Big Sky Launches Deep-Drilling Campaign in Pre-Caspian Blocks

Big Sky Energy Corporation said that it has finalized its deep drilling tender evaluation. The winner (Upetrom Foserco) has been notified by an official letter on Aug 8, 2006. The contract is in the process of being finalized on details such as waste and environment management, material supplies, etc.

The rig tender was conducted on full turnkey basis for 3 deep wells - one directional well (3100m) in the Ogai structure (Morskoe Block), one vertical well (2800m) in the Dauletaly Block and one vertical well (2800m) in the Morskoe B pool (Morskoe Block). The estimated total contract cost for the three wells using the Upetrom rig is $10,661,181 or $3,308,727 per well.

The new well in Ogai structure will be named Ogai-18. The exact coordinates of the wellhead and final bottomhole locations are being finalized. Selection will be final once the reinforcing of Ogai-1 drilling pad is completed. Ogai-18 wellhead will offset Ogai-1 by a few meters, whilst the bottomhole location will be near Ogai-30 location where the structural apexes of Jurassic and Triassic reservoirs are located. The new well will be situated approximately 2.3 km from Morskoe A pad and 1.4 km from Ogai-30.

The various targets of Ogai-18 are primary an oil reservoir in Aptian (Lower Cretaceous), a potential oil reservoir in Callovian (middle Jurassic), with additional potential oil reservoir in Triassic horizons. Both Ogai-1 and Ogai-30 tested oil and gas in Lower Cretaceous (Aptian) with Ogai-30 historically yielded oil and gas from a number of zones with a maximum production of around 1,100 bopd. Ogai-1 tested at 300-400 bopd in a recent test on March of 2006.

Big Sky believes based on historical data received regarding nearby fields that the reservoirs it is targeting with these new wells have significant potential. Big Sky's President, Mr. Al Sehsuvaroglu said, "We are very excited with this development as it furthers the company's exploration and production activities in the region."

Currently, the work is being completed to put Ogai-1 on test production for 3 months. The road and pad are being repaired and bermed-up. Regulatory correspondence work has been completed and necessary permits were obtained.

Big Sky Energy Corporation is a US junior oil and gas company looking to develop assets in the world's most prolific basins in order to become a leading low-cost finder of hydrocarbons. The Company is currently operating in Kazakhstan's renowned pre-Caspian Basin.