10/24/2011 | 10:30 pm
Caspian Oil & Gas Limited : West Mailisu #2 Well Update
25 October 2011
NEWS RELEASE West Mailisu #2 Update Perth, Western Australia: Caspian Oil & Gas Limited (ASX: CIG) is pleased to provide an update from its West Mailisu #2 well on the Company's 100%-owned West Mailisu licence in the Kyrgyz Republic, Central Asia.
Caspian reported on 12 September that its West Mailisu #2 well was suspended awaiting production testing with a progressive cavity pump (PCP).
The PCP proved incapable of lifting the fluid to the surface, although on pulling the completion from the hole oil was found within 8m of the surface. As the pump had been set just above the perforations (around 1680m) it is possible to conclude that there is little to no water being produced from the formation. Currently, there is around 75bbls of fluid in the hole which is most likely entirely oil.
In order to test and produce from the well, we are currently determining the appropriate pump and will commence production testing once the equipment has been sourced. Once having undertaken the production test in-well-bore radial drilling or fraccing will be considered as a way to enhance productivity.
Initial estimates suggest that there is a potential mean recoverable resource of 1.0 million barrels, with an upside case of 2.2 million barrels of oil within Bed III of the West Mailisu structure.
The West Mailisu prospect lies adjacent to the Mailisu IV oil field, which has produced more than
42mmbbls of oil.
Figure 1- West Mailisu # 2 well site
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Figure 2- Oil From West Mailisu # 2 well Figure 3 - Time structure Map top Eocene Carbonates
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West Mailisu #2
Bed III
Eocene Carbonate
Jurassic
Figure 4 - Seismic Line FESN09-02
West Mailisu #2 (offset)
Mailisu IV Oil Field
Bed III
Eocene Carbonate
Jurassic
Figure 5 - Seismic Line CAS10-05
Graeme Parsons
Chief Executive Officer
For further information please contact; Graeme Parsons Colin Carson Telephone: +61 448187149 Telephone: +61 8 9240 2405
Email: parsonsg@caspianogl.com Email: carsonc@caspianogl.com
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Background
Caspian Oil & Gas, through its subsidiaries JSC Textonic (Caspian equity 100%) and South Derrick LLC (70% equity), holds a number of licences in the Fergana Basin, giving it a significant exploration position within the Kyrgyz Republic (see location map below).
Caspian operates its own 650hp drilling rig (pictured) in its Kyrgyz operations.
Location Map of Caspian Licences in the Kyrgyz Republic
More information is available on the Company's website www.caspianogl.com
The information in this report that relates to oil and gas exploration results and hydrocarbon reserves is based on information compiled by Mr Graeme Parsons, who is a petroleum geoscientist. Mr Parsons is a Director and full-time employee of the Company. Mr Parsons has more than 30 years' experience in this discipline and he consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. |
