Worldwide Energy News - Article

Caspian Oil & Gas plans 11 well drive - Kyrgyzstan

This small nation will shortly host a multi-well drilling campaign in the hope it will impact output levels which in 2006 averaged 1,400 bo/d and 2.8 MMcfg/d.  Holding a number of exploration tracts, Caspian Oil & Gas announced that its partner Santos will start a 600-700km 2D seismic program before the end of May 2007 over several licenses in various parts of the country.  In addition Caspian has signed to purchase the 650hp ZJ20 land rig from a Chinese manufacturer for US$ 3.5 million.  The unit is capable of drilling to 2,500m and it will be used in an initial 11-well drilling program that should get underway around the middle of July 2007.  The campaign will comprise six wells on Mailiasu III targeting Paleogene limestone beds V and VII at depths between 600 to 1,000m and will effectively delineate an extension to state-run KNG’s existing producing oil field.  Two wells will test fault-controlled structures in East Mailisu and North Charvak where reservoir targets are stacked and include Paleogene limestone beds V and VII and Cretaceous clastics.  At Charvak, where three wells are producing small amounts of oil from the limestone Bed V at depths of between 93 and 178m, three wells are planned to test shallow sandstones and conglomerates.  Caspian is in the process of issuing 175 million new shares to raise US$ 9.2 million to fund the rig purchase and other expenses.  In 2005, Santos entered into a farm-in agreement with Caspian whereby it would earn an 80% operated interest in 17 exploration permits licensed to Caspian or its subsidiaries.  In addition Santos took a 15% direct equity placement in Caspian.  Santos will sole fund and operate a phased work program over all of the licenses over a period of approximately four years to earn the working interests.

Subscribe now or register for a free trial of Energy News On Demand or the International Oil Letter.


© Copyright 2007, IHS and its affiliated and subsidiary companies, all rights reserved. All trademarks belong to IHS and its affiliated and subsidiary companies unless otherwise noted, all rights reserved. The material and data contained herein have been compiled for the exclusive use of subscribers of IHS and no part hereof shall be reproduced, quoted or published in any manner without the written consent of IHS. Information presented in and used by IHS is obtained from operator sources but is not warranted as to its accuracy by the publishers.