Caspian Sunrise has identified, in aggregate, 121 m of potential oil bearing intervals in drilling the 801 side-track, Kazakhstan.
Deep Well 801
As previously announced our plan to bring Deep Well 801 into production was by drilling a side track of between 450 - 500 m from a starting depth of 4501 m.
Having identified potential oil bearing (net-pay) intervals covering in aggregate 121 m so far during the drilling of the side-track, we have decided to stop the side-track at a depth of 4851 m and, after running and cementing a 5 in. liner to the full depth of the side-track, to test the well.
Four potentially oil bearing intervals have been identified during drilling and supported by mud log data. The first of 6 m between 4535 and 4541 meters; the second is of 20 m between 4554 and 4694 m; the third is of 59 m between 4635 and 4694 and the fourth is of 36 m between 4812 and 4848 m.
The pressure in Well 801 remains high indicating good connectivity. As the side-track has been drilled using lower density drilling mud we expect the task of getting the well to flow to allow testing to commence should be easier than previously drilled deep wells.
Deep Well A5
At Deep Well A5 work continues to prepare the mobilised rig to remove the pipe from the well and thereby clear the obstruction, which resulted in a suspension of the 90-day flow test towards the end of 2017. We expect to commence operations in the near future once the drilling mud in use at Deep Well 801 becomes available.
Pressure in the well remains high at 400 bar at the wellhead, which suggests there is still good communication throughout the length of the well.
Deep Well A6
Our plan with Deep well A6 remains to re-perforate the well using more powerful explosive charges.
The drill pipes to be used in this operation are currently in use at Deep Well 801 and work at Deep well A6 will not commence until the pipes at Deep Well 801 are released.
Acquisition of 3A Best
Further to the announcement of 31 January 2018, the company is pleased to confirm that the Sale and Purchase Agreement for the conditional acquisition of 100% of the shares of 3A Best Group JSC for a consideration of US$24 million to be satisfied by the issue of 149 253 732 shares at an issue price of 12p per share has been formally entered into. Completion of the Acquisition is now dependent upon the satisfaction of a number of post signing conditions, including the issuance of a new licence.
3A Best owns a Contract Area of 1347 km2 located close to the Caspian port city of Aktau in the Mangystau Province of Kazakhstan. The Contract Area is adjacent to and runs under the commercially successful Dunga field, which was discovered in 1966 and developed by Maersk Oil.
Based on an assessment of the geology Caspian Sunrise's technical team believe some of the geological characteristics of the Dunga Contract Area are also present at 3A Best. Additionally they believe the area 2500 m and below the Dunga Contract area, which forms part of the 3A Best Contract Area, also indicates the likely presence of oil.
490 km2 of 3D seismic has been shot. 1327 linear km of 2D has been digitised and reprocessed. C2 reserves, using the Soviet system of classification, of 3.67 million t (approximately 26.8 million bbls) have been assigned to the 3A Best Contract Area.
Two wells have been drilled on the Contract Area in recent years, both encountering water and signs of oil and gas, although neither was commercially successful.
For the year ended 31 December 2016 the loss after tax was US$1.4 million.
Caspian Sunrise would, by completing the acquisition of 3A Best, become responsible for the outstanding work programme commitment represented by the drilling of one well to a depth of 3000 m at an estimated cost of up to US$2 million.
Clive Carver, Chairman said:
"The identification of, in aggregate, 121 m of potential oil bearing intervals in drilling the 801 side-track allows us to move to the test phase sooner than was expected."
The lower density drilling mud used on this side-track should make bringing the well into test production an easier proposition than with our earlier deep wells where far denser drilling mud was the principal issue.”
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/29052018/caspian-sunrise-identifies-121-m-of-potential-oil-bearing-intervals-in-kazakhstan/