Zenith Energy reveals expected revenue from Azerbaijan’s Jafarli field
Baku, Azerbaijan, Oct.9
By Leman Zeynalova – Trend:
Canada’s Zenith Energy company expects to get approximately $5,500,000 yearly revenue from C-37 well of Azerbaijan’s Jafarli field, Trend reports citing Zenith Energy, operator for development of Muradkhanly-Jafarli-Zardab block of oil fields onshore Azerbaijan.
The company confirmed that continued flow testing of the well recorded a production rate of approximately 285 barrels of oil per day, adding significant uplift to Zenith's total in country production figure.
Yearly revenue of approximately $5,500,000 is expected to be generated from C-37, and a stabilised flow rate of 285 represents a 114 percent increase in the company's daily oil production.
Further stimulation of the well, which may include swabbing operations as well as the performance of nitrogen stimulation, may further increase the rate of production, said Zenith Energy.
As for C-30 drilling operations, Zenith Energy said mobilisation of Zenith's 1,200hp drilling rig to the C-30 well location is expected to take place before the end of October 2019.
"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,” said Zenith CEO Andrea Cattaneo.
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 oil fields. Zenith Energy Ltd established its subsidiary company Zenith Aran Oil Company Ltd for production operations in these three fields. Production under the agreement began in August 2016.
Zenith holds an 80-percent participating interest in the three fields within the contract area, while SOCAR retains the remaining 20 percent. The agreement is for 25 years, with a potential extension by five additional years.
The total area of the Muradkhanli, Jafarli and Zardab fields is 642.2 square kilometers, and according to the contract, it is divided into rehabilitation and exploration territories.
The Muradkhanli-Jafarli-Zardab block is located in the Yevlakh-Agjabadi oil and gas region of Imishli district of Azerbaijan. The Muradkhanli field was discovered in 1971, Jafarli - in 1984, and Zardab - in 1981.
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