New oil zone found in Ninotsminda, Georgia
CanArgo Energy Corp. says it has discovered a new oil zone in the Ninotsminda area of the Republic of Georgia. Well N97 tested an interval of Sarmatian sandstones from 1,900-1,923 meters (6,234-6,309 ft) at an initial production rate of 515 b/d oil through an 8 mm (20/64 inch) choke with a flowing tubing head pressure of 33 atmospheres (485 psi). The oil is light, with a gravity of 42 degrees API.Multi-rate flow testing and pressure surveys are now underway to determine reservoir parameters and optimum production rate prior to placing the well on production. In addition to the oil production, the well flowed considerable amounts of gas, the volumes of which will be measured during the next testing phase, and which will be co-mingled with existing gas production for sale to AES.
This is the first oil test of the Sarmatian in the Ninotsminda area, and has proved a new reservoir above the currently productive Middle Eocene zone. Several wells drilled in the Soviet era penetrated this zone but shows were masked by heavy mud weights, and they were not tested or fully evaluated. CanArgo believes that based on the results of N97Z, some of these wells have potential for production, as well as providing data for the evaluation of the Sarmatian discovery and the extent of the sands. Work is currently underway to quantify the reserve and production potential of this reservoir. CanArgo believes that this discovery opens up new potential in the upper sequences in the Ninotsminda area, as well as the Nazvrevi and Norio Blocks. The relatively shallow level of the Sarmatian reservoir is also positive with regard to the potential costs of any development drilling.
Murray Chancellor, Chief Operating Officer commented, "Clearly we are delighted to announce the discovery of a potentially significant new oil reserve in the Ninotsminda area. Production from this Sarmatian sand will commence immediately, adding to existing production. We are now planning an appraisal program to confirm the extent of these added reserves. Together with the imminent test of the Upper Eocene, and the on-going program of drilling to the Cretaceous, we are excited about the long term prospects for development in the Ninotsminda area."
Plans for 2001
CanArgo also outlined plans for exploration, appraisal, and development activity for the next 12 months.
On the Ninotsminda Middle Eocene reservoir, the next horizontal well N48H is about to commence, and further horizontal re-entries are planned for next year in addition to the ongoing workover program. The Upper Eocene reservoir in Ninotsminda is currently been evaluated by the N78Z well. This well has now completed drilling and a testing program for this well is being prepared which should commence before the end of this year.
The Ninotsminda area Cretaceous exploration program, partly funded by AES, is continuing. Well N100 should commence before the end of the year, this well being located in the central part of the Ninotsminda. Site preparation for the second Cretaceous well, M11, located in the Manavi prospect, has commenced, and it is expected that this well will be spudded in early April 2001.
Seismic acquisition on the Kumisi prospect is now complete, and given positive results from the interpretation an appraisal well on the Kumisi R16 gas discovery is planned to commence in May / June 2001. In addition, seismic acquisition is now complete on the Norio Block, on which a production sharing contract is currently being negotiated. Given positive results from the seismic and a successful conclusion to the negotiations it is likely that a Norio well would be drilled next year to test the very significant potential of this block.
CanArgo Energy Corp. is an independent oil and gas exploration and production company operating in Eastern Europe. CanArgo's principal oil and gas operations are located in the Georgia.
Edited by Dev George
Managing Editor, Oil and Gas Online