(Alliance News) - Zenith Energy Ltd on Thursday said it will perform "downhole operations" to optimise production from the C-37 well in Azerbaijan.
Zenith operates the largest onshore oilfield in Azerbaijan by cumulative acreage, following signing of a 25-year production sharing agreement with State Oil Co of the Republic of Azerbaijan, or SOCAR, in 2016.
The oil & gas producer plans to install a custom-built bridge plug at the C-37 well to isolate the Upper Cretaceous formation and enhance the long-term productivity from the Middle Eocene formation.
Following the plug installation and commencement of full operations, Zenith expects the C-37 well to produce around 250 to 300 barrels of oil per day without stimulation.
Zenith does however plan to perform stimulation activities on the C-37 well to progressively further increase productivity from the Middle Eocene formation.
Elsewhere, Zenith has completed civil works at well C-30, also in Azerbaijan. It is currently in discussions with partner SOCAR to obtain final approvals to commence drilling operations.
Zenith in addition has commenced geological and technical investigations in consultation with SOCAR to drill an exploratory well in 2020.
Andrea Cattaneo, chief executive of Zenith, said: "The company looks forward to achieving stabilised production from well C-37 following the completion of downhole operations. We are extremely motivated to achieve further success in C-30 well deepening operations with the benefit of the important experiences gained during C-37 operations."
Zenith shares were up 3.5% at 2.20 pence each in London on Thursday afternoon.
By Tapan Panchal; tapanpanchal@alliancenews.com
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Zenith Energy (ZEN)