CanArgo Resumes Operations at Manavi M12

CanArgo Energy says that operations had resumed at the M12 well located on the Manavi oil discovery in order to prepare the well for the planned acid fracture stimulation treatment and to continue production testing the well.

It was previously announced following initial testing of the M12 well that a hydraulic acid fracturing treatment of the Cretaceous reservoir interval was planned and Schlumberger had been contracted to provide pumping equipment, chemicals and services to the Company. In order to prepare the well for the arrival of this equipment, CanArgo rig #2 was mobilized to the M12 site in August. The rig is currently rigged up and operations have commenced to replace the 2 7/8" production string with a 5" liner, and set a temporary plug to facilitate the acid fracturing operation. Schlumberger are expected to commence mobilization of the equipment to Georgia by the end of September and complete the fracture stimulation during October after which the well will be tested.

CanArgo is an independent oil and gas exploration and production company with its oil and gas operations currently located in Georgia.