Coiled Thera Regulatory News (COIL)

13 Oct 2005 07:00

Cambrian Oil & Gas PLC13 October 2005 Cambrian Oil & Gas Plc ("COIL" or "the Company") Beshkent-Togap Water Injection Commences Cambrian Oil and Gas Plc announces that it has commenced water injection toimprove oil recovery at the Beshkent-Togap oil field in the south west of theKyrgyz Republic and expects to share in incremental oil production within 3-4months. Key Points: • COIL has invested US$350,000 in setting up a pilot water injection project • A schematic layout of the pilot project is attached, it shows water being injected into 2 wells and is expected to increase oil production at adjoining or nearby updip wells • Newly installed facilities include a water source well, pumps, a water pipeline, 6 settling tanks, measurement facilities, and workovers to convert 2 wells to injectors; a 3rd injector is planned • Water injection has commenced in one well with testing underway for injection to commence in the second well • Increased oil production at nearby producing wells is expected in 3-4 months providing COIL with its first petroleum income; an earlier Soviet-era pilot in the early 1990's more than doubled oil production from the field before being allowed to fall into disrepair • COIL will look to quickly expand the project across whole field based on initial results Neale Taylor, Chief Executive Officer of Cambrian Oil and Gas Plc, said: "Thebeginning of water injection at Beshkent -Togap marks a milestone in our plan toapply proven and yet relatively simple technology to deliver an early increasein oil production. We intend to roll out the process of water injection toother wells across the field as we move towards delivery of an incremental oilrecovery of 2 MB. The revenue generated from this first step will speed up theprocess of expanding water injection across the field." Please click on the following link to view the schematic layout of the pilotproject: http://www.rns-pdf.londonstockexchange.com/rns/6020s_-2005-10-12.pdf Ends For Further Information please contact: Cambrian Oil & Gas Plc Neale Taylor, CEO +44 (0) 20 7409 0890 Paul Mc Groary, Director + 44 (0) 79 3056 8160 Parkgreen Communications Victoria Thomas / +44 (0) 20 7493 3713 Justine Howarth Notes to editors: About Cambrian Oil & Gas: Cambrian Oil & Gas (AIM : COIL), previously Silvermines Media Plc (AIM : SLV) acompany first admitted to trading on AIM on 15 July 2004, was readmitted to AIMon 1 March 2005 following an acquisition of the entire issued share capital ofZhibek Resources Plc. Zhibek was formed in February 2004 for the purpose ofconducting oil exploration, development and production activities in CentralAsia and FSU. COIL currently has three operational projects in the Kyrgyz Republic; theBeshkent-Togap water injection project; the Tash Kumyr exploration project, anexploration licence area with 5 prospects and a recently acquired intermountainbasin exploration licence area, which adjoins Lake Toktogul. Drilling at Tash Kumyr is expected to begin in 2006, following completion of the2D seismic program which began on 20 September 2005. The Beshkent-Togap Oil Field is located in the south-western region of theKyrgyz Republic. The field is approximately 14 kilometres long and twokilometres wide. It is situated approximately 300 kilometres west of the Kyrgyzoil refinery at Jalal Abad and approximately 200 kilometres southwest of theUzbekistan oil refinery in the city of Fergana. The Beshkent-Togap oil field currently has in excess of 70 producing wells withan estimated 65-76 million barrels (MB) of oil in place. To date, only 4.1 MBof oil has been produced on the field. COIL holds a 50% equity interest in theuplift in production from the previous level, prior to the water injectionproject, and after recovery of its capital outlay via an initial 70% share.There is the potential to achieve upside incremental oil recovery of 6MB. This information is provided by RNS The company news service from the London Stock Exchange