Caspian Holdings Logs Oil Pay at Zhengeldy Well

Caspian Holdings announces positive results from the drilling campaign at its Zhengeldy oil field in Kazakhstan. Analysis of open hole log results from the latest well 119 show a net pay of 21.4 meters across 4 oil bearing zones.

Well 119 was drilled to a depth of 330 meters in the centre of the Zhengeldy field. Analysis of the open hole log results shows four oil bearing reservoirs between 210 and 319 meters. The combined Net Pay is 21.4 meters with average Oil Saturation of 64% and average Porosity of 31%.

The biggest pay of 8.1 m is across the best producer in the field, Sand 7.0 (with top 267 m and base 282 m). The well has been cased and the production testing of this level will be conducted in November.

During the months of September and October extensive workover operations have been conducted on eight wells including a number of the recently drilled wells to improve on overall performance in the field. Work has been completed on wells 118, 102, 103 and 109 and these are now being brought back into production. Workovers are underway or forthcoming on wells 113, 101, 114 and 104 and we expect these wells will be back in production in early November. Taking the wells temporarily off line has reduced production rates for the period of the workovers.

Results for the September 2006 quarter are as follows:

  • Oil shipments to Karask down 8% to 17,245 barrels (18,718 barrels June Quarter)
  • Oil export sales to Primorsk up 200% to 21,600 barrels (7,200 barrels June Quarter)
  • Export revenue received up 215% to USD 1.3 million (USD 0.4m June Quarter)

Field production is down as a result of the decline in production in well 103 and the workover program which has taken 8 wells off line. As previously reported, unlike other wells in the Zhengeldy field, production from Well 103 had been previously driven entirely by reservoir energy (without assistance of a downhole pump). The well produced oil with small quantities of gas at high rates on an eruptive basis. A re-interpretation of open hole logs identifies a gas cap above an oil rim at the level where 103 is perforated and the current perforation straddles the present gas-oil contact. The existing perforations will be squeezed off and new perforations made only across the oil column. Future production from Well 103 will be through artificial lift like other wells in the field to boost its production.

Exports are significantly higher reflecting a full quarter of exports and the benefit of high oil prices during the period.