Last checked at 6 Oct 2017 07:00
October 6, 2017
ZENITH ENERGY LTD.
("Zenith" or the "Company")
Successful perforation of well C-21 in Azerbaijan
Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; TSX.V: ZEE), the dual listed international oil & gas production company operating the largest onshore oilfield in Azerbaijan, is pleased to announce the successful perforation of a new, unexploited production zone in well C-21 in the Jafarli field.
Following the successful perforation, well C-21 is now flowing at a rate of 15 BOPD. Prior to the perforation well C-21 was not producing.
The perforation was undertaken after examining well data obtained by utilising innovative quad neutron logging technology. The use of this technology enabled the identification of a total of 7.1 metres of unexploited payzone between the depths of 3862 - 3863, 3865 - 3867, 3869.6 - 3871.2, and 3706 - 3708.5 metres in the Middle Eocene geological structure. This is the first time that such technology has been employed in Zenith's Azerbaijan operations.
Zenith's petroleum engineers have identified additional pay zones in well C-21 that present strong prospects for oil production once perforated and tested.
Zenith's operational team intends to install an electric submersible pump (ESP), after the perforations have been completed, to further draw down the formation pressure and increase oil production from well C-21.
The Company will release an Azerbaijan daily oil production update once the high-impact workover of well Z-28 in the Zardab field is completed in November 2017.
Mike Palmer, Chief Operating Officer, Zenith Aran, the Company's Azerbaijan-based fully owned subsidiary, commented:
"This result is a positive development for several reasons. We are now establishing a track-record of systematically restoring production in complex wells that were previously not producing. This is the primary goal of field rehabilitation activities.
Most importantly, however, the Company has now for the first time employed quad neutron logging technology to obtain well data and identify new, unexploited production zones in wells. The first run of this technology in well C-21 has been successful. We have restored production at a rate of 15 BOPD, and the well data collected indicates that additional perforations may further increase the flow rate. We also expect the installation of an ESP to result in production upside.
We will now evaluate other wells where the benefits of this new technology can be best applied."
For further information, please contact:
Zenith Energy Ltd.
Andrea Cattaneo
Chief Executive Officer & President
Email: info@zenithenergy.ca
Telephone: +1 (587) 315 9031
Telefax: +1 (403) 775 4474
Allenby Capital Limited - (Joint Broker)
Nick Harriss
Nick Athanas
Richard Short
Telephone: + 44 (0) 203 328 5656
Optiva Securities - (Joint Broker)
Christian Dennis
Telephone: + 44 (0) 203 137 1903
Abchurch (Financial PR/IR)
Tim Thompson
Telephone: +44 (0) 200 7398 7700