CanArgo Places Georgian Well on Production

CanArgo Energy reports that the horizontal well N4H, in the Ninotsminda Field, in the Republic of Georgia has been extensively production tested and has now been placed on production at a rate of over 1,000 barrels of oil per day, more than doubling field production.

The well is a horizontal sidetrack from an existing well bore in the Middle Eocene reservoir at approximately 2,356 meters. The horizontal production section extends some 400 meters in the west central area of the field between the N4 and N49 wells. The Middle Eocene is a fractured reservoir, which is best exploited through horizontal drilling, as demonstrated by the previous horizontal well, N98H.

CanArgo Chairman and CEO Dr. David Robson commented, "We are delighted by the results of this horizontal well with the significant increase in production. Existing production for Ninotsminda has remained broadly stable over the last six months and we expect this well to produce consistently, as does the other horizontal well. Several other locations for further horizontal sidetracks exist on the field, and through this program we intend to balance our portfolio with lower risk development wells targeting proven reserves. The suspended Manavi and Norio exploration wells are secure and drilling of these high potential prospects will be completed when suitable partners are found. Our cost cutting measures are beginning to filter through and we expect this and the additional revenue to hit our bottom line immediately."