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Our partners LGI have tested Well NK-9 at three levels. Between 1,397 and 1,403 metres, water was found. Between 1,334 and 1,340 metres, hydrocarbons were found, but with high water content and between 1,292 and 1,304 metres the main reservoir was perforated and intermittent oil flowed at the rate of approximately 40 bopd.
Swabbing has commenced with a view to increasing the flow rates. It is the intention to install artificial lifting equipment on Well NK-9 and continue long-term testing to monitor the well productivity.
The rig used on NK 9 has been released and moved to NK-4 for re-completion work. NK-10 testing will commence after NK-4 re-completion.
Roxi has funded the drilling activities on Well 136 in the absence of a replacement farm-out partner. The well has been drilled to a depth of 3,008 metres and wireline logging has been completed and the rig has been released. Oil shows have been encountered between 2,442 and 3,008 metres. However, further evaluation is needed for testing.
The board expects to announce the appointment of a new farm-out partner in the next few weeks. The new farm-out partner is also expected to become the operator of the Contract Area. Further testing work of Well 136 is therefore expected to be undertaken by the new farm-out partner.
David Wilkes, CEO commented
“We remain on track to continue to develop our core assets throughout 2012.”