Arawak provides update on drilling operations
Monday December 19, 10:54 am ET
TSX VENTURE TRADING SYMBOL: ABG
ANGUILLA, British West Indies, Dec. 19 /CNW/ - Arawak Energy Corporation ("Arawak" or the "Company") is pleased to provide an update of its current drilling activities in Russia and Azerbaijan.
In Russia, the first three horizontal/high angle wells have now been completed in the Sotchemyu-Talyu field in the Komi Republic which is held by the Company's 50% owned subsidiary ZAO PechoraNefteGas ("PNG"). The first well drilled in the field as a horizontal well, well number 236, drilled a total horizontal section of 214 meters with 133 meters of apparent pay on logs and was completed open hole. The well was placed on production with an initial rate of 754 barrels of oil per day ("bopd") with no water cut which was constrained by the size of the downhole pump. The well is currently producing at a stabilized rate of 604 bopd with 7% water cut. The second well, well number 234, drilled at a 75 degree angle, encountered 22 meters of apparent pay on logs. On open hole DST the well recovered 3.8 cubic meters of clean oil on an 88-minute flow period which corresponds to an initial potential of about 400 bopd. After running a slotted liner and completing the well, the well progressively began to produce significant water. A gyro survey was run which confirmed that the toe end of the well had dipped down below the oil-water contact. Operations are currently underway to isolate the lower portion of the well in order to shut off this water. The third well, well number 142 was drilled at 71 degrees as a highly deviated well through 2 pay horizons and had a total apparent net pay section of 16 meters. The well was completed over this past weekend and came on production at an initial rate of 291 bopd. As a result of the incorporation of these new wells into the production stream, the field has reached a new all time high production capacity of 6,957 bopd (3,478 bopd net to Arawak), an increase of more than 30% over the production rate of 5,326 bopd at year end 2004.
With the horizontal well concept proven, the going forward development drilling plan is to ramp up to a 4-rig program and bring 17 new wells on stream in 2006. Presently there are 3 rigs active in the field, drilling two horizontal wells and 1 deviated well. We anticipate to bring all three wells on line by early February.
In Azerbaijan, the new 2,800 meters gas well drilled in the Coastal block, Duvanny 108, had also been successfully tested at a rate of 6 million cubic feet per day through a 6.3 mm choke. Work is continuing on the sidetrack to penetrate the exploration section of the Kyanizadag 101 well, also on the Coastal block. The well is expected to TD at 4,000 meters and test results are expected in January.
Arawak's President and CEO Alastair McBain said "We are very encouraged by the flow rates achieved by our first horizontal well in Russia and we believe this vindicates our plan for aggressively developing the Sotchemyu- Talyu field and obtaining higher production rates. Taken in conjunction with the good results from Azerbaijan, we believe we are now set for a period of strong production growth from all our locations."