which should take place during January 2008."
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