Atlantic Caspian starts production Kazakh oil
Feb. 5, 1998 Atlantic Caspian Resources (ACR) has announced the successful completion of a production test of its
Number One well in the Company's Kamenistoye field in the Aktau region of Kazakhstan.
The well was opened to test on Dec. 24, 1997 and flowed at a stabilised rate of 552 bpd on a 20/64th choke at 275 psi flowing pressure.
ACR stated that despite the ambient temperature of the well head being 25C the well continued to flow favourably in accordance with original estimates made by the Company's geologists and engineers. Following the production test, the well was shut for pressure build-up and built to the initial shut-in pressures in less than 12 hours.
Douglas Biles, CEO, reported that they had purchased a variable flow electric submersible pump which will be located in the well bore at approximately 7,000 feet.
Biles stated, "We will now place this well into full commercial production, and will commence full commercial delivery during the first quarter of this year. We anticipatebeing able to deliver between 1,250 and 2,250 bpd to the market from this well.
"ACR's independent engineers, Troy Petroleum Management, have been conducting further analysis on the Kamenistoye field and a report from Troy Petroleum is expected within the next two weeks."
With regard to infrastructure and support services, Biles added, "We have purchased the tankage and pipeline necessary to connect the field to the oil treatment facility at Zhetabi, which is located nearby at a distance of 3 km. The Zhetabi facility has agreed to treat the oil prior to the export pipeline injection point at the same location.
"I can also confirm that our field surface facility is in an advanced stage of construction, and will shortly be ready to receive our anticipated production."
It is the Company's intention to conclude a sales contract with one of a number of potential purchasers that have indicated a desire to acquire Atlantic Caspian's anticipated production for 1998.
ACR further announced that on completion of the necessary work on well Number One, it will proceed to work over 3 additional wells in the field, with the objective of bringing these wells into commercial production as soon as possible.
Biles stated, "I am confident the Company will be producing and delivering to market in excess of 6,000 bpd by the end of 1998."
ACR announced in October 1997 that it had completed the acquisition of Anglo Caspian Oil which has a joint venture for the exploration and production of oil from the Kamenistoye field. The terms of the deal give Atlantic Caspian management and operational control, 70 % of the income from the field, $ 1 million in cash and recoverable reserves of 9 mm barrels.
In October 1997 Atlantic Caspian entered into an option agreement to acquire all of the shares of East Caspian Oil Limited. The option provides for the Company to retain 55 % ownership and 55 % of profits and is conditional on the oil fields in the Aktubinsk region containing about 200 mm barrels of recoverable oil.