SAGA Waiting to Thaw: Jan. Production Set Back by Cold Weather

SAGA Oil produced 12 150 barrels of oil in January.

The extreme cold severely affected the oil production. Several wells were shut down for a long period of time. The halt in production led to production problems, which partly have continued into February.

It was wells producing with a swabbing system that were affected by the cold in January. This is a production technique used in the startup phase of a well, until the well has cleaned up and yields stable output. Then permanent downhole pumps, which are not temperature sensitive, can be installed. Downhole pumps are now being installed on several wells.

Pipelines are now being installed from production pads to the main pad, this results in one delivery point for the oil. The roads to the main pad are of high standard and can be used in the period of spring thaw.

Well 111 has reached TD and open hole logging are conducted.

When well 111 is complete, the rig will undergo upgrading/certification for drilling till greater depths. Thereafter the rig will be moved to the location where P 10 will be spudded. This is SAGA Oils first exploration well targeting the deeper prospects identified by 3D seismic on the RODNIKOVSKY license. TD for this well is 3500 meter.

Well 107 will be spudded in week 8. This is a water injection well.

The rig has completed drilling well 123. The rig is moved and the well is ready for complementation, logging, perforation, swabbing for cleanup and stabilization, before installation of downhold pumps.

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