3rd Oct 2019 10:57
(Alliance News) - Zenith Energy Ltd on Thursday said it has completed the drilling of well C-37, located in the Jafarli oilfield, Azerbaijan.
The oil & gas production company confirmed that well C-37 has been drilled to a total depth of 4,350 metres, accomplishing both its operational objectives of penetrating the unexploited intervals of the Middle Eocene formation, as well as testing the fluid content of the previously unexplored Upper Cretaceous formation.
Oil and gas shows recorded during drilling of these intervals indicated the presence of favourable reservoir facies, Zenith said.
Wireline logging of the Upper Cretaceous formation target zone has confirmed the consistence of clay and carbonate facies, and provided indications surrounding the potential productivity of the formation across the company's Azerbaijan asset, it said.
Zenith said it was decided to perform a cement plug operation to isolate the Upper Cretaceous formation and put the well in openhole production from the Middle Eocene formation.
Initial testing of the well has indicated that well C-37, if placed on full production, can produce up to 100 barrels of oil per day.
Looking ahead, the company said it will now perform a series of technical inspections on its drilling rig prior to it being rigged down in preparation for mobilisation to the next drilling location in the Jafarli oilfield, well C-30.
"The board of directors is delighted with the result at C-37. Not only have we successfully concluded our first drilling operation in Azerbaijan utilising our own rig, but we are also on track to sizeably increase our daily production of oil," said Chief Executive Andrea Cattaneo.
"We now look forward with confidence to drilling operations in well C-30, the next well in our work programme, where all geological and technical data suggests we might achieve an even stronger result," added Cattaneo.
Zenith shares were trading 27% lower in London on Thursday at 2.80 pence each.
By Evelina Grecenko; [email protected]
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