Coiled Thera Regulatory News (COIL)

22 Mar 2006 07:00

Cambrian Oil & Gas PLC22 March 2006 22 March 2005 Cambrian Oil & Gas Plc (AIM : COIL) Beshkent-Togap Water Injection Project - Initial Well Test Results Cambrian Oil and Gas Plc ("the Company") wishes to inform shareholders of anincrease in the oil production rate at the Beshkent #25 well. This well now consistently shows a 4-fold increase from the previously agreedbase oil production rate of 0.5 tonnes of oil per day (3 barrels per day) toover 2 tonnes of oil per day (13 barrels per day). Well #25 is the closest producing well to the 2 wells, where water injection wascommenced in October 2005. In addition to commencing water injection, somedownhole remedial work was conducted on well #25 to replace tubing and toimprove the efficiency of the downhole pump in this well. The Company believes the increased oil rate at well #25 reflects the combinedbenefits of water injection and remedial downhole repairs conducted on thiswell. At this stage, the net effects of the different activities have not beenresolved. Well testing continues at both well #25 and other adjoining producingwells to improve our understanding of performance in the pilot area. Injection levels to date remain below planned levels due to operational limitsof existing equipment and no increase in oil rate has yet been seen at adjoiningbut more distant producing wells. While at this stage, it has not been possible to differentiate between theimpact of water injection and remedial works, the Company is encouraged by theoverall results. The Company is planning additional remedial activities including upgradinginjection pumps, installing high-pressure packers and connecting additionalinjection wells in the same area. This work should be undertaken progressivelyover the next 3-6 months. Enquiries: Cambrian Oil & Gas PlcNeale Taylor, Chief Executive 0207 409 0890 W.H IrelandTim Cofman 0121 616 2101 Notes to editors: About Cambrian Oil & Gas: Cambrian Oil & Gas (AIM: COIL) listed on AIM on 1 March 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 approximately 70 producing wells withan estimated 65-76 million barrels (MB) of oil in place. To date, just over 4MB of oil has been produced from the field. The Company holds a 50% equityinterest in the uplift in production from the level prior to the water injectionproject; recovery of its capital outlay is via an initial 70% share. Estimatedrecovery from the water injection project is 2MB with the potential to achieveupside incremental oil recovery to 6MB. This information is provided by RNS The company news service from the London Stock Exchange