Zhaikmunai Cites Positive Test Results for Kazakh Well

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Zhaikmunai has reported the results of tests at its future production well #20 situated in the northeastern part of the Chinarevskoye license area.

The well tested the Biski & Afoninski reservoir in the non-cemented casing in interval 4,806-5,409 m. On a 12-mm choke with a depression of 190 bars extrapolated, which is approximately 33 percent of the formation pressure, the well flowed 12.179 million cubic feet (MMcf) of natural gas and 2,016 barrels of condensate per day at a separator pressure of 25 bars from the Middle Devonian Biski & Afoninski carbonate formation. The formation was acid treated prior to test operations.

The multi-rate test of the Biski & Afoninski reservoir was carried out in the upper of two side-tracks drilled out of the existing 7" casing of well #20 at 4,800 meters. The well was deviated down to 5,095 m and drilled horizontally from 5,095 m to a final depth of 5,425 m.

Well #20 was originally drilled as an appraisal well at a multi-target location in the northeastern part of the Chinarevskoye license block. The well tested successfully the Middle Devonian Biski & Afoninski horizon and was producing from the Lower Carboniferous Tournaisian horizon as a production well from 2005 through 2009. It is expected that well #20 will be used as a production well from the Biski & Afoninski gas condensate reservoir when Zhaikmunai's gas treatment plant, currently under construction, commences operation. The multi-rate test of the lower side-track of well #20 is scheduled for March-April 2010. The expected total start production rate for both side-tracks for well #20 is estimated at 14.1 MMcf of natural gas and 2,200 barrels of condensate per day.

Kai-Uwe Kessel, CEO of Zhaikmunai said, "This is the second horizontal well which has now been successfully tested at the Chinarevskoye field. The test results have met our expectations and are a further step forward towards Zhaikmunai's planned production ramp-up."


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