9th Oct 2019 09:09
(Alliance News) - Shares in Zenith Energy Ltd rose on Wednesday after continued flow testing of the C-37 well in the Jafarli oilfield in Azerbaijan led to a significant uplift in the company's expected production.
Shares in the oil & gas company were 52% higher at 3.61 pence on Wednesday in London.
Flow testing of well C-37 recorded a production rate of 285 barrels of oil per day, more than double of Zenith's current daily oil production.
Well C-37 is expected to generate USD5.5 million in revenue per annum, and Zenith said it could further increase the rate of production by further simulating the well, through swabbing operations.
In addition, Zenith said it expects to start mobilising its drilling rig to the C-30 well location before the end of October.
"We are pleased with the success we have achieved at well C-37. The additional production, and associated net cash flow, is extremely positive and indicates that we are progressing with our strategy of materially increasing our oil production in Azerbaijan. I look forward to updating investors in due course regarding the mobilisation of our drilling rig to the C-30 well location," said Chief Executive Officer Andrea Cattaneo.
By Dayo Laniyan; [email protected]
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