Baku, Azerbaijan, July 3
By Leman Zeynalova – Trend:
Canada’s Zenith Energy company will increase the oil output from M-45 well in Azerbaijan’s Muradkhanli field by more than three times, Mike Palmer, chief operating officer of Zenith’s Azerbaijan subsidiary told investors.
Zenith Energy is the operator of Azerbaijan’s largest onshore block of oil fields Muradkhanli-Jafarli-Zardab.
The company said in a statement that the work-over of the M-45 well at the Muradkhanli field has opened up a productive zone, and post-stimulation the well is flowing at a rate of 46 barrels of oil per day.
Predicted production, based on an inflow production curve on the well, shows that the company should be able to produce some 150 barrels of oil per day, said Zenith.
Reportedly, an electric submersible pump (ESP) is expected to be installed in the well during the third week of July.
"I am very excited about the successful flow achieved at M-45. It has been a lot of hard work and we are happy to be able to move on to other workovers,” said Palmer. “We can now progress with our workover program and have selected a series of high impact wells. We look forward to the next phase in the company's field development."
Zenith is now defining plans for the next two work-over wells.
Zenith holds an 80 percent participating interest in the three fields within the contract area – Muradkhanli, Jafarli and Zardab – while a SOCAR Oil affiliate company (fully owned by SOCAR) retains the remaining 20 percent. The duration of the agreement is 25 years, with a potential extension of 5 additional years.
Azerbaijan’s state oil company SOCAR and Zenith Aran Oil Company signed a Rehabilitation, Exploration, Development and Production Sharing Agreement (REDPSA) in March 2016 for a block that includes the Muradkhanli, Jafarli and Zardab oilfields. These fields cover an area of 642.2 square kilometers. Production under the Zenith banner began August 11, 2016.
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