Kulczyk Encounters Multiple Gas Zones at Olgovskoye-8
Kulczyk Oil Ventures Inc. has announced the completion of drilling on the O-8 well in the Olgovskoye Field.
HIGHLIGHTS
-- O-8 development well has reached total depth ("TD") of 2,780 metres;
-- Wireline logging and evaluation identified up to 135 metres of gas pay
across 35 reservoir zones;
-- Testing program to commence in Q1 2011;
-- Drilling rig moving to next location at O-9;
O-8 Development Well
The O-8 well is located in the southern part of the Olgovskoye Field approximately 2,100 metres to the southeast of the O-7 well which was recently put on production. The O-8 well commenced drilling on November 17th and was designed to target the gas-bearing reservoirs of the Lower Bashkirian. The well reached a TD of 2,780 metres on January 3rd. Wireline logging of the open hole identified, depending on the petrophysical cut-offs used, up to 135 metres of hydrocarbon-bearing pay over 35 reservoir intervals and the well was cased to TD in preparation for completion as a producing gas well.
Olgovskoye Field
With the recent tie-in of the O-7 well, the Olgovskoye Field now produces from 4 wells (O-3, O-4, O-5 and O-7) with each well producing from a separate horizon. The O-3 well produces from a Lower Muscovian horizon, the O-4 well produces from the Middle Bashkirian sands and the O-5 well produces from an Upper Muscovian horizon. The recently tied-in O-7 well produces from a Lower Bashkirian horizon.
Location of Next Well
The drilling rig is now being moved to the O-9 location which is located within the Olgovskoye license area approximately 1.2 kilometres to the northwest of the O-8 well. The O-9 well is designed to test gas-bearing reservoirs in the Lower Bashkirian and further develop the gas production capability of the Olgovskoye Field. It has a planned TD of 2,600 metres.
Commencement of 3D Seismic Acquisition
A 120 sq. km 3D seismic acquisition program commenced at the end of January. This program is designed to cover the entire Olgovskoye and Makeeyevskoye license areas. The acquisition should be complete by the beginning of the second quarter.
Progress with KUB-Gas Assets
Kulczyk Oil is very pleased with the results of work done on the KUB-Gas assets since the acquisition in June. KOV announced the results from the M-19 gas discovery in the Makeevskoye Field on January 10th and the acquisition of an additional license at North Makeevskoye on January 13th. The work program for 2011 will principally target a continuation of the comprehensive and efficient exploitation of the Olgovskoye and Makeevskoye Fields. This will involve the drilling of new wells, the completion of new zones in existing wells, dual completions, stimulation treatments using modern and technically advanced methods commonly used elsewhere in the world and the effective implementation of a compression strategy.
KOV owns an effective 70% interest in KUB-Gas LLC. The gas producing assets of KUB-Gas consist of 100% interests in four licenses near to the City of Lugansk in the northeast part of Ukraine.