Last checked at 20 Nov 2017 07:00
November 20, 2017
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 ("MAR"). Upon publication of this announcement via a regulatory information service ("RIS"), the inside information contained in this document is now considered to be in the public domain.
ZENITH ENERGY LTD.
("Zenith" or the "Company")
Zardab Field Operational Update
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 an operational update on wells Z-28 and Z-21 in the Zardab field, Azerbaijan.
High-impact workover of well Z-28
The tubing in well Z-28 has been cleaned out to a depth of 3582 metres, 14 metres deeper than the reported liner top (3568 metres). The well was first cleaned out to the depth of 3501 metres where the current top of the tubing is located, at which time a string of tubing was latched onto it, and a CTU (coiled tubing unit) was rigged up to clean the well to the depth of 3582 metres.
The Company's operational team now intends to run a free point tool into the tubing to determine where the tubing can be cut, and subsequently cut off the tubing at the maximum depth possible. Once this is completed a mill will be used to clean up the top of the liner and thereby enable a coiled tubing intervention to again take place and be run to total depth (3944 metres).
Well Z-21
The Company confirms that civil works on the roads to well Z-21 and at the well location have begun.
Well Z-21 has been closely monitored by Zenith's operational team following the blowout which took place on October 18, 2017. Wellhead pressure readings averaging 3675 psi have been recorded, building up approximately every 10 days. The pressure is regularly bled down when these levels are recorded in order to protect the structural integrity of the wellhead.
The workover of well Z-21, expected to begin after the completion of the Z-28 workover, will clean out the wellbore with the objective of restoring the well to production at a consistent rate and pressure.
Mike Palmer, Chief Operating Officer, Zenith Aran, the Company's Azerbaijan-based fully owned subsidiary, commented:
"As I had pointed out in my last statement, our operations in the Zardab field present exceptional potential, but it important to also note that we have encountered a number of difficult challenges that we have successfully overcome. The lack of accurate well data has certainly made the job more difficult and meant that we are effectively learning about the well as we go along.
Our operational team has done a tremendous job so far and I am very pleased with our progress. Indeed, we have no indication that the workover of Z-28 will not be successful. We still have a number of slow and difficult tasks during the weeks ahead to complete the workover, but I am confident we can achieve a great result."
For further information please contact:
Zenith Energy Ltd.
Andrea Cattaneo
Chief Executive Officer
Email: info@zenithenergy.ca
Tel: +1 (587) 315 9031
Fax: +1 (403) 775 4474
Optiva Securities - (Joint Broker)
Christian Dennis
Tel: + 44 (0) 203 137 1903
Beaufort Securities Limited - (Joint Broker)
Jon Belliss
Tel: +44 207 382 8300
Allenby Capital Limited - (Financial Adviser)
Nick Harriss
Nick Athanas
Richard Short
Tel: + 44 (0) 203 328 5656
Yellow Jersey (Financial PR/IR)
Tim Thompson
Tel: +44 (0) 203 735 8825