KazMunaiGas Discovers Oil in Liman Block

KazMunaiGas announced an oil discovery at the Liman Block. The accumulation is located on the south slope of the Novobogatinsk Salt Dome 70 km west of Atyrau, Kazakhstan, and is in close proximity to the Novobogat Southeast oil field operated by Embamunaigaz.

An oil flow was evident at the first exploration well of over 1200 m depth from Middle Trias. Daily production rate is 24 m3 with 5mm choke. Three more pay horizons are forecast in the drilled section. The discovered 34 API light oil indicates considerable post-salt potential of the region that is currently under large-scale 300 km2 3D seismic survey. The company's 2011 work programme aims at detailed study and volumetrics in order to put the discovery into operation in the near future.

KMG EP's Chief Executive Officer, Kenzhebek Ibrashev, said, "Our success at the Liman Block resulted from several years of dedicated work, integrated studies and significant investment, which are now bearing fruit. In the new phase of our Company's development, exploration is becoming increasingly important. We work hard to expand our exploration portfolio, intensify our post-salt exploration program and plan to start drilling pre-salt wells in the near future."