PetroKazakhstan Logs Pay on its Kolzhan License

PetroKazakhstan says three out of four wells on the Kolzhan license drilled this year have been successful, encountering and testing oil.

The Kolzhan license is adjacent to the Northern margin of the Kyzylkia field, which is currently being developed. Two exploration wells encountered 2.6 metres and 9.4 metres of net pay and produced 250 bopd and 700 bopd respectively in the Cretaceous formation, a well-established oil bearing horizon in the South Turgai basin. Of more significant importance are the results from the most recent well, KK-43 drilled into a previously untested basement formation at a total depth of 1,576 metres. The well encountered 262 metres of carbonate formation with at least 10.2 metres of net pay. Initial testing has resulted in flow rates of 120 bopd. Further well stimulation operations, typically applied in fractured carbonate reservoirs such as acid fraccing, will be conducted along with additional production testing.

These wells have established the presence of a significant new dual reservoir field, separate from the Northern part of the Kyzylkia field but close to main Kyzylkia production facilities.

Mike Azancot, Senior VP, Exploration and Production, commenting on these discoveries said; "We are very excited by the results of this Kolzhan drilling campaign, particularly well KK-43 which confirms our belief that there is significant reserves potential within the Pre-Mesozoic Basement section. It is very encouraging that we have been so successful with our first test in this section. We will now plan to drill an additional three to six wells in this area before the end of the year. With this successful test, we are reviewing a number of other Pre-Mesozoic Basement opportunities throughout our extensive prospect portfolio. These successful wells illustrate PetroKazakhstan's ability to continually apply modern exploration concepts to develop new plays and prospects and to add reserves through exploration."