Agip KCO: Successful Well Tests at Kashagan Island A

ALMATY, Kazakhstan, May 24, 2007 (Dow Jones Newswires)

Agip KCO that operates the Kashagan oil field in the Kazakh part of the Caspian Sea said Thursday that well tests at Island A confirmed the preliminary evaluation of initial yield of over 35,000 barrels of oil a day, the Interfax news agency reported.

Agip KCO said it was satisfied with the drilling and that the well test results enable a potential yield of over 120,000 barrels a day for all the wells at Island A, Interfax reported citing a company statement.

Kashagan holds oil reserves of up to 13 billion barrels.

Agip KCO has drilled six exploration, thirteen confirmation and ten production wells on the artificial island in the Caspian Sea, Interfax said.

The company is currently drilling three confirmation and two production wells, the report added.

The start of oil production at Kashagan has been delayed until 2010 for environmental and technical reasons causing tensions between shareholders and the government.

Eni SpA (E), ExxonMobil Corp. (XOM), Royal Dutch Shell PLC (RDSB.LN), and Total SA (TOT) each hold an 18.5% stake, while ConocoPhillips (COP) has 9.3%. Kazakhstan's state-owned Kazmunaigas and Japan's Inpex Holdings Inc. (1605.TO) each own 8.3%.

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