GOC POSSESSES REASONABLE GAS DEBITS TO SET UP CONTRACT WORK

Daily gas debit of Gobustan Operating Company (GOC) in the Southwest Gobustan contract area comprises 400,000 cu m of fuel or 12 million cu m a month. The State Oil Company of Azerbaijan (SOCAR), who participates in the project, such volumes of gas the GOC will produce from four wells spudded in the field n different times

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The operating company is going to start sale of the SOCAR commercial gas from 1 October 2005 under the appropriate contract concluded earlier. Gas prices gas be defined at $1.29 per 1 million BTU.

At present Kanizdag field on the Coast bloc, which includes Southwest Gobustan, continues drilling appraisal well with the project depth of 3800 meters. The drilling is expected to complete within 2-3 weeks.

Capital expenses of GOC in 2005 were determined as $6.5m, of which $4m will be spent on drilling 5 different wells on Southwest Gobustan.