Manas Drills 2nd Shallow Well in Kyrgyzstan, Albanian Project Moves Forward
Manas Petroleum reports that drilling of its second commitment (to the Kyrgyz government) exploration well at the Huday Nazar prospect in the Soh license area has reached a total depth of 2213m and is currently being evaluated.
A thick Jurassic coal and sandstone sequence was penetrated in the deeper hole section and initial evaluation of mudlog gas shows with wireline logs is underway. Assessment of shallower hydrocarbon anomalies in the Paleogene section suggests they are not currently commercially feasible, however the geological model has been confirmed. The well data (mudlog gas shows with wireline logs) is being evaluated in conjunction with recently obtained seismic data to best determine a future drilling location to gain commercial feasibility.
Erik Herlyn, Chief Executive Officer of Manas Petroleum, comments: "Drilling the Huday Nazar SPC-1 (Soh License) well has showed our commitment to the Kyrgyz government, and provided valuable and encouraging information about the geologic section and the general petroleum prospectivity of the permits. A potentially significant Jurassic oil-gas-condensate play is clearly present in the Soh permit area, in addition to the oil-dominated Palaeogene play. By drilling the North Ayzar-1 (Tuzluk license) well and the Huday Nazar SPC-1 (Soh License) well SPC has fulfilled this year's commitments in its priority exploration areas, according to the License Agreements with the Kyrgyz government. South Petroleum Company is now focusing on the 2010 well program, which will include the drilling of deeper prospects delineated by the recent seismic acquisition."
In addition, Erik Herlyn comments, "Our focus right now is to finalize the financing of our large exploration project in Albania. Management is actively refining negotiations and will decide which arrangement best enhances shareholder value." Manas now controls 100% working interest in six giant exploration blocks near Europe's largest onshore production. Independent reports from Gustavson (2008) assign (P50) of 3 billion barrels in block A, B, D and E (12.3 Billion Oil in Place) which Manas controls. Two of Manas' four blocks are now drill-ready. The council of ministers recently ratified the production-sharing contract on the two former Oxy blocks to DWM Petroleum, a subsidiary of Manas. These blocks are within the area where most of Bankers Petroleum's current shallow oil production derives from. Manas has the rights to explore the deeper targets in block two where Bankers is producing oil, and where in 2001 Occidental made a light oil discovery. A 51-101-compliant estimate is now being prepared.