BAKU, Azerbaijan, Feb.11
By Leman Zeynalova - Trend:
Zenith Energy, a Canadian company, engaged in the development of Azerbaijan’s Muradkhanli-Jafarli-Zardab block of fields, is awaiting approval to commence drilling activities in well C-30, Jafarli, Trend reports citing Zenith Energy.
As previously announced, all necessary civil works have successfully been completed at the well location, said the company.
As for C 37 well, the company said it intends to install a custom-built bridge plug to isolate the Upper Cretaceous formation and enhance the long-term productivity to be obtained from the Middle Eocene formation.
“To maximize cost efficiency, the company plans to use its fully owned truck-mounted A-100 workover rig to perform this installation with mobilization expected within the next 30 days,” said Zenith Energy.
Andrea Cattaneo, CEO of Zenith Energy, said that it has been a busy start to the year for Zenith as the company continues to focus on our strategy of identifying and completing low-cost acquisitions with significant untapped production potential.
“We are actively seeking to enrich our portfolio with the acquisition of AAOG Congo which we believe has the potential to deliver transformational value via successful drilling activities in the Mengo and Djeno horizons. Recent progress has been very encouraging, and I look forward to updating shareholders further in due course,” said the CEO.
Cattaneo pointed out that this is in addition to consolidating the company’s natural gas production portfolio in Italy with increased, consistent production revenue which has the potential to be further increased via a series of low-risk well interventions.
“Zenith has also recently taken steps to strengthen its advisory team with two key appointments who we anticipate will contribute valuable knowledge and expertise to our ambitious expansion goals in Africa,” he added.
Azerbaijan’s state oil company SOCAR and Zenith Aran Oil Company signed a 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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