MOL Logs Pay from Zhaik 1 Well in Kazakhstan

MOL Hungarian Oil and Gas Company, operating shareholder of Ural Oil and Gas LLP which holds the exploration contract for the 2400 sq km Federovskoye Block in Northern Kazakhstan adjacent to the giant Karachaganak gas and condensate field, announces the suspension of the Zhaik 1 well at a depth of 5844 m after recovering gas, condensate and light oil from pre-salt Carbonate formations of Lower Permian and Carboniferous age. The liquid hydrocarbons were of high quality with no measurable sulphur or H2S and gravity of 46 API. The basal 400 m of the well were drilled utilizing slim hole technology. This interval was tested by an open hole drill stem test. Due to mechanical limitations of using test equipment in the small diameter well-bore, only limited volumes of well fluids were produced. For safety and mechanical reasons, standard drill stem testing was not an option.

Ural Oil and Gas is now preparing to drill its remaining commitment well on the Block, Zharsuat 5, to a planned depth of 5500 m, spudding in December. Additional seismic and drilling on the Zhaik structure is anticipated to evaluate commerciality. Interest holders in the contract for the Federovskoye Block are MOL Caspian (27.5%), First International Oil Corporation, a subsidiary of SINOPEC International (22.5%), and Exploration Ventures Limited (50%).