Afminex Encouraged by Charvak Field Development Wells

Preliminary well test results from the first two development wells on the 774 sq km Charvak oilfield in the Kyrgyz Republic have indicated that these wells are capable of production rates ranging from 80 to over 150 barrels of oil per day. These rates are well in excess of earlier projections of around 35 bopd per well.

Charvak wells Nos. 1 and 3 were production tested by a series of bailer runs to establish the inflow performance of the oil-bearing horizon, Bed Va. A detailed analysis of the well test data acquired has been conducted by reservoir engineers for Textonic Consulting Ltd, operators of the Charvak field and verified by independent consultants and pump vendors.

The main conclusions of the well tests can be summarized as follows:

  • Charvak Well 1
    Charvak Well 1 was initially drilled as an exploration well in February 2002. The discovery well was re-entered in February 2003 and deepened to the base of the reservoir. Net reservoir thickness of Bed Va is approximately 4.5m. Testing indicates that Bed Va has excellent reservoir characteristics and has a projected sustainable production capacity exceeding 150 bopd. The high permeability recorded in the well test corroborate observations from the recovered core data. The recovered core data also revealed extremely high porosity. Laboratory tests confirm Charvak oil as a high quality crude (API gravity of 35.6 degrees) with higher yields of light fractions.
  • Charvak Well 3
    Well 3 penetrated Bed Va over a 3.4m gross interval below a depth of 97m. Similar good permeabilities to Well 1 have been noted, backed up by recovered core which was described as having excellent porosity and permeability with open fractures. Based on the bailer runs and other testwork, Well 3 should be capable of production rates exceeding 80 bopd. Refinery analysis yielded crude gravity of 29.4 degrees API, again with good product yields. It is proposed that higher capacity progressing cavity pumps (PCP) be utilized for production purposes rather than the more conventional beam pumps already deployed in the region. Potential pump suppliers are currently being assessed. Assuming that suitable equipment can be obtained quickly, it is planned to commence first Charvak production from 3-4 wells within the next 6-8 weeks. The current development drilling program will continue with the aim of having 10 wells in production by June.

Crude oil sales are scheduled through the KPC Refinery operated by Petrofac, located approximately 15 km from the Charvak field with primary oil products destined for the domestic Kyrgyz market.

Afminex is earning up to a 50% interest in the Charvak prospect (via equity in Textonic Consulting) by spending up to US$1.35 million on development. Afminex currently has earned a 10% equity in the project. Proved and probable oil reserves within the Charvak 1A project area total 6.4 million barrels.